SonicSwap is a community-driven decentralized exchange operating on the Findora network. The native token (SONIC) will be launched as the utility and governance vessel to grant access to many of the benefits and use cases planned for the future. Along with this comes the opportunity to partake in the governing of the project through voting rights alongside the community to shape the future of the platform and any major decisions that will impact its’ future. Daily operations, including proposal of pools, trading pairs, balancing, platform maintenance, business strategies, partnerships, marketing and other superficial changes, will be handled by the SonicSwap core team.

Our main goal in launching on the Findora network is to utilize what was already built by Findora developers and leverage technologies, such as ZK and programable privacy, to create a platform that can offer a full suite of user-friendly tools to not only help in the adoption of such technologies, but to offer unique and useful ways for everyone regardless of experience level or goals, to find what it is that they are striving for, and pursue it in a seamless manner with little-to-no friction on the learning curve.

To date, our uses, services, & core products — both present and future — will include (but will not be limited to):

• the decentralized exchange;
• yield instruments;
• cloud mining services;
• staking derivatives;
• governance;
• messaging services;
• launchpads;
• games, wagers, and raffles.

The following articles will detail more of the technical aspects of the platform and all the benefits the platform will be able to offer.

Fees and Rewards

Fees are added to every swap initiated on SonicSwap, the fees can comprehensively be broken down (as in many AMM protocols) into two parts — one portion going to the liquidity providers and the remaining portion going to the SONIC treasury to help with maintaining the platform along with funding our continued growth and building future products and services.

• 0.25% is taken on every swap made on SonicSwap — 0.20% of this fee is immediately redistributed to users in the form of LP rewards, while 0.05% of this fee is sent to the SONIC treasury;
• deposit fees will remain at 1%;
• withdrawal fees will remain at 0%;
• future single staking vaults will be subject to small fees — to be discussed and voted on by the community in the future.

Rewards

Staking rewards are given out to users as an incentive for providing and staking liquidity with SonicSwap. Total reward amounts are pre-determined and are awarded in equal amounts daily. The amount of rewards an LP stands to receive is entirely based upon how many LP tokens a user has and their share of the pool.

The MasterChef (distributor) contract is in charge of handling all rewards on Findora Mainnet.

Liquidity Pools

Constant Product Pools
As with many classic DeFi protocols, Constant Product pools were the first liquidity pool type to debut in DeFi and utilize the now-classic formula x * y = k, where x and y are the assets in a given pool and k is the constant. This means these pools must enforce a 50/50 equal value weighting between the two assets in the pool. When providing liquidity, users will be forced to add equal value of both assets so that k remains constant, always.

Stable Pools
Stable pools are a type of liquidity pool best suited for trading like-kind assets, such as stablecoins. Assets that are closely correlated in price (like stablecoins) get their own pool type where it is much more cost-effective to trade against, with minimal volatility and slippage. Though most common for stable pairs (such as USDC/USDT, etc.), they can be viable for any like-kind asset, such as SONIC/SONICx or ETH/wETH, for example.

Yield Farms
Yield farms are another concept that originated in early DeFi and have since become integral part of the ecosystem — combined with liquidity pools, yield farms offer yet another way for users to stack yield.

Yield farms utilize Liquidity Provider tokens, which are given to liquidity providers (LPs) when providing liquidity to a pool. These tokens represent a LP’s portion (in percentage) of a specific pool and can be “staked” in a yield farm. LPs that choose to stake their LP tokens in a specific farm earn additional SONIC rewards on top of the trading fees that are already accruing. Of course, these tokens can also just be held after creating an liquidity pair as well to accumulate the swap fees only — yield farms are simply an additional way to utilize yor Liquidity Pair.

Tokenomics

Our new tokenomics is a fairly simple model we’ve created to not only ensure that users benefit from their LP positions in reward pools, but to also incentivize longer staking times — creating more stability on the platform, while helping lower the max supply as a result. As an immediate example, user A would deposit into liquidity pairs, then receive LP tokens to be deposited into reward pools. When deposited, the rewards accumulated can then be claimed. Upon claiming, user A still receives 100% of their rewards while burning tokens directly from the max supply upon initiating the claim relative to their time in the pools before claiming. So in short, the longer a participant remains in the pools without claiming or removing LPs, the more rewards they receive and the more they burn directly from the max supply without affecting any of their own personal rewards. We believe this model creates a fair yet incentivized method for all participants to help in the stability of the platform, supply control, and improvement of their own liquidity positions at no personal cost to themselves or others. This can have an effect of not only creating stability, incentivizing users to remain in pools longer, but also a compounding effect, while claiming their rewards, should they choose to recompound back into pools — it would create a larger burn directly to max supply on each consecutive rewards claim.

