Why $SHADOW Shadow Exchange on $S @SonicLabs absolutely dominates Sonic on-chain activity?
This is for plebs who are new to the Sonic ecosystem and don't know which projects are the crown jewels of Sonic and probably the whole of Crypto.
Let's dive in 🧵🔻
✅What is Shadow Exchange?
It's a concentrated liquidity exchange built on $S Sonic.
It means you can provide liquidity within a specific price range for a pair making sure your funds are utilized to its max potential (and thus earn max rewards)
Shadow is built on @AndreCronjeTech's ve33 model.
✅What is ve33 model.
Basically you lock exchange token and vote for pools and in return you get rewards from the pool based on your voting power.
This @AndreCronjeTech's design powers exchanges like $AERO/ $VELO and countless others and $SHADOW on $S @SonicLabs.
✅How is Shadow different.
For other DEXs built on the same design, as soon as you lock your tokens, you become illiquid. Some circumvent this issue by having NFTs for locked tokens, which can be traded (better than being completely stuck with extremely low liquidity for locked tokens).
Shadow on Sonic introduced the X33 model, which is a liquid version of staked Shadow.
✅Why is the X33 design a genius move?
Foor is pegged to xShadow, and it's the best way to acquire more xShadow.
🔹1 Shadow = 1 xShadow
🔹1 X33 = 1.6 xShadow (minimum)
So each epoch protocol uses 100% of revenue to buy more x33 and get more xShadow on Sonic
while users can easily exit their locked positions via the X33 route.
✅Now some $Shadow metrics
Shadow accounts for
🔹More than 60% of on-chain volume on Sonic
🔹More than 80% of on-chain fees.
🔹More than 80% of all on-chain $S trades are routed via shadow liquidity pools.
🔹10B in volume
🔹35M in fees
🔹3M monthly in fee revenue
▶️Shadow is one of the top 10 holders' revenue-generating protocols in crypto!
✅What's Next for Shadow?
▶️V2 can be announced anytime (which would render aggregators obsolete)
▶️All major pools on Shadow are about to get a huge boost in terms of APRs (🤐 )
▶️Might be a strategic investment by the $S @SonicLabs
▶️Shadow tokens will have a huge burn in the future
All this and the $SHADOW on $S Sonic is at 10m mcap.
I think as soon as we see a reversal on Sonic, expect some crazy numbers for the exchange. The domination is going to go up.
In the future, you can expect this model to be expanded to other chains as well.
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