rewrite this title SNXweave Weekly Recap 172

March 12, 2025

The following post contains a recap of news, projects, and important updates from the Spartan Council and Core Contributors from last week.

👉TLDR

420 Pool is LIVE:Existing stakers who join the 420 Pool will have their debt forgiven linearly over a 12-month period, with 50% forgiven at 6 months and 100% by the end of the year.No liquidation riskProtocol benefits: Improved sUSD liquidity, better capital efficiency, new product development.Phase 2: Staking incentives for new stakers.Phase 3: Buy & Stake feature that will allow users to bridge and swap SNX from other EVM chains directly into the 420 Pool.How to LP and earn with sUSD/sUSDeOngoing rewards for sUSD depositors on Infinex (4 more weeks):Deposit $1,000 or more sUSD into your Infinex account10,000 OP distributed weeklyWeekly raffle prizes: 3 winners (1 entry for each $1,000 sUSD deposited)

Spartan Council and SIP updates

420 is live!! This has introduced a significant change to the Synthetix staking model, aiming to simplify the staking experience while eliminating key risks and inefficiencies. The 420 Pool is officially lit, and relieved 100 million SNX in debt on the first DAY. If you’re an existing staker, it’s time to migrate and start burning.

Existing stakers who join the 420 Pool will have their debt forgiven linearly over a 12-month period, with 50% forgiven at 6 months and 100% by the end of the year.

There’s no need to manually manage debt or maintain collateralization ratios anymore, because the protocol will handle it automatically. And the SNX staked in the 420 Pool is protected from liquidation, addressing one of the major concerns with traditional staking.

With sUSD now actively managed by Synthetix, SNX stakers can benefit from yield from external strategies like Ethena, Aave, and Morpho. And additional revenue can come from providing liquidity to perps markets, which could deepen on-chain markets and strengthen the peg of sUSD.

Benefits to stakers:

No liquidation risk: Once staked in the 420 Pool, your SNX is free from liquidation, creating a more secure environment for stakers.Debt relief: If you have debt from minting sUSD, this will be forgiven over time, making it easier for you to benefit from staking without the complexities of debt management.

Benefits to the protocol:

Improved sUSD liquidity: Synthetix can manage and allocate sUSD liquidity more effectively across DeFi platforms, enhancing the stability and accessibility of sUSD.Better capital efficiency: The lower collateralization ratio (200%) allows the protocol to mint more sUSD with less SNX, boosting liquidity and market depth.New product development: The increased liquidity and capital efficiency will support the launch of new products, such as perps, leveraged tokens, and future vaults.

What’s Next?

Phase 2 will bring new staking incentives for those who haven’t previously staked their SNX.Phase 3 will feature a “Buy & Stake” feature that will allow users to bridge and swap SNX from other EVM chains directly into the 420 Pool.

Overall, the 420 Pool is designed to make staking more accessible, secure, and rewarding for both current stakers and new participants. By addressing long-standing issues like debt management and liquidation risk, Synthetix aims to streamline the staking process while fueling the growth of sUSD liquidity. This is an exciting opportunity for SNX holders to benefit from a simpler, more efficient staking model — so don’t miss out on this!

Here’s how to get started:

Navigate to the 420 Pool App and connect with the wallet that holds your SNX staking position.Select your network: Ensure you are on the correct network (Optimism or Ethereum) where your SNX is currently staked.Burn your debt: Clicking “Burn My Debt” will prompt a confirmation modal to proceed. Once confirmed, your SNX will be delegated to the 420 Pool, and your debt will begin burning over 12 months.Track your debt burn: After a successful migration, you will see a Debt Burn tracking interface. Your debt will decrease linearly over 12 months — 50% after 6 months and 100% after 12 months. Debt will never increase, and you can never be liquidated. Once 12 months are complete, your debt reaches 0 and your SNX is automatically unlocked.

To unstake, just use the “Withdraw” button. There is a 7-day cooldown before withdrawn SNX can be claimed. If you choose to exit before your debt is fully burned, you must repay your remaining debt, minus the early exit penalty. Penalties only apply to burned debt, which means you will never owe more than your debt at entry.

In preparation for the 420 launch, Synthetix has also been pushing sUSD liquidity providing. Why provide liquidity? To earn rewards and support Synthetix’s ecosystem by deepening sUSD liquidity!

The sUSD/sUSDe pool is pretty cool because sUSDe is yield bearing, and there are incentives from Ethena for LPing. The pool accepts two assets: either sUSD (Synthetix’s stablecoin) or sUSDe (a yield-bearing synthetic dollar from Ethena). Check out this blog to learn how to deposit and get started providing liquidity!

Lastly, don’t forget that rewards for sUSD depositors on Infinex are still ongoing! The program has four weeks left, with a total of 10,000 OP tokens up for grabs each week. Reminder that in order to qualify for the OP distribution, Infinex users must hold a minimum of 1,000 sUSD deposit on the last day of the week. And don’t forget that 1 Patron NFT, 1 ETH, and 1,000 SNX are up for grabs every week for three lucky winners (one raffle entry for every 1,000 sUSD in your Infinex account).

SNXweave YouTube Podcast: https://www.youtube.com/@snxweave

Follow us on Twitter! @snx_weave