Author: Magpie Protocol
Compiled by: TechFlow
DeFi (decentralized finance) is growing at a rapid pace, and Sonic is moving at an equally impressive pace. By building an ecosystem that both benefits the community and supports developers, Sonic has become a hotbed for innovation to flourish, giving protocols like Magpie the opportunity to spread their wings.
Sonic has all the ingredients for success: speed, efficiency, strong throughput, security, scalability, and an ecosystem full of potential. Not only that, it also provides a very attractive incentive mechanism for the community and developers.
Next, let's break down why Sonic is the perfect place for the Magpie project to grow and evolve.
First, let me briefly introduce Sonic. Its mainnet was officially launched in mid-December last year and has quickly become popular since then. Its TVL (Total Value Locked) has increased by more than 700% month-on-month, and its trading volume has also shown a continuous upward trend. In such an environment, protocols such as Magpie naturally want to join this vibrant ecosystem and grow together.
@DefiLlama: “We are currently tracking 65 decentralized applications (dApps) on the SonicLabs platform.
Since the beginning of this year, Sonic’s TVL (Total Value Locked) has increased 13 times, from $27.14 million to $357.65 million. This significant growth demonstrates the rapid expansion and strong development potential of the platform’s ecosystem.”
Let's quickly break down the Sonic's technical specs:
<1 second confirmation time : Almost instant transaction confirmation can be achieved, and the speed is close to the limit.
10,000 TPS (10,000 transactions per second) : Demonstrates strong scalability and has huge room for future growth.
Gas fee (blockchain transaction fee) less than $0.01 : extremely low cost and very economical.
Sonic is already at the forefront when it comes to speed and efficiency. Next, let’s explore why it’s exciting to build projects on Sonic.
Advantages for Developers
Sonic's Fee Monetization Program is a highlight and an unprecedented innovation. The program allows projects built on Sonic (such as Magpie) to receive up to 90% of the gas fee share of on-chain applications.
We plan to use this mechanism to reduce transaction costs and improve user experience by distributing part of the recovered gas fees to users. In this way, we hope to create a more efficient and attractive platform for traders on Sonic.
Incentives for the community
Sonic has designed a simple and efficient incentive mechanism for $S tokens:
Users earn points by participating in the ecosystem, and these points can be converted into $S tokens.
Hodlers.
If you are a coin holder, you can earn passive points by holding whitelisted assets directly in a Web3 wallet such as Rabby or MetaMask.
Liquidity Providers (Farmers)
If you prefer liquidity mining, you can deploy whitelisted assets into participating applications and earn active points. These active points are worth twice as much as passive points.
Protocol Rewards
Sonic Points is a community-centric reward system that allows dApps and protocols to design unique points distribution mechanisms for their users to encourage users to use their protocols or participate in community activities. These points can later be exchanged for $S tokens to directly reward users for their participation.
If you are looking for passive income, you can get $scUSD, $scETH or $stS from partners @Rings_Protocol and @beets_fi to hold. If you need to borrow, @SiloFinance provides related services and you can also earn points through borrowing.
Whether you’re hoarding or trading, participating in the Sonic ecosystem is rewarding, and to make the process even more convenient, when using Magpie, you can directly convert assets into these tokens, or even mint them, while earning points and stacking rewards through Sonic, Rings, Magpie, and other participants.
Although rewards may require a certain lock-up period, this incentive mechanism is very attractive. And don’t forget, the greater the trading volume, the more “gems” we get, and these gems can be used to provide more incentives to our community and promote a virtuous cycle of the ecosystem.
Core Team
@AndreCronjeTech is the founder of Sonic, which is one of the reasons why Sonic is worth looking at. He is not only the founder of @yearnfi , but also co-developed the innovative ve(3,3) token economic model. Therefore, when he focuses on a project, it always attracts our attention.
His team members include @michaelfkong , @_lfausto , @AVKhatibi , and @MainnetMari . They are innovative, generous, and open, and are committed to promoting growth and cooperation in the DeFi ecosystem, bringing more possibilities to the industry.
