DeFi’s “Godfather” Launches High Yield Stablecoin: Is Sonic About to Become Luna 2.0?

Recently, Andre Cronje – DeFi legend, father of Fantom and now the man behind the new Layer 1 Sonic – revealed a stablecoin algorithm with the potential to generate extremely high returns, called $MUSD.

Announced yield model:

• > 200% APR when TVL <span million USD

• > 23.5% APR when TVL <span million USD

• > 4.9% APR when TVL > 1 billion USD

But that's not all @YJN21, a DeFi expert at Sonic (who had an AMA with @SonicVietnamGroup last week), has proposed an upgraded version of the model, which significantly increases the yield:

• > 200% APR when TVL <span million USD

• > 95.9% APR when TVL <span million USD

• > 19.18% APR when TVL > 1 billion USD

Why is this noteworthy?

Stablecoin $MUSD is expected to launch in the next 4–5 weeks and is a yield-generating algorithm, similar to Luna's $UST before. But this time, it is led by Andre Cronje - the creator of many DeFi standards like yield aggregators (yearn), lending markets, and many others are widely used today.

If this model is truly sustainable, an APR of nearly 20% at a scale of over $1 billion TVL will be a breakthrough, helping Sonic rise to compete on equal terms with Solana or Base.

But… still need to be careful

If $MUSD is just a sophisticated Ponzi scheme, we may see a second Luna – a fast boom and an even faster crash.

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This event could be a big push to put Sonic on the DeFi map, or a dangerous bubble if risks are not controlled.

The community should keep a close eye on $MUSD when it launches in the coming weeks.

Soonic to the moon 🚀 $S