"Sonic's SHADOW Token Surges 348% in Meme War, Andre Cronje Endorses"

The DeFi token SHADOW, native to the Sonic ecosystem, has surged over 348% in the past seven days, recapturing the spotlight in the Meme War. The 7-day S token price also increased by 60%, while Sonic's total value locked (TVL) surged by over 500% in the past month. Notably, the liquidity pool annual percentage yield (APY) on Shadow Exchange, Sonic's native centralized liquidity layer and DEX, can reach up to 114,730%.

Andre Cronje, known as the "King of DeFi" and the founder of Yearn Finance, endorsed the project on Twitter. Sonic was originally Fantom, a low-cost EVM-compatible Layer1, and the S token is its native token, currently with a market cap of $25.7 billion. Shadow Exchange, Sonic's native centralized liquidity layer and DEX, has the SHADOW token as its native token, with a current market cap of $40.7 million.

The project employs a game theory mechanism, (3,3), which uses a high APY to attract holders to continuously stake and compound tokens. The team supports the price using liquidity assets they control and conducts buybacks when it falls below a threshold, creating a win-win situation with holders. However, if holders collectively exit, this mechanism can quickly collapse.

Another mechanism, ve(3,3), proposed by Andre Cronje in 2022, converts locked tokens into tradeable veToken NFTs to address liquidity issues. It also improves the AMM model to mitigate trading risks of different asset types and reduce friction between traders, liquidity providers, and holders. However, it still lacks an exit mechanism.

Shadow Exchange introduced an iterative version, x(3,3), which supports staking users to exit at any time without locking tokens. For more information on the project, please refer to the in-depth report "A 500% Surge in a Week, Understanding Sonic's 'DeFi Engine' Shadow Exchange".

It is essential to remind users that DeFi projects carry high risks, and participation should be approached with caution.