Additionally, for any products or services we launch that utilize SONIC as a method of payment, all SONIC tokens received are to be burned further lowering supply. This could be subject to change in the future at the request and successful voting of the community to have tokens allocated for use elsewhere.

Our tokenomics model at the core remains unchanged: provide utility for SONIC & burn 100% of tokens received as methods of payment of said use cases, leverage built-in protocols to lower supply and incentivize platform stability, & provide long-term staking instruments to further stability.

TLDR;

User deposits liq. — receives LP — deposits LP into reward pools — claims rewards — receives 100% of rewards — contract executes burning of “X” amount of tokens directly from max supply { relative to time in reward pools without claiming or removing LP }

Token Supply

100 million SONIC tokens

Token Allocation

• core team will receive 10% of the supply divided equally amongst members to only be used in the funding of the platform and ensuring there are sufficient funds secured for lasting development and maintenance;
• liquidity/partnerships/launchpads — an additional 10% of supply will be allocated for use in providing liquidity directly to trading pairs, ensuring there is sufficient liquidity on-hand to avoid large price impacts to users when swapping. Additionally, it can be used to fund new pools with SONIC across other platforms, as well as rewards for our future launchpads with collaboration of new projects launching on Findora;
• 80% of the supply will be rewards, steadily released as emissions to users with staked LP positions.

Cloud Mining (coming soon to Findora)

Our Cloud Mining service is a product/service we’ve created to run in tandem with our platform. It gives users another method to put their reward tokens to good use — while also burning supply — , as all tokens (100%) used in the payments for Cloud Mining services are burned.

See our Cloud Mining info page for more details at SonicCloud.tech!

Conclusion

The future possibilities of SonicSwap are endless, and with that, the choice and influence will reside with the community. We will keep working hard in creating a project to set a new standard among DEX tokenomics. However, the ultimate destination of SonicSwap will rest in the diamond hands of users, as the way all decentralized ecosystems intended. We plan to continue delivering new products and services and will add new articles to this documentation as we progress forward in building not only to continue updates with new changes made, but also to show more perspective into the details of the project.

We’ve received numerous requests to add the PoW coins mined via our cloud mining website to our DEX/yield farm. We weren’t able to bring all of the PoW coins that we offer for Cloud Mining over to Harmony Network, however ETC, ZIL, DGB, FLUX, & XEC could be successfully wrapped & added to the SonicSwap.IO platform. Now, not all of them are very easy to bridge over (especially considering that Binance Bridge has been discontinued, so people who have access to Binance Global are left to be the luckiest ones), however the processes are fairly simple & relatively cost-effective, so you’ll be able to repeat them on your own after you do it once or twice with these tutorials.

Below you’ll be able to find guaranteed methods of bringing your cloud-mined assets to Harmony:

1. ETC Mainnet to ETC Harmony;
2. ZIL Mainnet to ZIL Harmony;
3. DGB Mainnet to DGB Harmony;
4. FLUX Mainnet to FLUX Harmony;
5. XEC Mainnet to XEC Harmony.

Please use any other methods at your own risk!

For experienced users: essentially all we need is BEP-20 versions of the PoW tokens on MetaMask (Smart Chain) & Harmony Horizon bridge. We can get BEP-20 versions by depositing some of these coins into Binance Global & withdrawing them as BEP-20 straight to MetaMask (Smart Chain) or following the guides below (instant exchange of native coins via SimpleSwap & ChangeNOW to transitional BEP20 BUSD/BNB, then swapping back via MetaMask swap function and bridging to Harmony via Horizon bridge). DGB has to go through Ren Bridge & Horizon (Harmony) bridge. FLUX can be bridged to BSC within Zelcore wallet & then brought to Harmony via Horizon bridge.

