Synthetix Concludes Legacy SNX Staking Liquidation
- Synthetix liquidates legacy SNX staking, transitioning to new model.
- SNX priced at 0.746 USDT, dropping 2.61%.
- New staking pool supports future product upgrades.
Synthetix protocol has liquidated its legacy SNX staking positions on April 27, 2025, aligning with proposal SCCP-403’s directives.
The liquidation of Synthetix’s legacy SNX staking is crucial, as it sets the protocol for future enhancements, although immediate market responses remain mild.
Transitioning to a New Staking Model
Synthetix, led by founder Kain Warwick, liquidated legacy SNX staking positions as part of its upgrade to a new system. The Synthetix DAO executed this transition under the guidance of SCCP-403. Legacy stakers are advised to recover positions by following instructed steps.
“As part of Synthetix’s transition to the new 420 staking pool, legacy SNX staking positions have now been liquidated as laid out in SCCP-403, but most positions can be recovered. If you’re a legacy staker who has not yet migrated to the 420 Pool, please follow the steps below as soon as possible.” — Kain Warwick, Founder, Synthetix
With the new 420 staking pool, users with collateralization ratios above 160% can recover positions, while those below are permanently liquidated. This change introduces a 12-month debt exemption period alongside revised staking requirements.
SNX token witnessed a price of 0.746 USDT, marking a 2.61% decrement post-migration. The immediate financial backlash appears limited, contrasting with historical precedence where protocol overhauls induced market uncertainty.
Future Enhancements and Market Outlook
This transition could enhance Synthetix’s capital efficiency and pave the way for upgrades like Perps v4 and automated vaults. The community has been directed to official channels for migration updates and forthcoming staking rewards.
Synthetix’s strategic migration aligns with historical trends where successful protocol upgrades foster improved adoption. On-chain data shows positive DeFi momentum, with Total Value Locked (TVL) exceeding $100 billion, a 6% rise, reflecting supportive market conditions. This underscores potential long-term advantages contingent on effective execution and adoption.
For a broader perspective on recent Synthetix developments, you can refer to the Weekly Recap of SNX Weave and Updates.