Our favorite eco-projects
We are confident in Sonic’s technology, team, and ecosystem, and we would like to share some of our favorite protocol and community updates with you right now.
Metropolis
Metropolis is a rapidly emerging decentralized exchange (DEX). Their liquidity and trading volume continue to grow, and they recently launched their own token $METRO (available on Magpie). One of the highlights of Metropolis is its Dynamic Liquidity Market Maker (DLMM), a tool that allows users to customize liquidity distribution strategies, whether it is a bell curve, spot strategy, buy and sell order style, or fixed investment strategy (DCA), which can be flexibly configured. If you are an art lover, their social media posts often come with beautiful works of art. Whether it is out of love for art or the need for liquidity control, Metropolis is an excellent platform worth paying attention to.
Rings
If you hold $USDC, $ETH or $USDT, you might want to try the yield-based stablecoins and ETH derivatives provided by Rings. These tools will not only keep your assets from being idle, but also help you realize asset appreciation through staking or other means.
SwapX
SwapX is the leading decentralized exchange (DEX) in the Sonic ecosystem. The key to its success is that it was the first to adopt V4 technology. This technology significantly improves capital efficiency, enabling traders to earn higher returns, while helping liquidity providers (LPs) effectively reduce impermanent loss (IL) through centralized liquidity and automated position management.
In addition, SwapX has developed and audited a highly anticipated DeFi plugin specifically for managing the liquidity of Liquid Staking Tokens (LST), which will be released exclusively on Sonic. With its large community and ve(3,3) token economic model, SwapX is gradually becoming an important player in the Sonic ecosystem.
Beets
Beets is the flagship LST hub on Sonic. Users can convert $S to $stS and earn income in an automatically compounding pool while maintaining asset liquidity. More conveniently, the Magpie platform supports direct minting or exchange into $stS, making the operation simpler and more efficient.
WAGMI & Hey Anon
Next up is WAGMI and HeyAnon, two projects crafted by @danielesesta .
WAGMI : Known for its innovative GMI pool, a multi-layered pool structure that includes multiple sub-pools. The WAGMI ecosystem superimposes a multi-layered fee structure through this "pool within a pool" design. If you are looking for portfolio diversification and maximum returns, WAGMI is an option worth paying attention to.
HeyAnon : This is an upcoming AI agent that allows users to complete DeFi operations through conversations. For example, you can let HeyAnon help you swap ETH from Arbitrum to $scUSD on Sonic. As its developers said: "Agents are the new wallets. In Beta testing, you will see that it provides security through keys, integrates all wallet information, and can perform tasks and provide conversational user interfaces. This is the trend of the future, a tool that never rests and completes tasks for you anytime, anywhere."
Equalizer
Equalizer focuses on providing "real returns" to token holders. Its unique perpetual model balances the rewards of token holders and liquidity providers while focusing on low slippage trading. In addition, they guide liquidity to the most traded pairs through community voting, ensuring that the most popular trading pairs enjoy better spreads and higher liquidity efficiency.
SpookySwap
SpookySwap is a decentralized exchange (DEX) known for its low transaction fees, powerful functions and ease of use. Their native token $BOO also provides users with rich rights, including the right to vote in platform governance proposals and the opportunity to share exchange fee income.
Shadow
Shadow is a protocol layer and trading platform based on centralized liquidity. Users can earn fee sharing and additional rewards (i.e. bribe rewards) by voting on token emissions. The platform supports flexible fee distribution, double emission mechanism and other functions, and is the representative of the next generation of DeFi innovation. If you are looking for a trading platform based on the x(3,3) model, Shadow is worth a try.
Silo
Silo provides an isolated lending market where users can earn real returns and market income by staking $SILO or holding $spSILO. In addition, users can earn Sonic points for every $1 deposited for lending, and borrowers can also receive half of the reward, and the specific reward multiplier depends on the type of token borrowed.
The Sonic platform is just like its name, fast and efficient, while committed to creating more value for users.
