Kain, the founder of Synthetix, published a blog post titled "sUSD: The Road to Re-Pegging," outlining the path to re-adjust incentives, restore the sUSD peg, and lay the groundwork for L1 and Perps V4 on snaxChain. In late 2024, when SNX fell below $1, Synthetix launched a "debt forgiveness" program, concentrating historical sUSD debt in the on-chain 420 Pool. Although this avoided a liquidation crisis, it disrupted the arbitrage pegging mechanism of sUSD. To restore sUSD to $1, it is necessary to reintroduce incentives: positive incentives involve staking sUSD into the 420 Pool to receive SNX inflation rewards; negative incentives require stakers to deposit a certain percentage of sUSD (initially 5-10% of outstanding debt) with debt forgiveness paused if targets are unmet, and the percentage increased if the peg deviates. Additionally, the staking model is optimized by implementing SNX pooled staking, creating a new 420 Pool to accept new collateral assets, expanding the supply of sUSD without liquidation risks, initially including USDC and potentially expanding to other DeFi tokens.

As incentives are re-adjusted and the peg is restored, four coordinated measures will be executed: phasing out the old v2/v2x systems, integrating debt and liquidity into a new staking-only pool; launching Perps V4 on Ethereum mainnet, supporting multiple collaterals and off-chain order matching; launching snaxChain on a dedicated Superchain application chain, hosting options and perpetual contract markets; and minting an additional 170 million SNX as an incentive pool, bringing the total supply to 500 million tokens, with the new tokens deployed on snaxChain and dedicated to incentives.