Sonic: The Rising Star Project of Layer 1 Track

A certain high-performance Layer-1 project has reached a total locked value of nearly 1 billion USD in just 4 months. It not only perfectly supports the Ethereum Virtual Machine, but also offers an innovative fee-sharing mechanism. The ongoing large-scale token airdrop plan and stablecoin strategies with up to 150% annualized returns provide users with a rare "yield + airdrop" dual opportunity.

This article will analyze the technical advantages of the project and how to participate in high-yield stablecoin strategies through simple operations.

1. Project Background

The project was founded by Michael Kong in 2018 with the aim of overcoming the scalability bottlenecks of Ethereum. After a series of developments, it was upgraded to the current high-performance Layer-1 network with the assistance of Andre Cronje.

2. Technical Highlights

The project utilizes a customized tech stack, including a dedicated virtual machine, database, and consensus mechanism, fully compatible with the Ethereum Virtual Machine. As a performance-leading EVM-compatible blockchain, it supports over 10,000 TPS with a confirmation time of less than 1 second, making it highly suitable for high-frequency trading scenarios such as DeFi and Web3 gaming.

The innovative Fee Monetization (FeeM) mechanism allows developers to receive 90% of the network fees generated by their applications, avoiding the high costs and complex interoperability issues of "application chains."

The project supports native account abstraction (AA), greatly enhancing the user interaction experience. The fee subsidy mechanism allows the network or protocol to pay transaction fees on behalf of users, lowering the participation threshold. The dynamic fee feature enables applications to flexibly adjust user fees to meet different scenario requirements.

3. Airdrop Event

The project has launched a points program lasting over 1 year, involving a large-scale token airdrop, aimed at encouraging user and developer participation to drive ecosystem growth.

Users can earn passive points by holding or using specific assets (such as scUSD, USDC.e, scETH). Active points are obtained through on-chain interactions such as trading, staking, or providing liquidity. At the end of each quarter, points can be redeemed for project tokens.

Developers compete for airdrop shares through specific mechanisms, and the tokens obtained can be distributed to the users of the corresponding applications.

Of the airdrop tokens received by users, 25% will be unlocked immediately, while the remaining 75% will be released linearly in the form of NFTs over 270 days. The airdrop is expected to take place in June, at which point the NFTs holding the 75% of unlocked tokens may be sold at a low price, possibly creating a buying opportunity.

Note for participating in points acquisition: The liquidity pool requires both tokens to be specified assets in order to calculate passive points; certain assets like WETH and USDT can only earn active points and do not count towards passive points.

4. Interaction Strategy

High-Yield Stablecoin Strategy

4.1 Provide Liquidity

Providing liquidity for specific stablecoin pairs on a certain decentralized exchange platform can not only yield high APR returns (16.7% and 22.27% respectively), but also offers multiple points rewards and potential airdrop opportunities.

Operation steps:

1. Deposit USDC on a lending platform to obtain bUSDC
2. Deposit USDC in another protocol to obtain scUSDC
3. Stake scUSDC to earn stkscUSD
4. Re-stake stkscUSD to obtain wstkscUSD
5. Add liquidity on specific trading platforms

Note: Fund withdrawals may take 5-10 days, while small amounts can be quickly exited at a lower cost in the secondary market.

4.2 Participate in governance voting to earn rewards

Principle: Holders of wstkscUSD of a certain protocol can receive the project's earnings on the network, while holders of veUSD (locked scUSDC) can receive the right to distribute mainnet earnings. The project team guides the distribution of earnings by rewarding veUSD holders for voting.

Operation steps:

1. Stake USDC as stkscUSD
2. Lock stkscUSD (the longer the lock time, the higher the voting weight)
3. Find and participate in voting on specific governance platforms.
4. Weekly voting, with a current annualized yield of up to 150%

Automated tools can be used to simplify the voting process, requiring only to regularly claim rewards.

Liquidity provision and governance voting strategies require a choice between one or the other. The liquidity strategy is more flexible, while the governance voting strategy currently has fewer participants, which may result in higher capital efficiency. Users can decide the allocation ratio based on their preferences.

Finally, to quote a well-known figure in the industry as a conclusion: the token of this project is not the most important, what really matters is its ecosystem and user base.