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
Sonic Labs Officially Launches on Infinex, Marking the Collaboration of DeFi Legends Kain Warwick (Synthetix) and Andre Cronje
Sonic Brings Speed, Infinex Optimizes Experience, Creates Deep Liquidity and Smooth UX. Now You Can Buy, Deposit, Store Sonic Assets (including $SHADOW), Convert from Any Chain, and Deploy Vaults on Sonic. Ready to Experience Now! 🚀 $S
🍿 #S Andre Cronje stated that Sonic plans to launch a cryptocurrency exchange within a year to "compete with Coinbase and Binance". They also plan to launch a "smart wallet".
Andre Cronje also declared that he will not cooperate with any venture capital funds. He believes that major market makers, large funds, or venture capitalists lack loyalty.
🚀 Data doesn't lie about the ecosystem $S Sonic @SonicLabs: ✅ TVL: Over $800 million in just 3 months ✅ Total transactions: Over 43 million ✅ Smart contracts created: Over 90,000 ✅ Wallets: Over 1 million wallets
Sonic is making waves! 🌊🔥 Be a part of the revolution. $S
Sonic is a Layer-1 blockchain developed from Fantom, focusing on speed, incentives, and strong infrastructure. Launched on August 1, 2024, it brings a new network architecture, revamped tokenomics model, and many incentives for developers.
MAIN ADVANTAGES:
1. High performance: - Processing 10,000 transactions/second - Transaction completion time under 1 second - Node operating costs reduced by 66% - Node synchronization 10 times faster
2. Technical features: - Fully compatible with EVM - Uses Proof-of-Stake consensus mechanism - Flexible DAG (Directed Acyclic Graph) structure - Efficient data storage system with live pruning mechanism
3. Smart tokenomics: - Token S with an initial total supply of 3.175 billion - Deflationary mechanism through token burning - Fee Monetization program returns 90% of fees to developers - Points and Gems system incentivizing users and developers
CHALLENGES: - Competition from Ethereum's Layer-2 solutions - Low number of validators (41 nodes) - Limited migration of DApps from Fantom - Need to build a stronger application ecosystem
Overall, Sonic is a promising blockchain with many technical improvements and smart incentive mechanisms. However, future success will depend on its ability to attract a developer community and users in a fiercely competitive market. $S
Don't worry about the short-term price of $S – #Sonic has built a self-sustaining growth machine, and that is the only thing you need to pay attention to.
Here's how it operates 👇
🎁 Attracting liquidity: Sonic rolls out massive incentives like airdrops worth $190 million and high yields, attracting users and developers to bring capital and liquidity into the blockchain.
⚡ Driving activity: As liquidity and incentives increase, the number of DeFi transactions also explodes, pushing asset prices higher and drawing in new users seeking yields and investment opportunities.
🙋 Rewarding early users: Initial participants receive generous rewards from staking, providing liquidity, and engaging in ecosystem activities, creating an incentive for them to reinvest or hold tokens, helping stabilize and grow the ecosystem.
🤓 Incentives for developers: Sonic's unique FeeM model returns 90% of gas fees to developers, encouraging the creation of high-usage decentralized applications (dApps), which helps increase transaction volume and platform adoption.
♻️ Reinvesting and expanding: Continuous development attracts more liquidity and developers, creating a reinforcing loop that helps the ecosystem expand sustainably.
🧠 Informed user community (that’s us 🫡): As @AndreCronjeTech mentioned in a recent interview, unlike previous DeFi crazes that attracted uninformed investors, Sonic is aiming for a community that understands the risks and how the system operates.
👉 In summary: Sonic leverages attractive yields, incentives for developers, and substantial rewards to drive growth.
Everything that has happened on Sonic in the last 24 hours:
1. AAVE has officially launched on Sonic 2. Trust Wallet has supported Sonic 3. Shadow received 27.3K $S through FeeM 4. Eggs are now available on Silo 5. Over 100 million USD has been transferred to Sonic via Rhino 6. You can use Llamaswap to trade on Sonic 7. You can bridge (transfer tokens) to Sonic using Jumper 8. Silo has introduced the points dashboard #Sonic #DeFi #Crypto $S
The massive migration of funds is pouring into SONIC Chain $S .
