From juicy yield plays to protocol deep dives and degen-friendly explainers, Sonic Sundays is your go-to weekly rundown of everything making noise in the Sonic Ecosystem.
With sonic szn in full swing, it’s time to ramp up your weekly source of ecosystem alpha with the network’s premier newsletter – Sonic Sundays. This week we’ll dive into the thriving network metrics and data points, a protocol spotlight of Pendle, a spicy aUSDC strat of the week, and all the Sonic content you may have missed popping out on socials.
Whether you're here for the alpha, the vibes, or just trying to farm points while pretending to work — we’ve got you covered.
Let’s get into it.
derp!
Network Metric
Your favourite chain just keeps cooking. Sonic is now sitting pretty as the 12th largest chain, boasting over $1.2 billion in liquidity, and growing faster than a degen on 50x leverage. In the past 30 days, TVL has blasted up by more than 53%, leading the growth of the top 15 chains.
In a display of cross-chain magnetism, over $190M has been bridged in from across all blockchains, led by heavy hitters from Solana and Base.
With TVL soaring to $1.22B, liquidity on Sonic is looking thicc. Fresh capital keeps flowing in from across the chains, and the recent debut of Aave is turning heads, racking up nearly $400M in supply liquidity in just over a month. Now that’s what we call making an entrance.
And the protocols? Oh, they’re not just vibin, they’re absolutely thriving. The top 3 have clocked in some serious gains this month, with growth ranging from a solid 30% to a super-sonic 678%.
Protocol Spotlight
And now, in tonight’s top story…
Pendle is turning heads and flipping yields with its big-brain take on DeFi. With over $104 million in TVL, it’s becoming a core piece of the Sonic puzzle, giving degens, farmers, and fixed-income maxis alike a new way to lose make money.
At its heart, Pendle does one simple but genius thing: it slices yield-bearing tokens into two juicy pieces, Principal Tokens (PT) and Yield Tokens (YT), letting you mix and match your strategy like a yield sommelier.
Principal Tokens
Think of PT like snagging a discount on your favorite yield-bearing asset.
Imagine you’re eyeing Sonic’s flagship LST, stS, and you grab $100 worth for just $80 today. You’ve got a year to chill. At the end of the year, boom! It’s worth the full $100. No interest earned along the way, but that $20 profit? It's locked in from the moment you made the purchase.
That $20? That’s your fixed yield, the return you secured upfront, no surprises, no ups and downs. Sit tight, wait for maturity, and redeem for the full value. Easy money.
No interest payments, no risk, just a solid, guaranteed gain.
Yield Tokens
YT is where the spice kicks in. You’re not buying the underlying asset, you’re buying the rights to its future yield. In DeFi, yields are always on the move. Pendle lets you place your bets on whether they’ll go up, down, or stay steady.
Picture this: someone’s sitting on a tasty $100 staking position but thinks the yield is about to nosedive. So they sell you the rights to the upcoming rewards for $20. You, the giga-brain degen, believe yield is about to send.
Fast-forward a few months: the rewards roll in and total $30. You just made $10 profit on a $20 bet, a spicy 50% return.
YT gives you leveraged yield exposure. If yield pumps, so do your gains.
Choose Your Pendle Strategy:
PT Maxi: Lock in a fixed return by buying PT and holding till maturity.
YT Degen: Grab YT and farm the yield + points like there’s no tomorrow.
LP: Pair PT or YT with stS in Pendle AMM to earn fees, incentives, and ride the volatility.
In short: Pendle lets you decide—steady yield or spicy speculation?
Strategy of the week
Alright, listen up, Sonic Fam—there’s some exciting lending market magic happening right now! This week’s Strategy of the Week is the PT-aUSDC market on Silo, and it’s a collaboration with Pendle, Aave, and Silo that’s leveling up the stablecoin loop game.
So what’s the deal? Silo has integrated Aave’s PT-aUSDC, offering a supercharged stablecoin strategy that gives you access to some seriously attractive yield opportunities.
How does it work? PT-aUSDC is a high-yield USDC derivative (USDC supplied on Aave that earns wS rewards) that gets a little extra juice from fixed yield on Pendle. In this isolated Silo market, you can use this PT-aUSDC to borrow scUSD, the native stablecoin from Rings Protocol.
For advanced users comfortable with leverage, looping PT-aUSDC can significantly amplify yield exposure. This strategy involves borrowing scUSD against PT-aUSDC to acquire more PT-aUSDC, and supplying back to the market, effectively compounding returns.
Swap scUSD for PT-aUSDC: Convert borrowed scUSD into more PT-aUSDC, effectively increasing your stake.
Repeat the Process: Keep cycling the borrowed funds to acquire more PT-aUSDC and maximize your yield exposure.
For looping to be profitable, the fixed-yield returns from PT-aUSDC must exceed the borrowing costs of scUSD. Keep in mind, leverage amplifies both the potential rewards and risks, so it's important to monitor the spread carefully to ensure your yields outpace the borrowing costs.
We’ve zoomed through the chain’s turbo-charged growth, spotlighted the Pendle powerhouse, dropped some spicy stablecoin strat alpha, and given you the lowdown on all things Sonic.
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Until next time — keep it super, keep it Sonic, and above all... keep derpin'.
