Sonic is a new decentralized exchange and automated market maker with 1 second transaction completion time and no gas fees.
Sonic launches a new decentralized exchange and automated market maker (AMM) running on Internet Computer blockchain, users can now access permissionless token swaps and liquidity via protocol – where Internet Computer’s reverse gas model introduces a new era of DeFi with zero gas fees and 1-second transaction completion times. Founded after DFinance rebranded and joined Web3 studio Psychedelic, Sonic aims to become one of the leading DeFi hubs serving the Internet Computer and its ecosystem.
Essentially comprised of a family of DeFi protocols, Sonic provides permissionless swaps and liquidity mining. Its swap will allow users to deposit tokens and automatically get specific coins back. Similarly, its liquidity protocols allow users to deposit tokens into pools and earn regular rewards through collecting fees from users performing swaps.
Its launch is a big step towards composable DeFi on the Internet Computer. Sonic is opening up its API to other groups of developers so they can build interoperable dapps to further expand the Internet Computer’s thriving DeFi ecosystem, and Sonic says everything in the product will be made open source in the coming weeks.
As Nicolas Poggi, COO of Psychedelic, explains: “Sonic’s DeFi protocols will not only serve DeFi users as an AMM platform but will provide tools to build through the protocol’s APIs to developers can build, along with other emerging Internet Computer DeFi protocols, new platforms and experiences that further expand this ecosystem. ”
License-free swaps and liquidity profiles
On Sonic, users who identify potential demand from other users wanting to swap in or out of the token can earn themselves a reward (in the form of a swap fee) for providing liquidity to the underlying liquidity pool a version of the swap.
Access to swaps and their pools is permissionless, while users can also initiate new swaps themselves. All they need to do is download the Plug wallet and use it to log in to Sonic.
Initially, Sonic will launch with three tokens supported by default: ICP, Wrapped ICP (WICP), and Cycles Token (XTC).
“Starting with Internet Computer’s native token is the first step toward providing DeFi utility for these assets on the network,” Poggi said. “From here, we can expect community-generated tokens to start appearing and being added to Sonic.”
Other tokens will be added to Sonic based on community needs, with the only requirement being that they support the DIP20 standard. The range is likely to expand rapidly, with Sonic himself already seeing strong growth after just three days of operation.
In fact, within three days of launch, Sonic processed over 11,000 transactions, with 130,000 XTC and 9,500 liquid WICPs, or more than $365,000 – increasing ICP burn rates to over 64% in this process
Speed and Interoperability
“In an instant, any DEX on the Internet Computer can benefit from the perks the network can offer in terms of transaction speed and small fees. The computing power and scalability of the #IC could make these perks the norm for this and any other DeFi experience,” Poggi said.
The direct integration of Internet Computers with chains like Bitcoin and Ethereum – as well as community-built “bridges” like Terabethia with Ethereum – will also allow Sonic to provide multi-chain services. Sonic will benefit from Internet Computer’s ability to bring assets from other chains into its ecosystem, where they can seamlessly interact with tokens on #IC.
“That could allow for swap pairs, liquidity pools, and other DeFi protocols on the Internet Computer with a mix of both local #IC assets and tokens from other chains,” Poggi noted.
He added: “Bringing BTC liquidity to the Internet Computer could allow the BTC ecosystem to join a whole new wave of multi-chain asset interaction and use cases. “It allows everything from BTC smart contracts that power complex DeFi operations on ICs, like lending, to creating a “Wrapped” version of BTC, to interact seamlessly. circuit with #IC tokens and assets from other Terabethia bridge chains, such as Ethereum.”
The Birth of a New Era for DeFi
Looking to the future, Sonic’s launch heralds a new era for DeFi due to Internet Computer’s technical superiority over legacy blockchains and its reverse gas model. By attracting users and encouraging liquidity growth, Sonic will help provide the foundation on which other Internet Computer-based DeFi protocols or exchanges will drive the entire DeFi industry to millions of users new.
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