TVL increased by 130% in a month, what opportunities are there on Sonic?

Recently, the market is in a narrative vacuum period, memes have cooled down, on-chain activity on Solana has sharply decreased, and most altcoins have fallen by more than 80% within three months. However, there is still a public chain whose TVL has risen by over 130% in one month, ranking first among all public chains, and that is Sonic.

What recent activities has Sonic had? What key projects are worth paying attention to? Let's take a look with WOO X Research!

Reference: Defillama

What is Sonic? What is the latest airdrop event?

Sonic is the predecessor of Fantom, which is a Layer 1 public chain launched in 2019, focusing on DeFi and dApps. It was extremely popular during 2021-2022, with a peak TVL of around 8 billion. In 2022, AC announced a temporary exit from the DeFi industry, leading to a decline in market confidence in Fantom. In July 2023, the cross-chain bridge Multichain experienced a vulnerability, causing stablecoins issued by the bridge contracts on Fantom (USDC-MULTI, fUSDT-MULTI, etc.) to significantly depeg, impacting the stability and trust of the entire ecosystem. Against this backdrop, Fantom proposed an upgrade to Sonic.

Sonic announced the issuance of a total of 190.5 million S tokens, with the reward mechanism divided into two parts: 25% of the rewards can be withdrawn immediately, while the remaining 75% will be gradually released in the form of tradable NFTs. Users can qualify through two methods:

• Points (for network participants)
• Gems (for developers). The potential returns of these avenues may far exceed those of typical speculative airdrops.

Sonic Points are user-driven airdrop points, divided into passive points and active points. Holding whitelisted assets in a Web3 wallet can earn passive points, while deploying whitelisted assets in applications can earn active points; WETH, SolvBTC, and SolvBTC.BBN can only earn active points. The returns from active points are double that of passive points.

Sonic popular projects

SheepCoin (@SheepCoin69)

Reference: @SheepCoin69

Sonic Wolf Sheep Game is a strategic game ecosystem that combines blockchain asset management, NFT mechanisms, and DeFi protocols. Players can establish their advantages and earn profits by purchasing, minting, protecting, and attacking assets.

1. Purchase Sheep Coin: Players can use $S to buy Sheep Coin at a 1:1 ratio. During this process, 95% of Sonic Token will be provided to Sheep Coin as liquidity. After launch, Sheep Coin can be traded freely.

2. Minting Wolf NFTs: Players can use Sheep Coin and $S to mint Wolf NFTs. The cost of minting increases with each instance (the 1st requires 1 Sheep, the 2nd requires 2 Sheep, and so on), and all Sheep Coins used for minting will be permanently destroyed. This means that each minting will reduce the total supply.

3. Wolf NFT Mechanism Wolf NFTs are assets in the game with offensive properties, and their behavior patterns are as follows:

• Each Wolf needs to eat Sheep every day, and the consumption increases with the number of days (1 coin on the first day, 2 coins on the second day, and so on).
• If Wolf does not eat Sheep for 7 consecutive days, it will become unusable (presumably unable to generate income or participate in the game).

Wolf can eat in two ways:

• Liquidity Pool: If you eat Sheep from the liquidity pool, 100% of the Sheep will be burned. Each Wolf can eat from the liquidity pool a maximum of 3 times.
• Wallet ( own or others ): If you eat Sheep from the wallet, 25% of the Sheep will be given to the Wolf owner, and the remaining 75% will be destroyed.

4. Shepherd Dog Protection Mechanism: Players can deposit their Sheep into the Sheep Dog for protection. To withdraw, players must activate "Sleep Mode," wait for 2 days, and pay a fee.

5. The reward mechanism for Shepherd Dogs stores Sheep in Shepherd Dogs, which can earn rewards in S through an annualized yield of (APR). In addition, the fees paid by players when withdrawing assets will also be part of the rewards.

The following is an interpretation of the game.

Core concept: Through "wolf eating sheep", the sheep will continue to deflation, thereby pushing up the currency price

• Despite the gradual decrease in the number of sheep, the Sonic Token allocated in the liquidity pool will not decrease, which means that the value of holding sheep has a chance to stabilize and rise. However, players still need to bear the risk of being attacked by wolves.

