Synthetix · interactive mechanism simulation

SNX stakers lock collateral into a shared debt pool and mint sUSD. Traders swap synths against that pool at oracle prices (zero slippage) — every trade skews the *global* debt every staker owes. Fees and SNX inflation flow back to stakers, but only while they hold the target collateralization ratio. Try the SIP-420 button to see what happens when that incentive is removed.
SNX stakers 2,000 SNX locked SNX price: $8.00 Shared debt pool 4,000 sUSD debt c-ratio: 400% (target 400%) sUSD peg: $1.000 Traders buy / sell synths Synth exchange oracle-priced, zero slippage sBTC/sETH vs sUSD Fees + inflation reward pool: 0.0 sUSD payouts: unlocked
Trades simulated
0
Global debt pool
4,000 sUSD
Collateralization ratio
400%
sUSD peg
$1.000
Rewards paid to stakers
0.0 sUSD-eq
Parameters — edit me
400%
2.0%
1.4/s
40%
0.8/s
Controls

Illustrative simulation. Defaults mirror the researched Synthetix mechanism (pooled SNX collateral, ~400% target c-ratio, oracle-priced zero-slippage synth exchange, shared debt that skews with aggregate trader P&L, fee + inflation rewards gated on c-ratio). "Trigger SIP-420 jubilee" mimics the 2025 incentive change that forgave debt and removed the peg-defense incentive, depegging sUSD toward $0.68 — trade sizes, timing and price paths are randomized for visualization, not live onchain data. Part of The Onchain Experiment Atlas.