SIP-323: Adopt the sUSD ticker in Synthetix V3
|Network||Ethereum & Optimism|
This proposal aims to maintain the sUSD ticker for the protocol issued stablecoin through Synthetix V3
The aim of this proposal is to preserve the integrity of the brand by not diminishing an established and highly valued abbreviation, sUSD, which represents the stablecoin issued by the protocol
The plan for Synthetix V3 involves a rebranding of the protocol-issued stablecoin to snxUSD. The rationale behind this plan is to establish a clear distinction between the stablecoins issued by Synthetix V2 and V3, respectively. It is believed that such a rebranding effort will help overcome the negative reputation associated with previous Synthetix stablecoins, which faced scalability limitations and peg stability issues.
However, I believe the community is not in agreement on the new ticker.
Recent events impacting the banking sector and the depegging of major competing stablecoins like USDC and DAI have improved the public image of sUSD. Additionally, I challenge the notion that rebranding to snxUSD will alleviate any lingering negativity associated with sUSD or other aspects of the protocol.
The main limitation of sUSD has always been its reliance on endogenous collateral to back its issuance. While there have been unjustified comparisons drawn between sUSD/SNX and UST/LUNA by some prominent DeFi builders, I concede that however unfounded these comparisons were, they cast an undeserved shadow over potential sUSD use cases.
Recognizing that the primary issue with sUSD stemmed from its endogenous backing, it becomes clear that labeling the next iteration, which will not rely on endogenous collateral, with the prefix "snx" (referring to the ticker of the criticized collateral) is a grave mistake.
I'll conclude by stating that sUSD is a concise and widely recognized ticker that has become a staple in the DeFi space. Its acronym, representing Synthetix (or synthetic) USD, offers a clear description and is easily understandable. Considering that Synthetix V3 will introduce a better method of issuing "Synthetic" assets by leveraging exogenous collateral, it makes perfect sense to maintain the current standard with a lowercase "s" followed by the ticker of the underlying asset
It is important to note that this proposal operates under the assumption that there are no technical obstacles to deploying the sUSD ticker in Synthetix V3. Additionally, it assumes that there are no technical grounds for potential harm to the protocol as a result of adopting sUSD in Synthetix V3.
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