Andre Cronje, the DeFi king and CTO of Sonic Labs, announced via Twitter that the Sonic mainnet will officially launch this December, inviting developers to build applications on its ecosystem. With the ongoing development of Sonic, $FTM has recently shown strong performance, surging over 40% in the past month.
(Background:
Andre Cronje proclaims the arrival of the “decentralized credit” era: Sonic enters the $11 trillion unsecured lending market)
(Additional Background:
Fantom launches new L1 network Sonic: $FTM will be converted 1:1 into $S tokens, seamlessly connecting to Ethereum… Can it reverse the downward trend?)
Article Directory:
– AC promotes the performance of its public chain and developer incentive program
– FTM has surged over 40% in the past month
– AC is a controversial figure
On October 25, last year, the Fantom Foundation announced the launch of its latest Layer 1 blockchain, Sonic, aimed at enhancing scalability and performance. On September 6 of this year, the Sonic testnet officially went live. Today, Andre Cronje (AC), the CTO of Sonic, tweeted that the Sonic mainnet will officially launch in December, while also inviting developers to build applications within its ecosystem.
In his tweet, AC promoted the performance of the Sonic network, highlighting that up to 90% of transaction fees will be returned to developers, with transactions per second (TPS) exceeding 10,000, transaction finality (TTF) around 1 second, and support for native stablecoins. He is also committed to developing a new native bridging technology called Sonic Gateway to significantly enhance the security and convenience of transferring assets from other chains.
Additionally, Sonic aims to encourage developers to build applications on its ecosystem by introducing a large-scale incentive program, which includes the Sonic Boom bounty program that will offer up to 71.43 million $FTM (currently valued at approximately $5 million) as rewards. At the end of June, Sonic Labs also announced a fund of 200 million Sonic native tokens ($S, approximately $12 million) as an innovator fund to support new applications and native partners migrating to Sonic.
At the beginning of September, AC wrote on Medium that Sonic introduced a credit scoring mechanism that can provide credit ratings for any address, potentially making it the first public chain to unlock the $11.3 trillion market (the global unsecured loan market), leading the community to anticipate the emergence of decentralized credit applications.
While details are yet to be revealed, it is expected that the official team will adopt subsidy policies to attract users, and interested parties can keep an eye on updates.
Further Reading:
Andre Cronje proclaims the arrival of the “decentralized credit” era: Sonic enters the $11 trillion unsecured lending market.
At the TGE, $FTM will be convertible 1:1 into $S, facilitating a seamless transition to the new network. With the ongoing development of Sonic, $FTM has shown strong performance recently. According to CoinGecko data, $FTM surged from a low of $0.6168 last night to a high of $0.7132, accumulating a rise of up to 15.6%. As of the time of writing, it is reported at $0.6923, with an increase of 8.6% in the last 24 hours and over 40% in the past month.
However, despite AC being the founder of several top crypto projects such as Fantom, Yearn Finance, and Keep3r Network, and designing the widely-used ve(3,3) token economic model in DeFi protocols, his past history is mixed, particularly criticized for launching products before they were fully tested. A notable example is the Eminence project, which suffered a loss of approximately $15 million due to premature release.
Moreover, while the on-chain credit market is full of potential, it also faces challenges. For instance, if a borrower has poor credit, they can simply switch to a new wallet to evade scrutiny, making unsecured loans on-chain difficult without KYC or effective penalty mechanisms.
Nonetheless, while unsecured loans may be challenging to implement, there could be opportunities to offer higher borrowing limits (higher LTV) and lower interest rates to active and creditworthy DeFi users. This is a trend worth noting as we follow Sonic’s innovative DeFi applications. Additionally, Aave is a strategic investor in Sonic Labs, suggesting that the platform may be among the first to introduce a credit scoring system, warranting close attention.
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