XY Finance now supports Sonic blockchain! Ready to dive the Sonic ecosystem and maximize your chances of farming Sonic airdrops? This blog has everything you need to know—Don’t miss out! 🔥
What is Sonic?
Sonic is a next-generation Layer 1 blockchain that is fully compatible with the Ethereum Virtual Machine (EVM). Built for speed, security, and scalability, Sonic provides world-class infrastructure and robust incentive mechanisms to empower decentralized applications (DApps) and the future of Decentralized Finance (DeFi).
Here are Sonic’s key features:
1. Blazing-Fast Performance – With the ability to handle up to 10,000 TPS and achieve sub-second finality, Sonic ensures smooth, instant, and seamless user experiences.
2. Native Token: $S – The $S token is the cornerstone of the Sonic ecosystem, facilitating transaction fees, staking, validator operations, and governance participation.
3. Incentive Mechanisms – Sonic fosters ecosystem growth with compelling incentives, including an airdrop program, fee monetization, and community-driven governance. These are all designed to reward participation and long-term engagement.
Source: Sonic Webiste
Why Sonic is Gaining Momentum
As of March 24, according to DeFiLlama, while the TVL of most other blockchains declined, Sonic’s ecosystem surged by an impressive 83% growth over the past month, reaching a total value locked (TVL) of $894.7 million. This growth has propelled Sonic past Hyperliquid and OP Mainnet, making it the 12th largest blockchain by TVL.
Source: DefiLlama
This rapid capital flow highlights the market’s confidence in Sonic, driven by its high performance infrastructure and incentive mechanisms—particularly its Airdrop Program and Fee Monetization Model.
Sonic Airdrop Program: Secure Your $S Tokens
According to Sonic’s official documentation, 190.5 million $S tokens have been allocated for the airdrop. The distribution will begin six months after $S launches (around June 2025) and will gradually unlock over the following nine months.
Users can earn airdrop points first by simply holding and using whitelisted assets across Sonic DeFi apps, with different multipliers applied based on participation level. There are three main ways to accumulate airdrop points:
1. Passive Points – Earn by Holding Assets
Simply holding the following whitelisted assets in your wallet to earn passive points.
⚠️ Note: Assets like WETH, scUSD, scETH, scBTC, LBTC, SolvBTC, and SolvBTC.BBN only earn activity points and not passive points.
Source: Sonic‘s Document
2. Activity Points – Earn by Deploying Assets
Earn 2× more points by actively deploying assets in Sonic ecosystem DApps—such as providing liquidity or staking. The full list of eligible applications can be found on the points dashboard.
Source: Points Dashboard
3. App Points (Gems) – Earn Additional Rewards
The S airdrop includes a developer-focused portion, where apps compete for an airdrop allocation known as Sonic Gems. Apps can redeem these Gems for S tokens, which they can then distribute to their users however they want.
Fee Monetization: Earn 90% Network Fees
Fee Monetization (FeeM) on Sonic rewards applications with up to 90% of the network fees they generate, providing a sustainable revenue stream. This allows developers and project teams to focus on scaling their applications and expanding their user base without the ongoing pressure of fundraising or securing additional financing.
By prioritizing developer rewards, Sonic distinguishes itself from many blockchains that offer limited incentives and primarily focus on value extraction.
Source: Points Dashboard
Exploring the Promising Sonic Ecosystem
The Sonic ecosystem has made a strong impact in the DeFi space, spanning DEXs, lending protocols, and yield farming platforms. Here are three of the hottest projects:
Shadow Exchange (DEX)
Shadow Exchange is the native decentralized exchange (DEX) on the Sonic blockchain, with TVL exceeding $78 million. Its most notable feature is the introduction of an enhanced version of the ve(3,3) mechanism—x(3,3), which has successfully attracted market attention.
The ve(3,3) was created by Andre Cronje in 2021, combining Curve’s “Ve-Token” with Olympus’s “3,3” concept. It aims to address the high inflation issue caused by liquidity mining by rewarding users who lock their tokens through transaction fees, rather than solely relying on passive token issuance.
Shadow introduces a more flexible version: x(3,3) token model. Unlike the original ve(3,3), x(3,3) offers an exit mechanism, letting users earn without committing to long-term token locks—striking a balance between incentivization and flexibility.
Source: Shadow x(3,3)
Silo Finance (Lending)
Silo Finance is currently the top-ranked lending protocol in the Sonic ecosystem, with an impressive TVL of $226 million. Its key feature is risk isolation, meaning that each asset has its own independent lending market, preventing risks from spreading across different assets.
In traditional lending protocols, all assets share a single liquidity pool. This structure poses a systemic risk—if one asset crashes and its liquidation fails to cover outstanding debt, the entire system could suffer from bad debt.
In contrast, Silo Finance implements an independent market mechanism where each asset is confined to its dedicated silo. Even if one asset collapses, the impact remains isolated, ensuring the overall stability of the protocol.
Source: Silo Finance Website
Rings (Yield Aggregator)
Rings Protocol is a yield aggregator within the Sonic ecosystem. Users can deposit stablecoins, ETH, and BTC derivatives to mint corresponding yield-bearing assets, namely scUSD, scETH, and scBTC. These assets can be staked to earn yields or used to participate in other Sonic‘s protocols.
The yields provided by Rings Protocol originate from Veda Labs’ BoringVaults. These automated vaults, managed by the Veda team, deploy the deposited assets into DeFi protocols across Ethereum and the Sonic ecosystem for yield farming. The vaults autonomously execute yield farming strategies and adjust asset allocations to enhance capital efficiency.
Source: Rings Protocol Document
How to Bridge to Sonic
Excited to bridge to Sonic and explore its innovative ecosystem? Here’s a quick and easy guide to get started:
- Visit the XY Finance Transfer page and click “Connect Wallet”
- Connect your Web3 wallet
- Select the tokens & chains – ensure Sonic is set as your destination chain
- Review the details and choose the best route
- Approve & confirm the swap
- Wait for the transaction to complete
In most cases, cross-chain transactions will be completed within minutes. To view your past transaction records, you can click the Transaction button.
If your transaction cannot be completed, please raise a ticket in the XY Finance Discord. Our team will be happy to help you resolve the issue as soon as possible.
Related: Bridge to Solana: A Step-by-Step Guide from Ethereum, Base, BNB & Other EVM Chains
Related: How to Bridge to Abstract from Base, Arbitrum, BNB and more?
About XY Finance
XY Finance is a cross-chain interoperability protocol aggregating DEXs & Bridges. With the ultimate routing across multi-chains, borderless and seamless swapping is just one click away.
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