The star project in the Layer 1 track, @SonicLabs, has approached nearly $1 billion TVL within 4 months. Not only is it perfectly compatible with EVM, but it also provides a groundbreaking fee-sharing mechanism.

The ongoing 200 million $S token airdrop plan and stablecoin with a maximum annual yield of 150% provide a rare "yield + airdrop" win-win opportunity.

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 Ethereum's scalability bottleneck. After ups and downs, it was upgraded to the current high-performance Layer-1 Sonic with the help of Andre Cronje.

2/ Technical Highlights:

Sonic's customized tech stack (dedicated virtual machine, database, consensus mechanism) is fully compatible with EVM. As the EVM blockchain with the best performance, Sonic supports over 10,000 TPS, with confirmation time <1 second, perfectly adapting to high-frequency scenarios in DeFi and Web3 games.

The Fee Monetization (FeeM) mechanism disrupts tradition, allowing developers to earn 90% of the network fees generated by applications, avoiding the high costs and complex interoperability issues of "application chains."

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

3/Airdrop Event:

Sonic launches a points program involving 200 million $S airdrop, lasting over a year, aimed at incentivizing users and developers to drive ecosystem growth.

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

Developers compete for airdrop shares through Sonic Gems; GEMS can be exchanged for $S and distributed to corresponding dapp users.

25% of the tokens earned from user points are unlocked immediately, and the remaining 75% are released linearly over 270 days in NFT form. The airdrop is expected to take place in June, at which time NFTs holding 75% of the tokens may be sold at a low price, potentially providing an opportunity to bottom-fish $S.

Note on points acquisition: Liquidity pools need both tokens to be whitelisted assets (such as S-USDC), otherwise no points will be counted; WETH, USDT, etc. only earn Activity Points, not Passive Points.

4/ Interaction Strategy: High-Yield Stablecoin Strategy

4.1 Providing Liquidity:

Providing bUSDC.e-20/wstkscUSD or aSonUSDC/wstkscUSD on @SwapXfi not only offers high APR yields (16.7% and 22.27% respectively) but also grants 12x sonic points, 1.5x Rings points, and SwapX's airdrop.

✅ Specific Operation:

First, find the lending pair S/USDC with id (the number in the first column) 20 on @SiloFinance, deposit USDC to get bUSDC, then deposit USDC into @Rings_Protocol to get scUSDC, stake scUSDC to get stkscUSD, and then stake the obtained stkscUSD again to get wstkscUSD. Finally, add liquidity on SwapX.

Note: wstkscUSD turns into stkscusd immediately, stkscUSD turns into scUSD in 5 days, and scUSD turns into USDC in 5 days. However, wstkscUSD can also be directly exchanged for USDC on the secondary market on Shadow. In other words, large funds need 10 days to exit, while small funds can exit directly on the secondary market with low slippage.

Another pool aSonUSDC allows you to earn by depositing USDC into Aave, and the remaining steps are the same as above.

4.2 Voting for Bribery:

wstkscUSD on @Rings_Protocol will earn protocol earnings on Sonic, while veUSD (locked scUSDC) can earn distributive earnings from the mainnet (scUSD is obtained 1:1 from USDC, and there will be corresponding USDC on the mainnet as support; these USDC will be used for DeFi operations on the mainnet through Veda to generate profits).

The project party will bribe veUSD holders to vote for the corresponding protocol, thus allowing the protocol to obtain more profits.

✅ Specific Operation:

First, stake USDC on Rings Protocol to become stkscUSD (refer to 4.1 Providing Liquidity), then lock stkscUSD; the duration can be set according to your own situation; the longer the time, the higher the voting weight.

Next, go to the dapp @Paladin_vote, find Quest, and then locate the corresponding scUSD to enter the bribery page (link: quest.paladin.vote/#/scusd).

Click to vote and you will be redirected to the voting page of Rings protocol, select the project with the highest yield you see on Paladin, and allocate all your votes to it.

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

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

Liquidity and bribery strategies can only choose one. Liquidity can be exited at any time, while bribery requires a lock-up period of at least a few weeks and up to one year. Currently, fewer people are playing bribery, resulting in higher capital efficiency. Friends can decide their allocation ratio based on their preferences.

Let's conclude with AC's words: The token of Sonic is not important; what matters is the ecosystem of Sonic and its users.

If you find this tweet helpful, I hope to gain your attention and likes ❤️