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Synthetix
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Synthetix stablecoins are algorithmic and backed by endogenous collateral. They are issued and managed by Synthetix, a permissionless synthetic assets / derivatives protocol.
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They are overcollateralized by the protocol’s native token, SNX, and can be minted/borrowed by staking SNX at a collateralization ratio (CR) of 500%. When CR drops to 160%, liquidation of SNX collateral is initiated by transferring the debt to other SNX stakers.
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These stablecoins cannot be redeemed for underlying collateral. Holders are rely solely on on-chain liquidity pools to exit from Synthetix assets to non-Synthetix assets.
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Bluechip does not consider SNX as acceptable collateral while determining the safety of Synthetix stablecoins. The Terra-Luna collapse illustrates that using native tokens as collateral for stablecoins can lead to rapid death spirals.