Yield-generating assets can enhance liquidity in the ecosystem. We are observing developments closely.
The rise of yield-generating stables like msUSD & smsUSD is exactly the kind of capital magnet @SonicLabs needs.
With @Main_St_Finance bringing a 100%+ collateralized, high-APY, on-chain stable to the table, the game changes for both users & the $S ecosystem.
Why? Because:
> Sticky Liquidity → Yield-bearing stables incentivize capital to stay on Sonic instead of hopping chains chasing APRs.
> Real Yield → 20%+ APY on a stable is an easy retail pitch, even normies understand “I put $1 in, I get $1.20+ back yearly”.
> Safer Exposure → 100%+ collateral ratio means reduced blow-up risk compared to undercollateralized models.
> Composability → msUSD can flow into Sonic’s DEXs, lending protocols, CLOBs, and LP vaults, turbocharging TVL & volume.
> Network Effects → Every extra $1 in msUSD creates more transactions, more fees, more burns for $S, and a healthier on-chain economy.
The killer combo?
Retail-friendly APYs + Sonic’s cutting-edge infra = a flywheel where TVL & $S demand feed each other.
If this scales like other yield-stables have on big L1s, Sonic could be looking at nine-figure TVL in stables alone.
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