VERY IMPORTANT: before proceeding with anything below, make sure to add Binance Smart Chain to your Metamask & have some BNB (BEP20) on that account for gas & fees. For adding the destination chain (Harmony) to your MetaMask, you can follow this tutorial. To bridge tokens back to their native state, please follow the steps below in reverse order.

I. ETC (Mainnet) to bscETC (Harmony)

*bridging native ETC coins from Trust Wallet to MetaMask on Harmony Mainnet via ChangeNOW & Horizon by Harmony bridge.

1. Head to ChangeNOW (non-custodial instant exchange);
2. For “You Send” field choose “ETC” & for “You Get” field choose “BUSD” (bsc) or “BNB” (bsc). The reason why we use BUSD (bsc) or BNB (bsc) in this case is because both BUSD & BNB are confirmed as BEP-20 tokens on ChangeNOW — we need a transitional BEP-20 token (BNB or BUSD in this case) in order for this method to work (we’ll be using MetaMask’s swap function later to swap BNB or BUSD back to ETC);
3. Input the amount of ETC you would like to swap, click on “Exchange” button;
4. Switch your MetaMask Chrome Extension to (Binance) Smart Chain Network;
5. On ChangeNOW, under “Recipient Wallet”, please insert your (Binance) Smart Chain MetaMask wallet address & click on “Next”;
6. Read and agree to the ChangeNOW Terms of Use, Privacy Policy and Risk Disclosure Statement & confirm the details of your swap by pressing “Confirm” button;
7. From your Trust Wallet, send ETC you would like to bring over to Harmony & wait for exchange to finish;
8. Once your exchange has been completed, please head to your MetaMask & press the “Swap” button;
9. Swap your BNB/BUSD back to ETC;
10. Head to Horizon by Harmony bridge, click on “Binance” button in the top right corner & “MetaMask” right under it;
11. On the top left corner, pick “Binance > ONE” & “BEP20” right under it;
12. Beside “BEP20 token address”, click on “use custom address”;
13. Fill in “Input BEP20 token address” field with BSC contract of ETC — 0x3d6545b08693dae087e957cb1180ee38b9e3c25e & click on “Change token” blue button;
14. Down below, in the “ETC Amount” field, please input the amount of ETC you would like to bridge over from (Binance) Smart Chain to Harmony;
15. Down below, in the “ONE Address” field, please input your destination Harmony address in 0x format. For ease of use, we recommend to click on “Use my address” option that will let you use the same wallet you are bridging from.
16. Press “Continue” & confirm the terms of Horizon by Harmony bridge;
17. Approve the amount of ETC once again & press “Continue”;
18. Confirm the fee & MAKE SURE YOU HAVE ENOUGH BNB TO COVER IT. Read the instructions in red & press “Confirm”;
19. MetaMask will prompt you to confirm several transactions necessary for completion of the bridging process. Try not to leave your PC until the entire bridging process is completed — it will be hard & time-consuming to recover your stuck assets if one of the transactions times out on you (it’s also not guaranteed that Harmony bridge team will be able to recover your assets).
20. Switch to Harmony Network on your MetaMask (if you don’t have Harmony on your MetaMask yet — here is the tutorial) to add bscETC to the list of your HRC20 tokens (contract address of bscETC on Harmony is 0x8cd3A0D9AF6634CF9B3F72Ea08087D7471dDE41d).
21. CONGRATULATIONS — YOU CAN FARM WITH YOUR CLOUD-MINED ETC ON SONICSWAP.IO NOW!

II. ZIL (Mainnet) to bscZIL (Harmony)

*bridging native ZIL coins from Trust Wallet to MetaMask on Harmony Mainnet via ChangeNOW & Horizon by Harmony bridge.

