sUSD is a synthetic USD token powered by the Synthetix protocol. Tracking the price of the US Dollar through price feeds provided by Chainlink‘s decentralized oracle network, sUSD is characterized as one of the most crucial components of the DeFi ecosystem.
What is sUSD (SUSD)?
sUSD (SUSD) is a token that tracks the price of 1 US dollar. Behind SUSD is the Synthetix protocol, and the platform hosts numerous cryptocurrencies like sUSD.
Synthetix is defined as a derivative liquidity protocol. It is a decentralized synthetic asset issuance protocol built on Ethereum. These synthetic assets are collateralized by the Synthetix Network Token (SNX) which, when locked in a contract, enables the issuance of synthetic assets (Synths).
This pooled collateral model allows users to directly convert between Synths via a smart contract, eliminating the need for a counterparty. This mechanism aims to solve liquidity problems experienced by DEXs. According to statements, Synthetix currently supports synthetic traditional currencies, cryptocurrencies, and commodities.
SNX holders are encouraged to stake their tokens as they are paid a proportional share of the fees generated through activities on Synthetix.Exchange, depending on their contribution to the network. They are granted the right to participate in the network and capture fees generated from Synth exchanges, which underlie the value of the SNX token. In addition, trading on Synthetix.Exchange does not require investors to hold SNX.
According to statements, trading on Synthetix.Exchange offers several advantages over centralized exchanges and order book-based DEXs. The absence of an order book means all transactions are executed against the contract in what is known as a P2C (peer-to-contract) transaction. Assets are assigned an exchange rate via price feeds provided by an oracle, and can be converted using the Synthetix.Exchange dApp. This provides infinite liquidity up to the total collateral amount in the system, zero slippage, and permissionless on-chain transactions.
sUSD is also characterized as a cryptocurrency launched by the platform for these purposes.
sUSD Coin Review
sUSD particularly stands out and gains trust due to the platform behind it. Furthermore, sUSD coin being pegged to the dollar is another point that attracts investors’ attention. Investors do not expect large price increases in sUSD because it is dollar-backed, but it is also seen as an investment option.
According to CoinMarketCap data, sUSD Coin ranks 225th in market capitalization with $142,106,451. Additionally, at the time of writing, sUSD Coin was trading at $0.9961 with a 24-hour trading volume of $22,695,514 USD. Also, sUSD reached a low of $0.3876 on April 14, 2019, and set an all-time high of $2.36 on October 4, 2019.
Additionally, there are currently 142,399,574 sUSD in circulation, and the total supply of sUSD Coin is also stated to be 142,399,574 sUSD.
How to Buy sUSD Coin?
sUSD Coin can be purchased through Binance, the world’s largest cryptocurrency exchange by trading volume. It is worth noting that sUSD Coin was listed in the Binance Innovation Zone on December 4, 2020.
