Synthetix Founder Warns SNX Stakers to Fix SUSD Depeg

Kain Warwick, the founder of Synthetix, has given a firm nudge — and maybe a bit of a warning — to SNX stakers, urging them to embrace a new staking mechanism aimed at fixing the ongoing sUSD depeg issue.

In a post on X dated April 21, Warwick shared that a new sUSD staking system is now live. While it currently lacks a proper user interface and is pretty “manual,” he believes it’s a key step toward resolving the problem.

But he made it clear: once the UI is up and running, if there’s not enough participation, things could get a little more intense. “We may need to turn up the heat,” Warwick said, referring specifically to stakers in the new sUSD 420 pool.

Launched on April 18, the sUSD 420 pool offers an incentive: users who lock up their sUSD for a year will get a percentage of the 5 million SNX tokens distributed over 12 months.

“This is a fixable issue — and it’s up to SNX stakers to step up,” Warwick emphasized. “We tried doing nothing, and it didn’t work. Then we offered a carrot, and it sort of helped. But I’m holding off on calling it a success.”

And in classic Warwick fashion, he added with a touch of humor: “You all know I’m not afraid to use the stick. So if you think you can just skip the carrot… I’ve got some bad news for you.”

Update on the sUSD depeg. We have implemented an sUSD staking mechanism but it’s very manual until the UI goes live in a few days. Here was my hot take from discord though.

— kain.inx (@kaiynne) April 21, 2025

His comments have sparked intense debate within the Synthetix governance forums, with some members calling for immediate protocol updates and others urging caution. Despite differing opinions, the consensus is clear: the sUSD peg must be restored to ensure long-term trust in the system.

This situation highlights the complex dynamics of decentralized governance and the critical role that community participation plays in maintaining protocol stability. As discussions continue, all eyes are on the SNX stakers, whose decisions in the coming days could determine the future trajectory of Synthetix and its core stablecoin.