1. Head to ChangeNOW (non-custodial instant exchange);
2. For “You Send” field choose “ZIL” & for “You Get” field choose “BUSD” (bsc) or “BNB” (bsc). The reason why we use BUSD (bsc) or BNB (bsc) in this case is because both BUSD & BNB are confirmed as BEP-20 tokens on ChangeNOW — we need a transitional BEP-20 token (BNB or BUSD in this case) in order for this method to work (we’ll be using MetaMask’s swap function later to swap BNB or BUSD back to ZIL);
3. Input the amount of ZIL you would like to swap, click on “Exchange” button;
4. Switch your MetaMask Chrome Extension to (Binance) Smart Chain Network;
5. Under “Recipient Wallet”, please insert your (Binance) Smart Chain MetaMask wallet address & click on “Next”;
6. Read and agree to the ChangeNOW Terms of Use, Privacy Policy and Risk Disclosure Statement & confirm the details of your swap by pressing “Confirm” button;
7. Send ZIL you would like to bring over to Harmony & wait for exchange to finish;
8. Once your exchange has been completed, please head to your MetaMask & press the “Swap” button;
9. Swap your BNB/BUSD back to ZIL;
10. Head to Horizon by Harmony bridge, click on “Binance” button in the top right corner & “MetaMask” right under it;
11. On the top left corner, pick “Binance > ONE” & “BEP20” right under it;
12. Beside “BEP20 token address”, click on “use custom address”;
13. Fill in “Input BEP20 token address” field with BSC contract of ZIL— 0xb86abcb37c3a4b64f74f59301aff131a1becc787 & click on “Change token” blue button;
14. Down below, in the “ZIL Amount” field, please input the amount of ZIL you would like to bridge over from (Binance) Smart Chain to Harmony;
15. Down below, in the “ONE Address” field, please input your destination Harmony address in 0x format. For ease of use, we recommend to click on “Use my address” option that will let you use the same wallet you are bridging from.
16. Press “Continue” & confirm the terms of Horizon by Harmony bridge;
17. Approve the amount of ZIL once again & press “Continue”;
18. Confirm the fee & MAKE SURE YOU HAVE ENOUGH BNB TO COVER IT. Read the instructions in red & press “Confirm”;
19. MetaMask will prompt you to confirm several transactions necessary for completion of the bridging process. Try not to leave your PC until the entire bridging process is completed — it will be hard, if not impossible, to recover your stuck assets if one of the transactions times out on you.
20. Switch to Harmony Network on your MetaMask (if you don’t have Harmony on your MetaMask yet — here is the tutorial) to add bscZIL to the list of your HRC20 tokens (contract address of bscZIL on Harmony is 0x0341D02C0fD5439576742750e6F2a2C0993A520b).
21. CONGRATULATIONS — YOU CAN FARM WITH YOUR CLOUD-MINED ZIL ON SONICSWAP.IO NOW!

III. DGB (Mainnet) to bscrenDGB (Harmony)

*bridging native DGB coins from Trust Wallet to MetaMask on Harmony Mainnet via Ren Bridge BETA & Horizon by Harmony bridge.