Top 1 Defi projects currently like $AAVE, $PENDLE, etc. will all appear on S in the near future, directly injecting DeFi liquidity. S is becoming a true black hole, attracting funds from other chains like SOLANA, BASE, BSC,... you can observe the image below.
The trading volume is skyrocketing, and the attention of the entire market is focused here.
HST is developing organically under the guidance of Andre.
Sonic reaches $1B TVL in 66 days: Surpassing VC-backed L1s
#Sonic L1 $S has officially entered the Layer-1 race by achieving $1B TVL in just 66 days, while giants like Sui and Aptos, heavily invested by VCs, took 505 and 709 days to reach this milestone. This is not just a small victory, but also proves that focusing on a specific area can create breakthrough growth.
The VC Money Paradox
Aptos and Sui have raised over $300M each, but Sonic – essentially an upgrade from Fantom – has outperformed them despite receiving almost no significant funding from VCs. In fact, most of Sonic's “capital” comes from reallocating resources and incentives from Fantom, rather than massive funding rounds.
Not just a migration from Fantom
The argument that Sonic is merely “migrating from Fantom” has been refuted by the numbers. When Sonic launched in December 2024, Fantom's TVL was still around ~$180M. Currently, Fantom retains $160M TVL, while Sonic surpasses $1B. This means over $800M in new capital has flowed into Sonic, rather than just migrating from Fantom.
Native DeFi ecosystem & strategy to attract developers
Sonic has implemented a Fee Monetization program, allowing developers to receive up to 90% of the transaction fees from their applications, creating a sustainable revenue model for builders. No other L1 has such a strong profit-sharing mechanism.
The team behind Sonic, with Andre Cronje serving as CTO, has focused on the features that DeFi users and developers truly need.
There will be even more exciting things next week! 🚀
For those who may not know, AAVE is the "engine" of DeFi – a colossal liquidity machine that enhances trading volume and network effects for any blockchain. This is also the most important factor in validating the legitimacy and strength of a blockchain ecosystem.
From the following data, it can be seen that @SonicLabs $S claims to achieve a theoretical speed of up to 370,000 TPS, far exceeding the figure of 10,000 TPS when launched in January 2025, making it one of the fastest blockchains, competing with ICP, Solana, and Arbitrum.
This could pave the way for real-time applications such as gaming or data processing, although actual performance has yet to be proven. This also reflects the trend in 2025 focusing on scalability for Web3 and AI applications. #Soniclabs $S
Sonic Labs: The first blockchain to share transaction fees with developers? $S
At first, I thought #Sonic was just a regular L1 blockchain, but after researching thoroughly, I was truly surprised.
Unlike other platforms that 'squeeze' developers, Sonic allows them to keep up to 90% of the transaction fees generated by their applications.
Highlight: Fee Monetization (FeeM) – Sharing transaction fees like YouTube
This idea is inspired by the Web2 model, similar to how YouTube shares advertising revenue with content creators. • Instead of keeping all the fees or burning tokens to beautify the numbers, Sonic genuinely shares with the builders of the ecosystem. • This project truly supports developers, just like Andre Cronje has always supported builders.
Operational mechanism: No participation – No fee sharing
Not every application can automatically participate in FeeM. Projects must: • Register and be approved to share fees. • If they do not participate in the program, 50% of the fees will be burned, 45% for validators, and 5% into the ecosystem fund. • If participating in FeeM, 90% of the fees will belong to the developers and 10% for validators, with no fees being burned.
What about Sonic's scalability?
Sonic has extremely ambitious goals: • To process over 900 million transactions per day. • Even if only achieving 10 million transactions/day, the system could still generate 36.5 million USD/year, with 16.4 million USD belonging to developers.
This incentive mechanism is more sustainable compared to many other L1s that rely on issuing inflationary tokens to keep devs.
Anti-gas fee fraud: Accurate calculations down to every opcode
Sonic tracks gas consumption right at the virtual machine (VM) level: • Is this the future of blockchain?