About Wolves: High Costs, High Risks but also Potentially High Returns

• The minting cost of the wolf will gradually rise due to different minting orders, and whether it can be profitable largely depends on whether it can eat the sheep of other players. If the wolf cannot feed for a long time or is starved to death, it may lead to investment losses.
• If there are a large number of wolves appearing in the market at the same time, the battle for sheep will become more intense; but if the number of wolves is limited, the speed at which sheep are destroyed may not necessarily support the wolves' quick return on investment.

Sheepdog: Maintain with daily rental fees to exchange for security and additional profits

• A fixed rent of 10 S needs to be paid daily, of which 95% will be returned to everyone as APY. If you have too few sheep, it will be difficult to cover the rent; however, if you have enough sheep, the appreciation of the guardian sheep over time will be more attractive.
• Shepherd dogs exist to avoid sheep being eaten and to make additional profits from sheep that continue to increase in value.

Game Theory Question 1: Is it worth investing in minting wolves?

• The minting fee for wolves is competitive among players; minting earlier may provide an advantage, but one must also consider the intensity of competition and the high costs involved.
• The feeding strategy of wolves is crucial: quick feeding in the short term can accelerate the return on investment, but it will also cause the demand for sheep to soar rapidly. If the feeding pace is slow, it may extend the wolf's survival and activity space, but the time required to recoup the investment will also be longer.
• As the sheep will gradually appreciate due to deflation, the returns from eating a sheep later may not necessarily be worse than those from earlier, thus "when to eat" is a major strategic consideration.

Game Theory Problem 2: Should We Rent a Sheepdog?

• Regardless of how many sheep a player has, they need to pay the same amount of rent. To earn back this rent through APY, a relatively large number of sheep is required to break even on costs.
• The essential function of a shepherd dog is to ensure that the sheep are not eaten by wolves, while also enjoying the advantages of the rise in sheep coins.

Possible Situations and Corresponding Strategies

• Due to the high costs and uncertainties of wolves, there may not be a large number of players rushing to mint wolves; when wolves are relatively scarce, the rate at which sheep are destroyed slows down, potentially delaying the profit cycle of wolves.
• If everyone chooses not to use a shepherd dog, they may each disperse the sheep across multiple wallets in an attempt to reduce the risk of being locked in an attack.
• There is no fixed "best solution" in the game, as the market and player actions can change at any time; to ultimately profit, one needs to continuously monitor the ecological dynamics and flexibly adjust strategies.

Petroleum Finance(@Petroleum_Defi)

Petroleum City is a blockchain game themed around oil extraction. Players refine crude oil (cOIL) by building, upgrading, and managing pumps (Pumps), and convert it into tradable $OIL to earn profits. Here are the core mechanics of the game:

1. Buy a plot

• Each player can purchase and customize their own plot to build an oil empire.
• The plot can enhance productivity by adding pumps, decorations, and other methods.

2. Buy some Pumps

• The pump is the core production tool of the game, and each pump will continuously and automatically produce cOIL (crude oil).
• The pump can be upgraded to increase output, but over time it will gradually decay, and repairs with cOIL are needed to maintain production.

3. Add decorations

• Players can decorate plots to enhance appearance and personal style.
• Suggestions for new decorations can be made through the App or Discord.

4. Refine your $cOIL

• The produced cOIL must be refined in the "Refinery" before it can become tradable $OIL.
• The lock-up period and tax rate for the extracted are as follows:
• 0 - 1 days: Withdrawal not available.
• 1 - 2 days: Withdrawals are subject to 10% tax.
• 2 - 3 days: Withdrawals are subject to a 5% tax.
• More than 3 days: tax-free withdrawal.
• The longer the extraction time, the higher the yield.

Measurement and Suggestions

1. Ensure continuous production: Retain enough cOIL for pump repairs to avoid oil production interruptions.
2. Optimize extraction strategy: Try to wait until 3 days after to withdraw $OIL to avoid high taxes.
3. Upgrade and decoration balance: simultaneously enhance pump capacity and decoration effects to increase overall output.

Petroleum City is centered around the core loop of "producing cOIL → repairing pumps → refining into $OIL → reinvesting for upgrades". Players need to strategically plan production, refining, and upgrading in order to steadily earn profits and expand their assets.

Reference: @Petroleum_Defi