1. Head to Ren Bridge BETA;
2. For “Send” field choose “DGB” & for “Destination” — “Binance Smart Chain”;
3. Switch your MetaMask Chrome Extension to (Binance) Smart Chain Network;
4. Click on “Connect Wallet” button, choose “MetaMask Wallet”, then “Continue with MetaMask”;
5. Click “Next”;
6. In “Enter an amount” field you can enter the amount of DGB coins you’re willing to bridge. This field is optional & it calculates estimates on fees & amount of DGB you’ll receive after bridging to BSC Network;
7. STOP HERE! Please make sure you have enough BNB (BEP20) on your MetaMask for gas/fees;
8. Once you confirm all the details, click on “I acknowledge the fees and that this transaction requires BNB” & then “View DGB Gateway Address”;
9. You’ll see the warning saying that the gateway address will only be active for particular amount of hours. Do not proceed any further unless you know you’ll be able to complete the transaction within the given time window!
10. Click on “I can complete this transaction within the time” and then “Continue”;
11. You’ll be given a DGB wallet address in segwit format (starting with S) to send your DGB to. If sending from Trust Wallet, your DGB wallet address will be in native segwit format (staring with dgb1) but no need to worry — you can still send your DGB from native segwit to segwit with no issues!
12. Once the DGB is sent to the gateway wallet, you’ll have to wait for the transaction to be fully confirmed (50 confirmations needed, as of today). Ren Bridge shows the real-time progress on amount of confirmations to make it as user-friendly & stress-free as possible.
13. Once Ren Bridge receives your DGB, you’ll be able to click on “Mint renDGB” blue button. You’ll be prompted to confirm spending your gas BNB in MetaMask — please confirm the transaction.
14. Once renDGB minting to your BSC MetaMask address is completed, you’ll be able to see the balance by pressing on “Add renDGB Token to MetaMask” button. Contract address for renDGB can be found here.
15. NOW WE’RE BRIDGING OUR renDGB TO HARMONY! Feel free to close Ren Bridge tab.
16. Head to Horizon by Harmony bridge, click on “Binance” button in the top right corner & “MetaMask” right under it;
17. On the top left corner, pick “Binance > ONE” & “BEP20” right under it;
18. Beside BEP20 token address, click on “use custom address”;
19. Fill in “Input BEP20 token address” field with BSC contract of renDGB — 0x31a0D1A199631D244761EEba67e8501296d2E383 & click on “Change token” blue button;
20. Down below, in the “renDGB Amount” field, please input the amount of renDGB you would like to bridge over from Binance Smart Chain to Harmony;
21. Down below, in the “ONE Address” field, please input your destination Harmony address in 0x format. For ease of use, we recommend to click on “Use my address” option that will let you use the same wallet you are bridging from.
22. Press “Continue” & confirm the terms of Horizon by Harmony bridge;
23. Approve the amount of renDGB once again & press “Continue”;
24. Confirm the fee & MAKE SURE YOU HAVE ENOUGH BNB TO COVER IT. Read the instructions in red & press “Confirm”;
25. MetaMask will prompt you to confirm several transactions necessary for completion of the bridging process. Try not to leave your PC until the entire bridging process is completed — it will be hard, if not impossible, to recover your stuck assets if one of the transactions times out on you.
26. Switch to Harmony Network on your MetaMask (if you don’t have Harmony on your MetaMask yet — here is the tutorial) to add bscrenDGB to the list of your HRC20 tokens (contract address of bscrenDGB on Harmony is 0xE014326df69c25FA96d90CcD6Eb196c9145528fB).
27. CONGRATULATIONS — YOU CAN FARM WITH YOUR CLOUD-MINED DGB ON SONICSWAP.IO NOW!

IV. FLUX (Mainnet) to bscFLUX (Harmony)

*bridging native FLUX coins from Trust Wallet to MetaMask on Harmony Mainnet via Fusion within Zelcore Wallet & Horizon by Harmony bridge.

1. Move your FLUX & some BNB (for gas) to Zelcore Wallet (if it’s not there yet);
2. In Zelcore, go to “Apps” -> “Fusion”;
3. For “Choose Sell Asset” please pick “FLUX”, for “Choose Buy Asset” — “FLUX-BSC”;
4. Input the amount of FLUX you would like to swap, click on “Swap!” button;
5. Once your swap is completed, find FLUX-BSC in the list of your Zelcore assets & send it to your (Binance) Smart Chain MetaMask wallet address;
6. Head to Horizon by Harmony bridge, click on “Binance” button in the top right corner & “MetaMask” right under it;
7. On the top left corner, pick “Binance > ONE” & “BEP20” right under it;
8. Beside “BEP20 token address”, click on “use custom address”;
9. Fill in “Input BEP20 token address” field with BSC contract of FLUX — 0xaff9084f2374585879e8b434c399e29e80cce635 & click on “Change token” blue button;
10. Down below, in the “FLUX Amount” field, please input the amount of FLUX you would like to bridge over from (Binance) Smart Chain to Harmony;
11. Down below, in the “ONE Address” field, please input your destination Harmony address in 0x format. For ease of use, we recommend to click on “Use my address” option that will let you use the same wallet you are bridging from.
12. Press “Continue” & confirm the terms of Horizon by Harmony bridge;
13. Approve the amount of FLUX once again & press “Continue”;
14. Confirm the fee & MAKE SURE YOU HAVE ENOUGH BNB TO COVER IT. Read the instructions in red & press “Confirm”;
15. MetaMask will prompt you to confirm several transactions necessary for completion of the bridging process. Try not to leave your PC until the entire bridging process is completed — it will be hard, if not impossible, to recover your stuck assets if one of the transactions times out on you.
16. Switch to Harmony Network on your MetaMask (if you don’t have Harmony on your MetaMask yet — here is the tutorial) to add bscFLUX to the list of your HRC20 tokens (contract address of bscFLUX on Harmony is 0x4d5eCb88A45AbE5fc5572E8DaF4C41536C6F0C0c).
17. CONGRATULATIONS — YOU CAN FARM WITH YOUR CLOUD-MINED FLUX ON SONICSWAP.IO NOW!

