Sonic, a star project in the Layer 1 track, has achieved a TVL of nearly 1 billion US dollars in 4 months. It is not only perfectly compatible with EVM, but also provides a groundbreaking fee-sharing mechanism.

The ongoing $200 million $S token airdrop plan and the stablecoin annualized return strategy of up to 150% provide a rare win-win opportunity of "return + airdrop".

This article will analyze Sonic's technical advantages and how to obtain high-yield stablecoin strategies through simple operations.

1. Project Background

Sonic (formerly Fantom) was founded by Michael Kong in 2018 with the goal of breaking through the scalability bottleneck of Ethereum. After many twists and turns, it was upgraded to the current Sonic high-performance Layer-1 with the help of Andre Cronje.

2. Technical highlights

Sonic's customized technology stack (dedicated virtual machine, database, consensus mechanism) is fully compatible with EVM. As the best performing EVM blockchain, Sonic supports over 10,000 TPS, with a confirmation time of <1 second, making it a perfect fit for high-frequency scenarios in DeFi and Web3 games.

The Fee Monetization (FeeM) mechanism subverts tradition. Developers can earn 90% of the network fees generated by the application, avoiding the high cost and complex interoperability issues of the "application chain".

Sonic supports native account abstraction (AA) to improve the interactive experience. Fee subsidies allow Sonic or the protocol to pay user transaction fees, lowering the entry threshold and allowing users to experience it without having to prepare $S. Dynamic fees give applications the ability to flexibly adjust user fees, suitable for different scenarios.

3. Airdrop Activities

Sonic launched a points program involving a $200 million airdrop that will last for more than a year, aiming to incentivize users and developers and drive ecosystem growth.

Users can earn Passive Points by holding or using whitelisted assets (such as scUSD, USDC.e, scETH). Activity Points are obtained through on-chain interactions such as trading, staking, or providing liquidity. After each quarter, points can be exchanged for $S tokens.

Developers compete for airdrop shares through Sonic Gems, which can be exchanged for $S and distributed to users of the corresponding dapp.

25% of the tokens obtained by users’ points will be unlocked immediately, and the remaining 75% will be released linearly in the form of NFTs every 270 days. The airdrop is expected to take place in June, when the NFTs with 75% of the tokens may be sold at a low price, and there may be an opportunity to buy $S at a low price.

Things to note when earning points: The liquidity pool requires that both tokens are whitelisted assets (such as S-USDC), otherwise no points will be calculated; WETH, USDT, etc. only earn Activity Points, not Passive Points.

4. Interaction Strategy

High-yield stablecoin strategy

4.1 Providing Liquidity

@SwapXfi offers bUSDC.e-20/wstkscUSD or aSonUSDC/wstkscUSD. These two pools not only have high APR returns (16.7% and 22.27% respectively), but also 12x sonic points, 1.5x Rings points and SwapX airdrops.

Briefly describe the steps:

First, find the S/USDC loan pair with id 20 on @SiloFinance. Deposit USDC to get bUSDC. Then deposit USDC on @Rings_Protocol to get scUSDC. Then pledge scUSDC to get stkscUSD. Then pledge the stkscUSD again to get wstkscUSD. Finally, add liquidity on SwapX.

Note: wstkscUSD becomes stkscusd and exits immediately, stkscUSD takes 5 days to become scUSD, and scUSD takes 5 days to become USDC. However, wstkscUSD can also be directly exchanged for USDC on the shadow secondary level. That is, it takes 10 days for large funds to exit, and small funds can be directly exited on the secondary level with low wear and tear.

Another pool, aSonUSDC, can be obtained by depositing USDC on aave, and the remaining steps are the same as above.

4.2 Voting for bribes

principle:

wstkscUSD on @Rings_Protocol will obtain the protocol's earnings on sonic, while veUSD (locked scUSDC) can obtain the earnings on the mainnet (scUSD is obtained at a 1:1 ratio with USDC, and the mainnet will have corresponding USDC as support. These USDC will obtain earnings through veda through DeFi operations on the mainnet).

The project will bribe veUSD holders to vote for the corresponding protocol, so that the protocol can gain more benefits.

Specific operations:

First, pledge USDC on Rings Protocol to stkscUSD (refer to 4.1 Providing Liquidity), and then lock stckscUSD. The length of time can be determined according to your own situation. The longer the time, the higher the proportion of voting.

Next, go to @Paladin_vote’s dapp and find Quest. Then find the corresponding scUSD and click on it to see the bribe page (link: https://quest.paladin.vote/#/scusd)

Click on vote and you will be redirected to the voting page of Rings protocol. Select the project with the highest return that you saw on Paladin and assign all your votes to it.

Voting needs to be done once a week, and since there aren’t many people staking now, the APY can be 150%. If you find weekly voting annoying, you can use @TholgarFi to automate the voting process, and you just need to go up and claim your rewards.

By the way, Rings Protocol is made by Paladin and TholgarFi so it is safe.

You can only choose between liquidity and bribery strategies. Liquidity can be withdrawn at any time, while bribery requires a lock-up period of a few weeks or a year. Currently, there are fewer people playing bribery, and the fund efficiency is higher. Friends can decide the allocation ratio according to their own preferences.

Finally, let me end with AC’s words: Sonic’s token is not important, what is important is Sonic’s ecosystem and Sonic’s users.