sUSD is a synthetic USD token enabled by the Synthetix protocol that tracks the price of the US Dollar through price feeds supplied by Chainlink’s decentralized network of oracles.
Synthetix is a decentralized synthetic asset issuance protocol built on Ethereum and Optimism Ethereum (a layer two scaling solution built on Ethereum). These synthetic assets are collateralized by the Synthetix Network Token (SNX) which when locked in the contract enables the issuance of synthetic assets (Synths).
This pooled collateral model allows users to perform conversions between Synths directly with the smart contract, avoiding the need for counterparties and this mechanism solves the liquidity and slippage issues experienced by DEX.
Synthetix currently supports synthetic fiat currencies, cryptocurrencies (long and short), and commodities. Many protocols have been built on top of the Synthetix infrastructure. These include but are not limited to, Kwenta which offers perpetual futures and spot exchanges, Lyra which offers options trading, Curve which offers cross-asset swaps, and hedge which allows traders to pool capital and offer a decentralized hedge fund service.
Concerning sUSD loan fees, the initial interest rate is 0%, but at some point, during the trial, it may be increased via SCCP. This annualized interest rate is paid in sUSD at the time of closing the loan and sent to the feePool, which is distributed to SNX stakers. The loop advantage of borrowing sUSD over sETH is that borrowers are no longer effectively shorting ETH, and it supplies more sUSD liquidity to the DeFi ecosystem, as it has recently been in high demand.
Following governance, Synthetix has a system of councils that helps to oversee and govern the protocol. The Spartan Council, the key governing council of Synthetix, is elected by the community and decides which changes to the protocol are approved. Additionally, many different kinds of Synths can be added to the system to provide greater utility to Synthetix. These include commodities, long-tail crypto assets, and others.
sUSD is integrated across the DeFi ecosystem as one of the most liquid decentralized stablecoins, including at Curve, and can be traded without slippage for other assets native to the Synthetix protocol at Kwenta or Synthetix.Exchange.
Concerning staking, if an SNX staker wants to exit the system or reduce their debt and unlock staked SNX, they must pay back their debt. At its simplest: a staker mint 10 sUSD by locking SNX as collateral, and must burn 10 sUSD to unlock it. But if the debt pool fluctuates (and therefore their debt fluctuates) while they are staked, they may need to burn more or less debt than they minted. The process for reducing debt to zero involves the Synthetix contract which determines their debt balance and removes them from the Debt Register. Also, the required amount of sUSD is burned, and a total supply of sUSD is updated along with the sUSD balance in the user’s wallet.
Who are the founders of the sUSD?
Kain Warwick is the founder of Synthetix, a synthetic asset issuance platform built on Ethereum. He is also the Co-Founder and CEO of blueshyft, a retail payment network of over 1200 locations across Australia. Blueshyft has become the largest cryptocurrency payment gateway in Australia, processing tens of millions of dollars in transaction volume.
In 2020, Kain participated in the funding round of 1inch Protocol in Sep 2020 and released Synthetix decentralized asset management platform dHedge in Jul 2020. Kain also added synthetic tokens of real-world assets like Brent oil and the Nikkei stock index in Mar 2020.
What is sUSD used for?
The developers have bundled the minting and burning processes into a single staking screen, as it’s rare that stakers will need to do them both at the same time, allowing participants to stake easily.
There are several different ways to earn yield in the Synthetix ecosystem; they also give an overview of more possible yields users can leverage.
Ether integration and compatibility
Developers can enjoy other benefits of the protocol as it successfully allows for the integration of Ether as collateral. The integration includes safety, scalability, and user onboarding — allowing ETH holders access to Synths without letting go of their Ether, making it an important user experience in increasing trading volume.
What is the Unique Point of sUSD?
The Synthetix platform offers risk mitigation strategies through a decentralized protocol developed by the Synthetix team and is also committed to decentralization and censorship resistance. This includes crucial areas such as the price feeds. Chainlink, a reputable provider of decentralized oracle solutions, supplies all oracles, and Synthetix does not rely on a centralized solution.
Also, Synthetix has a trial with a 10m sUSD ceiling and a liquidation deadline of three months, which means that after three months the contract can be configured via SCCP for ETH stakers to be liquidated to close out the trial period. For more details, see the “Liquidation possibility” section below.
The initial minting fee is 0%, but at some point, during the trial, it may be increased via SCCP. This minting fee is paid in sUSD at the time of opening the loan and sent to the feePool, which is distributed to SNX stakers.
How many sUSD coins are in circulation?
sUSD has a circulating supply of 87,460,811 SUSD coins and a max. supply of 142,399,574 SUSD coins.
How is the sUSD Network secured?
The new Synthetix bug bounty is protected by the Immunefi. Immunefi is a bug bounty platform for smart contracts and DeFi projects, where security researchers review code, disclose vulnerabilities, get paid, and make crypto safer.
Since Synthetix has become one of the largest and most integrated protocols across DeFi, engineers and bounty hunters must be correctly incentivized to practice responsible disclosure if they find anything that needs to be fixed.
Hence, new deployments to the Synthetix smart contracts are consistently audited by external parties. The new Synthetix bug bounty program will be hosted by the team at Immunefi, so any issues found can be submitted there and every claim will be filtered by Immunefi and valid ones investigated by Synthetix Core Contributors. Also, bounties can be paid in SNX or sUSD at the bounty hunter’s choice.
How do I buy sUSD (sUSD)?
Synthetix has already delivered one of the most complex and useful protocols built on Ethereum to date. But the potential for censorship-resistant synthetic assets is still largely untapped. The sUSD token can be used for a wide range of uses like staking and governance.
sUSD tokens can be easily purchased by the following steps.
* Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and buy sUSD through your trading account.
Which Cryptocurrency Wallet Supports sUSD (sUSD)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as sUSD (sUSD). Because of its vast use case, it has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. Users can easily use PTPWallet as their sUSD wallet because it offers a simple interactive interface, making it easy for people to navigate its system.