V. XEC (Mainnet) to bscXEC (Harmony)

*bridging native XEC coin from ViaWallet to MetaMask on Harmony Mainnet via SimpleSwap & Horizon by Harmony bridge.

1. Head to SimpleSwap (non-custodial instant exchange);
2. For “You send” field choose “XEC” & for “You get” field choose “BNB” (BEP-20). The reason why we only use BNB in this case is because BUSD isn’t confirmed as a BEP-20 token on SimpleSwap — we need a BEP-20 transitional token (BNB in this case) in order for this method to work (we’ll be using MetaMask’s swap function later to swap BNB back to XEC);
3. Input the amount of XEC you would like to swap, click on “Exchange” button;
4. Switch your MetaMask Chrome Extension to (Binance) Smart Chain Network;
5. Under “Enter the wallet address”, please insert your (Binance) Smart Chain MetaMask wallet address & click on “Next”;
6. Confirm the details of your swap by pressing “Create an exchange” button;
7. Send XEC you would like to bring over to Harmony & wait for exchange to finish;
8. Once your exchange has been completed, please head to your MetaMask & press the “Swap” button;
9. Swap your BNB back to XEC (may need to add by its’ contract address — 0x0ef2e7602add1733bfdb17ac3094d0421b502ca3);
10. Head to Horizon by Harmony bridge, click on “Binance” button in the top right corner & “MetaMask” right under it;
11. On the top left corner, pick “Binance > ONE” & “BEP20” right under it;
12. Beside “BEP20 token address”, click on “use custom address”;
13. Fill in “Input BEP20 token address” field with BSC contract of XEC — 0x0ef2e7602add1733bfdb17ac3094d0421b502ca3 & click on “Change token” blue button;
14. Down below, in the “XEC Amount” field, please input the amount of XEC you would like to bridge over from (Binance) Smart Chain to Harmony;
15. Down below, in the “ONE Address” field, please input your destination Harmony address in 0x format. For ease of use, we recommend to click on “Use my address” option that will let you use the same wallet you are bridging from.
16. Press “Continue” & confirm the terms of Horizon by Harmony bridge;
17. Approve the amount of XEC once again & press “Continue”;
18. Confirm the fee & MAKE SURE YOU HAVE ENOUGH BNB TO COVER IT. Read the instructions in red & press “Confirm”;
19. MetaMask will prompt you to confirm several transactions necessary for completion of the bridging process. Try not to leave your PC until the entire bridging process is completed — it will be hard, if not impossible, to recover your stuck assets if one of the transactions times out on you.
20. Switch to Harmony Network on your MetaMask (if you don’t have Harmony on your MetaMask yet — here is the tutorial) to add bscXEC to the list of your HRC20 tokens (contract address of bscXEC on Harmony is 0x16fAD325815Dc0DCc6B9d98c6203a70915b2edA9).
21. CONGRATULATIONS — YOU CAN FARM WITH YOUR CLOUD-MINED XEC ON SONICSWAP.IO NOW!

Our raffle series combines both a token prize and an NFT prize!
This model allows for the winner to receive 25% of the pot as a prize (in tokens), along with the NFT and some additional ONE, with the remaining 75% being divided between the NFT beneficiary, receiving 25%, and the final 50% being burned. This benefits all token holders regardless of win or lose, and provides the artists with a chance to showcase and promote their work, along with the possibility of making a profit.

We really believe in all use cases for the SONIC token, in some way or another, to benefit the overall community, and our raffle is just another case of this in action.

It should also be noted that our raffle tickets themselves fall under the NFT category as they are, in fact, HRC721, meaning they are not just you ordinary raffle or lottery draw ticket but something that we wish to pursue later in the future to also build off of, to then create even further surprise use cases for the old tickets themselves. So don't just go throwing away those old tickets just yet! They may come in handy for a future event! SonicSwap product utility is ever-expanding!

Feel free to check our raffle out here: https://sonicswap.io/#/raffle. Good luck!

“SonicSwap was an idea — an idea created to simply build on and support both the Harmony network and the surrounding community. The next priority was tokenomics, creating a sustainable environment for both liquidity providers and users alike.

