George Town, Cayman Islands, 14 January 2025, Pakinomist

Sonic Labs announced the launch of its points program today, an innovative incentive framework designed to reward users and stimulate the growth of DeFi on Sonic.

Through a multi-layered approach that combines passive asset holding, active liquidity utilization, and developer-focused “Sonic Gems,” the program will distribute around 200 million S tokens as part of the S airdrop.

This initiative positions Sonic as the leading hub for DeFi enthusiasts and newcomers alike, offering an ecosystem where users can enhance the utility and capabilities of their assets.

Three types of points

The Sonic Points program gives users several ways to collect points:

1. Passive Points

Holding whitelisted assets in a Web3 wallet such as Rabby or MetaMask or a hardware wallet allows users to accumulate passive points, while assets stored on centralized exchanges are excluded.

2. Activity points

If users choose to deploy whitelisted assets as liquidity on participating apps, such as DEXs, lending protocols or other apps, they can earn activity points in addition to their passive points. This approach encourages users who actively contribute to the network’s liquidity.

3. App Points (Sonic Gems)

In addition to the user-focused part of the airdrop, Sonic Labs has designed a developer-focused part where participating apps compete for an allotment known as Sonic Gems. Apps can redeem these gems for S tokens, which they can distribute to their users as rewards through independent points programs.

By controlling the token distribution, apps can design customized points programs by incorporating weighting factors based on the total liquidity a user provides or the duration the capital is invested. The competitive aspect of Sonic Gems allows users to strategically select apps that demonstrate strong Gems earning potential and offer well-structured points programs that optimize opportunities for capital growth within the ecosystem.

Whitelisted assets

To earn points, users must choose from Sonic’s initial list of whitelisted assets, which range from scUSD, USDC.e, and scETH, to other select tokens. In particular, the assets have increased the multipliers in the initial stages of the points program to encourage rapid adoption.

Additional assets may be whitelisted in the future, ensuring the continued development of the ecosystem.

Rings: Infusing apps on Sonic with liquidity

An important element of Sonic’s liquidity strategy is Rings, a yield-bearing stablecoin protocol. By depositing stablecoins or ETH-based tokens, users can mint scUSD or scETH (both whitelisted assets).

While these tokens are staked on Sonic, the collateral used to mint them is sent to vaults operated by Veda, where they generate dividends. The generated dividend is periodically converted to scUSD and fed back to Sonic, where it is dispersed among DeFi apps as liquidity infusions.

This cyclical flow not only amplifies the earning potential for users, but also provides DeFi apps on Sonic with a steady supply of liquidity, ensuring deep liquidity pools, more robust lending markets, and an overall healthier DeFi landscape.

Rings is a third-party project and not affiliated with Sonic Labs. Users can learn more about Ringe here.

Airdrop Dashboard: All-in-One Hub

The Sonic points dashboard is a comprehensive platform where users can:

• Check their earned points
• Check out the list of participating apps
• Get whitelisted assets through a simple interface
• Generate a referral code and share it with friends to get extra points
• View a leaderboard that shows the points and gems earned by users and apps

A new approach to DeFi

The Sonic Points program underscores Sonic Labs’ commitment to providing users and developers with a dynamic array of options. Through passive holding, active liquidity injection and Sonic Gems, participants can access innovative reward mechanisms while helping to drive deeper liquidity and wider DeFi adoption on the platform.

Overall, Sonic’s multi-layered incentive system and high-performance infrastructure set a new standard and position the chain as a leading DeFi hub.

About Sonic

Sonic is a high-performance EVM L1 platform that offers developers attractive incentives and powerful infrastructure for DeFi. The chain provides 10,000 TPS, sub-second confirmation times and a secure gateway to Ethereum for improved liquidity and asset security.

ContactSonic Labspress@soniclabs.com