Master Sonic: 9 Simple Operations for a Smooth DeFi Experience

Author: luis fausto | $S

Compilation: Deep Tide TechFlow

Do you want to experience decentralized finance (DeFi) on Sonic but don't know where to start? Perhaps you've heard of "circular investment" or "concentrated liquidity," but find these concepts too complex and difficult to understand.

If you, like me, prefer simple and easy operations while also earning rewards (profits + points) without needing too much technical knowledge, then this guide is prepared for you.

Disclaimer: This article is for educational purposes only and does not constitute investment advice. Please be sure to do your own research before participating in any DeFi protocols.

1. Hold $S

Holding $S is the first step for most activities in this guide. If you have assets on other blockchains, you can use applications like deBridge, Rhino, Magpie, or StarGate.io to bridge your assets over and acquire some $S.

In addition, simply holding $S can earn passive points for the Sonic airdrop.

If you want to learn more about cross-chain bridges, you can check out this guide or my pinned tweet.

2. Purchase NFT on PaintSwap

Although purchasing NFTs does not strictly fall under DeFi, it is a simple way to interact on-chain. Visit PaintSwap to explore available NFT collections. After finding a piece you like, you can place a bid or buy it directly.

Although holding an NFT does not earn points, some NFTs offer additional benefits, such as airdrops or whitelist eligibility for other Sonic events.

3. Exchange $S for Liquid Staking Tokens (LST)

Liquid staking allows you to maintain liquidity while staking tokens. Exchange some $S for LSTs, such as stS (Beets), OS (Origin), or aS (Angles), to earn yields (for example, stS offers a 4.5% annual percentage yield). These LSTs will also accumulate passive airdrop points.

Extra rewards: Transfer newly acquired LST (e.g., OS) to Spectra, select a fixed rate (PT) position and deposit OS to earn more yields.

4. Deposit USDC into Silo

Imagine Silo as a bank account on the blockchain. You can deposit assets for lending. A simple way to earn returns is to deposit USDC into one of its markets and start earning an annualized return of 6.5%—just like a bank, but on-chain. You can also earn passive airdrop points.

5. Provide single-sided liquidity on SwapX

Traditional liquidity providing (LP) usually requires holding two types of assets in the pool at the same time (e.g., S/USDC). SwapX supports single-sided deposits, which means you only need one type of asset (e.g., USDC). Find a stablecoin pool, deposit some stablecoins, and start earning trading fees.

6. Exchange tokens on Shadow

Do you have some $S that you want to exchange for other tokens? Even some Meme coins? Go to the Shadow exchange interface, select your token, approve the transaction, and confirm. Although this operation does not earn points, you can trade your favorite tokens.

Additional rewards: You can also stake on Shadow. Convert your assets into $SHADOW, go to the $xShadow tab, convert $SHADOW into $xSHADOW, and then stake. This way, you can earn rewards weekly.

7. Deposit assets on Rings and obtain scUSD

Rings offers a yield-bearing stablecoin scUSD. Deposit USDC to mint scUSD, then stake it as stkscUSD to earn approximately 5.5% annual yield while accumulating passive airdrop points.

8. Stake $S on mySonic

Unlike staking $S to obtain liquidity tokens (such as stS), staking on mySonic does not provide liquidity tokens as rewards. Simply choose a node and stake your $S to earn approximately 5.5% returns. While decent returns can be obtained, this action will not earn airdrop points.

9. Additional rewards: Increase earnings through Magpie

After becoming familiar with trading and staking, you can take it a step further with Magpie Boosts to earn Eggs (Magpie points) for its airdrop. For example, you can deposit scUSD into the Euler vault to earn additional returns and collect Magpie rewards.

The above operations are both simple and can earn rewards and airdrop points, while simulating the functions of traditional banks - but you are using Web3 tools, such as wallets and dApps.

DeFi does not have to be daunting. Sonic makes it easy for everyone to explore and enjoy.

Have fun!