With the focus on tokenomics and community involvement, we hope to build something that all can participate in and contribute to, while catering to the needs of users and providing a more stable portfolio growth to liquidity providers.”

With that in mind, we have followed the model of previous projects we admire and decided to implement some improvements to our own tokenomics model. Our first concerns were to mitigate token inflation and the “farm-and-sell” attitude that has continuously followed many DEX projects. These issues have been addressed through a variety of means that will be implemented as the project progresses and as the community voices their opinions through voting governance practices on which exact implementations they would like to see.

Upon the initial launch, our base foundational layer of tokenomics will be 90% locked rewards and 10% unlocked. Just like in other projects, this model allows earlier adopters to be greatly rewarded, while not subjecting the value of their tokens to quickly diminish.

For claiming rewards, we have implemented a burning feature to burn a certain percentage of the tokens depending on the amount claimed. For example:

1,000 tokens claimed –> 1% burnt
2,000 tokens claimed –> 2% burnt
3,000 tokens claimed –> 3% burnt
10,000 tokens claimed –> 10% burnt
Every additional 10,000 tokens claimed –> 5% increase in burn fees

These burns, as well as burning from trading fees and developer burns, made though community votes, also will create the foundation which will enable SONIC tokens value to increase over time. It’s a simple yet very effective countermeasure for the initial inflation of the token. It also puts some limitations on large liquidity providers’ ability to farm and sell tokens leaving smaller providers vulnerable to price depreciation. So as time passes, the tokens minted will lower, yet the tokens burned will always remain increasing. This creates effective means to mitigate the desire to farm and sell long term as the tokens value will grow.

Unfortunately, this alone cannot be relied upon for the guarantee of the token’s success, which also lies in token’s use cases. As for many projects, a solid use case is not always that evident — we do not plan to follow down that same path. We have many pre-thought use cases that will be periodically put to vote to see which will be implemented next. Our first addition will be the “SonicCitizen” — a pool that locks SONIC tokens permanently, for which “the Citizen” is rewarded with fully unlocked tokens rewarded from the pool with a stable and generous APR%. Additionally, these token sacrifices, which can also be viewed essentially as a version of “burning”, will help to encourage the growing value of SONIC and create more of a stable value throughout the project’s life span, all the while the user can effectively claim a form of passive income indefinitely.

Tokens are distributed in 2 phases:

During phase 1 (approximately 2 weeks) a base emissions rate of 1 token per block will be issued with a multiplier of 128x to reward early liquidity providers. Phase 2 — base emissions rates will remain unchanged but multipliers will be reduced by half per each consecutive period.

Reward tokens earned will be unlocked on a timed-release schedule with the unlocked rewards percentage being 10% and locked tokens being 90%. This type of tokenomics is implemented with the aim to incentivize users to compound and create exponential and sustainable growth rather than redeem and sell rewards out of fear of a depreciating reward token, leaving other holders exposed to volatility.

Single Staking

The single staking (solo token reward pools) have been around for quite some time and aren’t new to the industry, however we have noticed that many projects do not seem to implement more then one version of this type of pool. SonicSwap will be implementing many versions of this idea with many different results depending on the users’ future goals. One of the first examples of which we will implement is a time lock pool of 10 days upon withdrawal request, with 100% of rewards being unlocked after the 10-day period. More favorable APR percentages will always be given to the single staking pools and SONIC pool pairings to promote utility and appreciation value. With these multiple pools in place, with a variety of uses for providers and holders, depending on their personal investment strategies, will give users a chance to create a more customized experience to deliver results based on their personal tastes.

Token Burns

All pools in SonicSwap will be subject to token burns — this was enabled to allow for a constant burning value that will eventually outweigh the tokens minted, creating a foundational deflationary token. With all users and providers contributing to these burning fees, it creates a level playing field for all providers, users, and holders regardless of their personal liquidity and prevents systematic large scale claiming and selling of tokens without some cost to the claimer and benefit to the community.

2/3rd of the trading fees also collected will stay in the liquidity pools and single staking to help with alleviating impermanent loss to liquidity providers. The other 1/3rd of fees collected will be used to buy SONIC tokens which will immediately be burned causing prices to rise as supplies diminish. In time with more users and liquidity providers, SonicSwap will quickly become a deflationary reward token.

