WOO X Research: TVL increased by 130% in a month, what fun things are on Sonic?

Sonic announced that it will issue a total of 190.5 million S tokens. The reward mechanism for these tokens is divided into two parts: 25% of the rewards can be withdrawn immediately, while the remaining 75% will be gradually released in the form of tradable NFTs.

Written by: WOO

Recently, the market is in a narrative vacuum, memes have cooled down, on-chain activities on Solana have sharply decreased, and most altcoins have plummeted by over 80% within three months. However, there is still one public chain that has seen its TVL grow by over 130% in just one month, ranking first among all public chains, and that is Sonic.

What recent activities does Sonic have? What key projects are worth paying attention to among them? Let's take a look with WOO X Research!

Reference: Defillama

What is Sonic? What is the recent 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, which collaborated with Fantom, experienced a vulnerability, resulting in significant de-pegging of stablecoins (USDC-MULTI, fUSDT-MULTI, etc.) issued by the bridge contracts on Fantom, affecting the stability and trust of the entire ecosystem. Against this backdrop, Fantom proposed an upgrade to Sonic.

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will issue a total of 190.5 million S tokens, with a reward mechanism divided into two parts: 25% of the rewards can be withdrawn immediately, while the remaining 75% will be gradually released in the form of tradable NFTs.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

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

Sonic Points are user-oriented airdrop points, divided into passive points and active points. Holding whitelist assets in a Web3 wallet can earn passive points, while deploying whitelist assets in the application can earn active points; WETH, SolvBTC, and SolvBTC.BBN can only earn active points. The rewards for active points are twice that of passive points.

Sonic Popular Projects

Sheep Coin (@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 gain profits by purchasing, minting, protecting, and attacking assets.

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

2. Minting Wolf NFTs: Players can use Sheep Coin and $S to mint Wolf NFTs. The cost of each minting will increase 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 with offensive characteristics in the game, and their behavior patterns are as follows:

• Each Wolf needs to eat Sheep every day, with the consumption increasing with each passing day (1 on the first day, 2 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 consume Sheep from the liquidity pool, 100% of the Sheep will be destroyed. Each Wolf can consume from the liquidity pool a maximum of 3 times.
• 钱包 ( 自己的或别人 ): 若从钱包中吃 Sheep,25% 的 Sheep 会给予 Wolf 拥有者,其余 75% 被销毁。

4. Sheepdog 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 the Shepherd Dog allows the Sheep stored in the Shepherd Dog to earn rewards in S through an annualized yield of (APR). Additionally, 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: The continuous deflation of sheep caused by "wolves eating sheep" leads to an increase in coin price

• Although the number of sheep will gradually decrease, the Sonic Token allocated in the liquidity pool will not diminish, which means the value of holding sheep has the opportunity to stabilize and increase. However, players still need to bear the risk of being attacked by wolves.

About Wolves: High Cost, High Risk but Also Potentially High Returns

• The casting cost of the wolf will gradually increase depending on the order of casting, and whether it can be profitable largely depends on whether it can eat the sheep of other players. If the wolf is unable to feed for a long time or gets starved, it may lead to investment failure.
• If there are a large number of wolves appearing in the market at the same time, the battle for sheep will become more intense; however, if the number of wolves is limited, the speed at which sheep are destroyed may not be sufficient to support the wolves' rapid return on investment.

Sheepdog: Maintain with daily rent for safety and additional profits

• A fixed rental fee 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 recoup the rental fee; however, if the number of sheep is sufficient, the appreciation of the guardian sheep over time will be more attractive.
• The existence of shepherd dogs is to prevent sheep from being eaten and to gain additional profits from the continuously appreciating sheep.

Gambling Issue 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: eating quickly in the short term can accelerate recouping losses, but it will also lead to a rapid increase in the wolves' demand for sheep. If the feeding pace is slow, it can extend the wolves' survival and activity space, but the time required to recoup losses will also be longer.
• As the sheep gradually appreciate due to deflation, the returns from eating a sheep later may not necessarily be worse than those earlier, thus "when to eat" is a major strategic consideration.

Gambling Problem 2: Should We Rent a Sheepdog?

• Regardless of how many sheep the player owns, they need to pay the same rent. To earn back this rent through APY, a relatively large number of sheep is needed to break even.
• The essential function of the shepherd dog is to protect the sheep from being eaten by wolves, while also enjoying the advantage of the rising price of sheep coins.

Possible Situations and Corresponding Strategies

• Due to the high costs and uncertainties associated with wolves, there may not be a large number of players eager to mint wolves; when wolves are relatively scarce, the rate at which sheep are destroyed may slow down, and the profit cycle for wolves might be delayed.
• If everyone chooses not to use sheepdogs, they may each distribute their sheep to multiple wallets in an attempt to reduce the risk of being subjected to a locking 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 pay attention to ecological dynamics and adjust strategies flexibly.

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, and convert it into tradable $OIL for profit. Here are the core mechanics of the game:

1. Buy a plot

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

2. Buy some Pumps

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

3. Add decorations

• Players can decorate the plots to enhance their 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 at the "Refinery" before it can become tradable $OIL.
• The lock-up period and tax rate for extraction are as follows:
• 0 - 1 day: Unable to withdraw.
• 1 - 2 days: A 10% tax is required for withdrawals.
• 2 - 3 days: A 5% tax is required for withdrawals.
• Over 3 days: Tax-free withdrawal.
• The longer the refining time, the higher the returns.

Testing Strategy and Recommendations

1. Ensure continuous production: Retain enough cOIL for pump repairs to avoid oil production interruptions.
2. Optimize withdrawal strategy: Try to wait until 3 days later to withdraw $OIL to avoid being charged high taxes.
3. Upgrade and Decorate Balance: Enhance both pump capacity and decorative effects simultaneously to increase overall output.

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

Reference: @Petroleum_Defi