HTX Research Latest Report | Sonic: A Case Study in the New DeFi Paradigm
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HTX Research Latest Report | Sonic: A Case Study in the New DeFi Paradigm
Sonic is redefining the performance limits of public blockchains, ushering them into the "second era."
Navigating Web3 tides with focused insightsWhile the industry remains divided over Layer2 scaling, Sonic has delivered a new answer through a "底层 revolution." Recently, HTX Research released its latest report titled "Sonic: A Case Study in the New DeFi Paradigm", providing an in-depth analysis of the new public chain Sonic. While fully maintaining EVM compatibility, Sonic achieves breakthrough performance—over 2000 TPS throughput, 0.7-second transaction finality, and a per-transaction cost of just $0.0001—by reconstructing the virtual machine, storage engine, and consensus mechanism. These metrics outperform mainstream Layer1 blockchains and even surpass most Layer2 solutions. With such revolutionary performance, Sonic is reshaping public chain infrastructure and ushering blockchains into the "sub-second era."
Sonic’s Innovation Journey: 2000+ TPS, 0.7-Second Finality, Near-Zero Transaction Costs
Fantom Opera, a high-performance blockchain based on a directed acyclic graph (aDAG), initially gained attention for its fast confirmation times and high throughput. However, as its on-chain ecosystem expanded, limitations of its traditional EVM architecture became evident: state storage bloat, slow node synchronization, and constrained execution efficiency. To address this, Fantom introduced Sonic—a comprehensive upgrade designed to achieve a quantum leap in performance through foundational reengineering, without relying on sharding or Layer2 scaling.
Developed by the restructured Sonic Labs, the core team brings together top-tier industry talent: CEO Michael Kong, CTO Andre Cronje (founder of Yearn Finance), and Chief Research Officer Bernhard Scholz. After two and a half years of development, the team optimized every layer—from the virtual machine and storage engine to the consensus mechanism—resulting in an independent new chain. Sonic delivers over 2000 TPS, 0.7-second finality, $0.0001 average transaction cost, 90% improvement in storage efficiency, and reduces node sync time from weeks to under two days—all while maintaining full EVM compatibility.
Technical Breakthroughs: A Triad of Performance Leaps
SonicVM: A redesigned virtual machine that dynamically compiles EVM bytecode, caches frequent operations (e.g., SHA3 hashing), and pre-analyzes jump instructions, increasing execution efficiency multiple-fold and enabling high-throughput performance.
SonicDB: A layered storage architecture that separates real-time state (LiveDB) from historical data (ArchiveDB), compressing storage usage by 90%. This significantly lowers node operation requirements and strengthens decentralization.
Sonic Gateway: A Layer2-like cross-chain bridge connecting to Ethereum, using batch processing to balance security and efficiency. It enables bidirectional asset transfers, seamlessly integrating with the Ethereum ecosystem.
Tokenomics: Dual Incentives for Developers and Users
Sonic introduces its native token S, exchangeable with the legacy FTM token at a 1:1 ratio, serving functions including gas payment and staking-based governance. Key innovations include:
● Gas Fee Monetization (FeeM): Developers can receive up to 90% of transaction fees, incentivizing application innovation. For non-FeeM applications, 50% of fees are burned to curb inflation.
● Rewards Points & Airdrop System: Users earn points (Passive/Activity Points and Gems) through holding tokens, participating in DeFi, or engaging with the ecosystem. These can be redeemed for a total allocation of 200 million S tokens, creating a positive feedback loop of “use-to-mine.”
Stablecoin Ecosystem: Nested Yield and Counter-Trend Growth
During the bear market of 2025, Sonic’s TVL grew over 500%, with stablecoin supply exceeding $260 million—driven primarily by high-leverage yield strategies:
● Silo v2 Loop Lending: Users stake S tokens to borrow stablecoins, achieving up to 20x leverage and capturing multi-layered rewards and interest rate spreads.
● Euler + Rings Combo: Deposit USDC to mint overcollateralized stablecoin scUSD, then apply leverage for up to 10x amplified returns, while earning Sonic points and protocol airdrops.
● Shadow DEX Liquidity Mining: Provide liquidity for major trading pairs with up to 169% APY, plus a share of trading fees.
Future plans include integrating RWA (real-world assets) yields and off-chain payment use cases, leveraging compliant asset backing and consumer applications to build a sustainable stablecoin utility loop.
DeFi Infrastructure Innovation: Adaptive AMM and Dynamic Risk Control
Sonic’s flagship DEX, FlyingTulip, designed by Andre Cronje, integrates trading, lending, and leveraged positions. Key technical advances include:
- Adaptive AMM Curve: Combines Curve V2’s concentrated liquidity model with external oracle volatility monitoring to dynamically adjust curve shape—approaching constant sum during low volatility (minimizing slippage) and shifting toward constant product during high volatility (preventing liquidity depletion). This reduces impermanent loss by 42% and improves capital efficiency by 85%.
- Dynamic LTV Lending Model: Inspired by Curve’s LLAMMA liquidation mechanism but adjusts loan-to-value ratios in real time based on market volatility. For example, ETH collateral ratios can drop from 80% in calm markets to 50% during turbulence, reducing systemic risk.
Conclusion: The Significance of a DeFi 2.0 Blueprint
Leveraging its triple advantages of high performance, nested yield structures, and low barriers to entry, Sonic’s TVL is projected to surpass $2 billion within 12 months, with the S token potentially reaching a multi-billion-dollar market cap. Its model sets a new industry benchmark—replacing liquidity farming hype with on-chain efficiency and real yield—and may fundamentally shift competitive dynamics among public chains.
Potential risks remain technical: the adaptive AMM relies on external oracles, making it vulnerable to price manipulation that could destabilize liquidity pools. High-leverage strategies also face liquidation risks during extreme market moves, necessitating hedging tools like perpetual short positions to manage volatility.
From a macro perspective, Sonic is poised to emerge as a dark horse in the 2025 DeFi recovery wave. The success of its stablecoin ecosystem creates substantial upside potential for the S token and overall network value. Sonic’s rise validates a critical thesis: even in a bear market, DeFi can build resilient “yield fortresses” through mechanism design and performance innovation, attracting rational, long-term capital. Its nested yield models, developer incentive framework, and efficient infrastructure offer a replicable blueprint for the industry. If Sonic successfully integrates RWA and real-world payments, it could become a bridge linking on-chain yields with real economic demand, driving DeFi into a new phase of mass adoption.
To read the full report, visit: https://square.htx.com/wp-content/uploads/2025/04/HTX-Research-Zui-Xin-Yan-Bao.pdf
About HTX Research
HTX Research is the dedicated research arm of HTX Group, conducting in-depth analysis across cryptocurrencies, blockchain technology, and emerging market trends. It produces comprehensive reports and expert assessments, delivering data-driven insights and strategic foresight. Committed to shaping industry discourse and supporting informed decision-making in digital assets, HTX Research stands at the forefront of innovation with rigorous methodology and cutting-edge data analytics, leading thought leadership and advancing understanding of evolving market dynamics.
For inquiries, please contact research@htx-inc.com
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