Core Development Tokens

The founders and development team will receive 10% of the total supply for the first 5 years with an immediate allowance of 20% of the value of the overall 10% from total supply.

An additional 5% of the supply will be utilized for the liquidity funds, monthly lottery pool, quarterly giveaways, and competition rewards.

The remaining 5% will be locked in a community fund and time-released monthly for the first 5 years, to be voted on by the community for its desired use that best meets the interests of the community. Store in treasury/token burn/add to lottery pool/create competition would be general examples of community voting options.

Total issuance over 5 years = 500,000,000 tokens.

20,000,000 pre-minted tokens will in total add up to 4% of total supply and and will be divided into four addresses two being community driven and two being development and founders, meaning in total only 2% of total supply will be allocated to dev/founder wallets.

These funds will be used in the immediate development of the project guaranteeing continuous usability of the service including marketing promotion and maintenance, upgrades, etc. The main goal of SonicSwap is to create a sustainable environment, with smart tokenomics being at the forefront. More incentive is put toward long term continuous growth rather than “get-rich-quick” methods leading to extremely volatile environments leaving many rather apprehensive to participate in decentralized finance. We aim to solve the issue, of inflationary qualities of reward tokens and create more peace of mind for holders, and that the rewards they earned will hold value among users.

Fees

Fees are set at 0.3% per trade. Half are sent to SonicCity (SushiMaker base). Fees collected are converted to the SonicSwap token through the use of the ONE/SONIC pair. Converted SonicSwap tokens are then burnt, causing the price to appreciate as supply diminishes.

Liquidity

Liquidity Providers can select tokens and add corresponding liquidity to their pool. If a pool does not exist, you will be prompted to create one. You will be asked to set the initial price. If set incorrectly, loss by arbitrage will happen, so make sure you set the price correctly. Once you have provided liquidity, if the staking pool for that pair exists, you may stake your liquidity to earn more rewards. You may withdraw your rewards and liquidity anytime you wish. There are multiple staking pools available, where users may stake their corresponding liquidity token and earn their share of the fees collected in the form of SonicSwap Tokens which they can either compound, hold, or sell.

Liquidity Deposit Fees

Liquidity Deposit fees are currently set to 0%.

Liquidity Withdrawal Fees

• 25% fee for withdrawals of LP tokens in the same block this is to prevent abuse from flash loans;
• 8% fee if a user deposits and withdraws in between same block and 59 minutes;
• 4% fee if a user deposits and withdraws after 1 hour but before 1 day;
• 2% fee if a user deposits and withdraws between after 1 day but before 3 days;
• 1% fee if a user deposits and withdraws after 3 days but before 5 days;
• 0.5% fee if a user deposits and withdraws if the user withdraws after 5 days but before 2 weeks;
• 0.25% fee if a user deposits and withdraws after 2 weeks;
• 0.1% fee if a user deposits and withdraws after 4 weeks.

50/50 lottery (Coin Toss)

SONIC tokens will be contributed to, as a based fund, to a monthly 50/50 lottery. The winning wallet is given 50% of the funds and the remaining 50% is then burned.

Competitions, Giveaways & Community Votes

Random giveaway events, along with charitable donations, will take place from time to time to promote the use of SonicSwap.IO and show appreciation to the community by giving back.

Additionally, competitions will be announced to the community regularly, as well as scheduled monthly votes on decisions regarding the treasury funds to be released. This aspect will be implemented to give the community as a whole a voice in the decision-making process of SonicSwap and its’ future direction. For example, if users were not satisfied with the level of market awareness, a vote could be made for further marketing campaigns. Other examples are to have more/less tokens burned, added to the lottery pool, or even made as a donation to a charitable fund.

The ultimate decision of the funds will rely on the majority vote of the community as a whole, which brings an aspect of true participation from users and a responsibility to all those who take part.

Conclusion

The future possibilities of SonicSwap are endless, and with that, the choice and influence will reside with the community. We will keep working hard in creating a project to set a new standard among DEX tokenomics. However, the ultimate destination of SonicSwap will rest in the diamond hands of users, as the way all decentralized ecosystems intended.

Additional in-depth documents will be published soon after the launch to continue updates with new changes made, as well as to show more perspective into the details of the project.

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