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A Synthetic Stablecoin Asset on Synthetix.
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sUSD is a synthetic stablecoin asset on the Synthetix platform, whose value tracks that of the US Dollar.
Users can mint sUSD tokens by staking SNX tokens in the staking smart contract. The sUSD token can then be used on the Synthetix platform for trading against other synthetic assets.
In the Synthetix protocol, sUSD acts as a "debt obligation". When users mint sUSD, they are assigned a share of the overall debt pool of all synthetic assets minted. Thus, the demand to mint and issue more sUSD depends on the demand for minting and owning synthetic assets on the Synthetix platform.
The value of the sUSD token remains stable as users can arbitrage their sUSD tokens for other synthetic assets in the debt pool. For instance, when the price of the sUSD token falls to 0.98 USD on secondary markets, a user can buy 100 sUSD with 98 USD, and redeem the sUSD tokens for 100 USD worth of sBTC, or any other synthetic assets on Synthetix.