TVL increased by 130% in one month. What opportunities are there on Sonic?

The market has been in a narrative vacuum recently, memes have died down, Solana on-chain activity has plummeted, and most altcoins have fallen by more than 80% in three months. However, there is still one public chain whose TVL has increased by more than 130% in one month, ranking first among all public chains, and that is Sonic.

What are Sonic's recent activities? What are the key projects worth paying attention to? Let WOO X Research show you!

 Reference: Deflama

What is Sonic? What is the latest airdrop event?

Sonic's predecessor is Fantom, a Layer 1 public chain launched in 2019 that focuses on DeFi and dApp. It was very popular in 2021-2022, with a TVL of about 8 billion at its peak. In 2022, AC announced its temporary withdrawal from the DeFi industry, and market confidence in Fantom declined. In July 2023, a vulnerability occurred in the cooperative cross-chain bridge Multichain, and the stablecoins (USDC-MULTI, fUSDT-MULTI, etc.) issued by the bridge contract on Fantom were significantly decoupled, affecting the stability and trust of the entire ecosystem. Against this background, Fantom proposed to upgrade to Sonic.

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190.5 million S tokens, and the reward mechanism for these tokens is divided into two parts: 25% of the rewards can be withdrawn immediately, while the remaining 75% will be gradually released in the form of tradable NFTs.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

• Points (for network participants)
• Gems (for developers). The return potential of these avenues may far exceed the average speculative airdrop.

Sonic Points are user-oriented airdrop points, which are divided into passive points and activity points. Passive points can be obtained by holding whitelisted assets in Web3 wallets, and activity points can be obtained by deploying whitelisted assets in applications; WETH, SolvBTC and SolvBTC.BBN can only obtain activity points. The income of active points is 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 mechanism and DeFi protocol. Players can build their own advantages and gain benefits by purchasing, minting, protecting and attacking assets.

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

2. Minting Wolf NFTs: Players can use Sheep Coins and $S to mint Wolf NFTs. The cost of each minting will increase with the number of times (only 1 Sheep is needed for the first time, 2 Sheeps are needed for the second time, 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 offensive assets in the game, and their behavior patterns are as follows:

• Each Wolf needs to eat Sheep every day, and the amount consumed increases with the number of days (1 on the first day, 2 on the second day, and so on).
• If Wolf does not eat a 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 destroyed. Each Wolf can only eat from the liquidity pool 3 times at most.
• Wallet (your own or someone else's): If you eat Sheep from a wallet, 25% of the Sheep will be given to the Wolf owner, and the remaining 75% will be destroyed.

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

5. Sheepdog Reward Mechanism Sheeps stored in the Sheepdog can get S rewards through the annualized rate of return (APR). In addition, the handling fee paid by the player when withdrawing assets will also be part of the reward.

Here is an interpretation of the game

Core concept: Through "wolves eating sheep", sheep will continue to deflate, thereby pushing up the price of the currency

• Although the number of sheep will gradually decrease, the Sonic Tokens allocated in the liquidity pool will not decrease, which means that the value of holding sheep has the opportunity to steadily increase. However, players still have to bear the risk of being attacked by wolves.

About Wolves: High costs, high risks, but also potential high returns

• The cost of casting wolves will gradually increase depending on the order of casting, and whether they can make a profit depends largely on whether they can eat other players' sheep. If the wolf cannot eat for a long time or the wolf starves to death, it may lead to investment failure.
• If there are a large number of wolves on 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 support the wolves' quick return on investment.

Shepherd: Daily rent for maintenance in exchange for safety and extra income

• A fixed 10 S is required every day as rent, and 95% of it will be returned to everyone as APY. If the number of sheep in hand is too small, the rent will be difficult to recover; but if the number of sheep is sufficient, it will be more attractive to guard the sheep and appreciate over time.
• The sheepdog exists to prevent the sheep from being eaten and to gain additional profits from the continued appreciation of the sheep.

Game question 1: Is it worth investing in casting wolves?

• There is competition among players for the casting fee of wolves. Although the earlier you cast, the better the advantage you will get, you must also consider the intensity of competition and the high cost.
• The wolf's feeding strategy is crucial: eating quickly in the short term can speed up the return on investment, but it will also cause the wolf's demand for sheep to soar rapidly. If the eating rhythm is slow, although it can prolong the wolf's survival and activity space, it will take longer to return on investment.
• Since sheep will gradually appreciate in value due to deflation, the benefit of eating a sheep in the later period may not be worse than in the earlier period, so "when to eat" is a major strategic consideration.

Game question 2: Should I rent a sheepdog?

• No matter how many sheep a player has, they need to pay the same rent. If you want to earn back this rent through APY, you need a relatively large number of sheep to spread the cost.
• The real function of a sheepdog is to protect the sheep from being eaten by wolves while enjoying the advantage of rising sheep coins prices.

Possible situations and corresponding strategies

• Since the cost and uncertainty of wolves are high, there may not be a large number of players rushing to forge wolves; when wolves are relatively scarce, the rate at which sheep are destroyed slows down, and the wolf's profit cycle may be delayed.
• If everyone chooses not to use sheepdogs, they may spread their sheep across multiple wallets in an attempt to reduce the risk of being targeted by attacks.
• There is no fixed "best solution" in the game because the market and player actions will change at any time; to ultimately make a profit, you need to continue to pay attention to ecological dynamics and flexibly adjust your strategy.

Petroleum Finance(@Petroleum_Defi)

Petroleum City is a blockchain game with the theme of oil mining. Players refine crude oil (cOIL) by building, upgrading and managing pumps, and convert it into tradable $OIL to earn profits. The following are the core mechanics of the game:

1. Buy a plot

• Each player can purchase and customize their own plots of land to build an oil empire.
• The production capacity of a plot can be increased by adding pumps, decorations, etc.

2. Buy some Pumps

• The pump is the core production tool of the game. Each pump will continuously and automatically produce cOIL (crude oil).
• The pump can be upgraded to increase production, but it will gradually decay over time and needs to be repaired with cOIL to continue production.

3. Add decorations

• Players can decorate 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 in a "Refinery" before it can become tradable $OIL.
• The lock-up period and tax rate for extraction are as follows:

• 0 - 1 days: Unable to withdraw.
• 1 - 2 days: Withdrawals are subject to 10% tax.
• 2 - 3 days: Withdrawals are subject to 5% tax.
• More than 3 days: tax-free withdrawal.

• The longer the refining time, the higher the yield.

Strategies and suggestions

1. Ensure continuous production: Sufficient cOIL is retained to repair the pump and avoid oil production interruption.
2. Optimize the extraction strategy: Try to wait 3 days to withdraw $OIL to avoid being charged high taxes.
3. Balance of Upgrades and Decorations: Improve pump capacity and decoration effects at the same time to increase overall output.

Petroleum City's core cycle is "produce cOIL → repair pumps → refine into $OIL → repeat investment and upgrade". Players need to plan production, refining and upgrade strategies reasonably to obtain stable income and expand assets.

 Reference: @Petroleum_Defi