420, Stake It
Welcome to Your Final Burn
The 420 Pool is now open to all SNX stakers after successfully attracting over 80 million SNX during the whitelisting period. This is your chance to deposit your staked SNX, erase your debt, and never worry about liquidations again.
If you've been waiting for a reason to stake SNX or looking for a way out of the complexities of managing debt and c-ratios, SIP-420 delivers a better way forward. Existing stakers, begin your burn now on the 420 Site, or read the Migration Guide.
Why 420?
Since its inception, Synthetix has been one of the most innovative staking protocols in DeFi. Stakers fueled deep liquidity for derivatives markets, but as the ecosystem evolved, SNX staking remained stagnant. With SNX inflation officially ended, the staking mechanism needed an engine to keep up with the protocol's growth.
Staking in its current form required some adjustments:
- Debt management: Users minting sUSD were required to actively manage their debt—a complex process, which could result in losses due to excessive risk taking.
- Liquidation risk: Failure to properly maintain debt could lead to liquidations—a dreaded consequence for the liquidated staker, pushing debt responsibility to the remaining SNX stakers.
- Inefficient capital allocation: High collateralization ratios limited capital efficiency, restricting the growth of sUSD liquidity. A reliance on individual stakers to deploy capital required incentives to build liquidity for new products or partnerships.
SIP-420 fixes this by shifting sUSD minting and debt management to the protocol itself, turning SNX staking into a yield-generating, risk-mitigated, sustainable liquidity system.
Benefits for Stakers
Debt Burn: The Debt Jubilee
Every SNX staker who migrates to the 420 Pool will have their debt forgiven over a 12-month period. The debt burns linearly—meaning 50% after six months and full relief after one year.
Leaving early? The Debt Jubilee includes an exit penalty, but you'll always pay back less than the original debt you entered with.
A Simpler Staking Experience
No more manually managing debt or worrying about maintaining a healthy collateralization ratio. The protocol takes care of everything, while still generating returns for SNX holders.
No Liquidation Risk
Once you're in the 420 Pool, your SNX is safe from liquidation. Unlike solo staking, where you’re constantly managing risk, this pool ensures your SNX remains staked without the threat of being wiped out.
Yield Generation for Stakers
With sUSD now actively managed by the protocol, SNX stakers can benefit from:
- Yield from external strategies like Ethena, Aave, and Morpho.
- Revenue from perps liquidity provisioning to deepen onchain markets.
- Potential future SNX buybacks and incentives based on protocol performance.
Benefits for the Protocol
A More Efficient sUSD Liquidity System
With the protocol managing sUSD issuance, liquidity can be strategically allocated across Curve pools, perps liquidity, and other DeFi integrations—strengthening the peg and improving sUSD accessibility.
Higher Capital Efficiency
By maintaining a 200% collateralization ratio (instead of 500%), the protocol can mint 2.5x more sUSD per SNX staked, significantly increasing available liquidity while reducing capital inefficiencies.
Stronger Market Depth for Perps & New Products
Instead of waiting for liquidity to arrive organically, Synthetix can inject minted sUSD into key products—solving cold start problems for perps markets, leveraged tokens, and future vaults.
Frequently Asked Questions About the Debt Jubilee
Am I locked in the 420 Pool?
No, but there is a 7-day cooldown period to unstake your SNX.
How does the Debt Jubilee work?
Debt is forgiven linearly over 12 months. If you exit early, you’ll receive partial relief based on how long you've remained in the pool.
Can I exit during the Debt Jubilee?
Yes, but you must repay any remaining debt after applying your relief (including the early exit penalty).
What if I don’t have any debt?
Phase 2 will introduce SNX incentives for new stakers. Hold tight for an upcoming announcement.
Can I be liquidated?
No—once you migrate to the 420 Pool, your SNX is protected from liquidation.
What’s Next?
Phase 2: New Staker Incentives
The next phase will introduce staking incentives for SNX holders who aren’t currently staking. If you hold SNX but never staked, a special incentive program will be launching soon.
Phase 3: Buy & Stake
Want to stake but don’t own SNX? The upcoming Buy & Stake feature will allow users to bridge and swap from most EVM chains directly into the 420 Pool.
Join the Community
The 420 Pool is designed to reignite SNX staking and make sUSD the most liquid, decentralized stablecoin in DeFi. Whether you're an existing staker looking to erase your debt or a new participant eager to earn yield on your SNX, this is the time to get involved.
Join the conversation: discord.gg/synthetix
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