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WE-Launch
AAVE's New Proposal Horizon Faces Backlash: Community Questions New Token and Profit-Sharing Mechanism
Original Title: "Aave Proposes New Plan Horizon to Launch RWA Product, Community Reacts Strongly, Founder Responds Urgently..."
Original Author: Weilin, PANews
Aave, which has always been highly praised by the community, recently sparked an unprecedented wave of community scrutiny.
Aave Labs recently launched a new plan called Horizon, aiming to develop a product that enables institutional adoption of decentralized finance through Real World Assets (RWA). This product would allow institutions to use tokenized money market funds (MMFs) as collateral to borrow at scale in RWA products denominated in USDC and GHO. Aave Labs hopes that through this product, it can further bridge the gap between traditional finance and DeFi.
However, in the days following the proposal's release, the community showed strong opposition to the Horizon plan, especially questioning the potential issuance of a new token and the profit distribution mechanism of Horizon.
Community Approval Awaited for "Temperature Check," Profit Distribution and New Token Allocation Become Controversial
According to the introduction in the Temperature Check proposal, Aave Labs stated that the demand for tokenized Real World Assets (RWA) is on the rise due to the benefits of tokenization in enhancing liquidity, reducing costs, and enabling programmable transactions around the clock—making traditional assets more easily accessible on-chain. Tokenized U.S. Treasuries have grown by 408% year on year, reaching $4 billion. In this process, institutional adoption is accelerating, and it is expected that the on-chain RWA scale in the next 10 years could reach $16 trillion.
To meet this growth demand, Horizon—a project initiated by Aave Labs—proposes to launch an RWA product to operate as a permissioned instance of the Aave protocol. Horizon will allow institutions to use tokenized money market funds (MMFs) as collateral to borrow at scale in USDC and GHO, unlocking stablecoin liquidity and expanding institutional access to DeFi.
Upon receiving approval from the Aave DAO, Horizon's RWA product will be launched as a permissioned instance of Aave V3 and will migrate to a customized Aave V4 deployment when possible. To support long-term alignment with the Aave DAO, Horizon will implement a structured profit-sharing mechanism, allocating 50% of revenue to the Aave DAO in the first year and driving ecosystem growth through strategic incentives.
According to Aave Labs' introduction, Horizon will have multiple key design components, including a licensed RWA token supply and redemption mechanism, permissionless USDC and GHO supply functionality, stablecoin borrowing for eligible users, an exclusive GHO facilitator, support for on-demand minting of GHO, a licensed liquidation process, integration with ERC-20 tokens on the RWA whitelist, and asset-level permission control managed by the RWA issuer.
Aave Labs stated that Horizon will implement a structured profit-sharing mechanism. Specifically, in the first year, 50% of the profits will be allocated to the Aave DAO, 30% in the second year, 15% in the third year, and 10% in the fourth year and beyond.
Additionally, if Horizon issues a token, 15% will be allocated to the Aave DAO as follows:
· 10% allocated to the Aave DAO treasury
· 3% reserved for Aave ecosystem incentives
· 2% distributed as airdrops to Staked Aave (stkAAVE) holders
In terms of operational support, the Aave DAO and its service providers will oversee the operational functions of the Horizon RWA product. Meanwhile, Horizon will retain independence, be responsible for configuring the instance, and guiding the product's strategic direction, including adapting to market changes, meeting institutional demands, and expanding to new networks.
Community Strongly Reacts: Only 10% Profit Sharing Ratio After 4 Years, Unclear New Token Use Case
However, the planned launch of Horizon has not received widespread community support but instead sparked intense opposition. EzR3aL, an independent representative of the Aave DAO, stated, "I think this tapering (profit-sharing ratio) is too aggressive and doesn't even follow the guidelines here. As we all agree, the first and second years might be market launch periods, so revenues won't be too high unless Aave Labs commits to providing liquidity support upfront, a commitment that if exists should be shared with the DAO for potential revenue estimations. Otherwise, I think real significant revenue may come in the third year and beyond, when the profit split ratio has already dwindled to 10%, which leaves me puzzled.
Guidelines mentioned byEzR3aL: Aave's profit-sharing: 20% monthly allocation; Aave DAO's token supply: 7% of the total supply allocated at TGE (Token Generation Event) or before deployment (if TGE has already occurred). If the token undergoes future rebase adjustments or inflation, the Aave DAO will receive additional tokens to prevent dilution.
EzR3aL states that next is the token distribution alignment, which is the part that confuses me the most. Is it (the new token) intended for separate governance? Is decentralized governance truly necessary for a permissioned market accessible only to eligible institutions? Is it to compensate Aave/Avara investors? Because if profit-sharing cannot be achieved through other means, VCs usually expect this arrangement. Is it a way for Aave Labs/Avara to generate profit? Because it might include a profit-sharing mechanism as one of its features?
Furthermore, he poses the question, how will the GHO minting process work? Will Aave's core instance first mint GHO and then lend to that instance, or can that instance directly mint GHO, thereby earning income from GHO borrowing? Lastly, "Aave DAO and its service providers will oversee the operational functionality of Horizon's RWA product." What does this mean? Under the V3 version, which parts of the instance will the DAO control? But once the V4 version is launched, will the DAO no longer have any relationship with it?
EzR3aL expresses more concern that the Aave token seems to have been abandoned, while another product entirely based on the Aave codebase (funded by multiple grant proposals by the DAO, with last year alone spending $12 million on just the V4 version) has been launched.
"It looks like AaveLabs and Avara are looking for ways to monetize this product, which is totally fine. I've supported all this since the Ethlend era. Bringing large institutions on-chain definitely requires a lot of resources. However, there could be better ways to do this that align with the community and DAO. For example, Horizon could pay fees in USDC and GHO and have the DAO retain these fees while possibly having some degree of governance over Horizon due to legal issues."
EzR3aL believes that by doing this, we can create a super DApp—an Aave and split it into two branches:
· Aave Market: Targeting on-chain DeFi ecosystem and on-chain national debt
· Horizon Market: Targeting institutions looking to fully compliantly and legally go on-chain
Meanwhile, other community members have also criticized the issuance of the new token. gregrwalsh says: I am not a fan of the proposed token issuance method. I don't understand why Aave's token needs to be diluted. If a new token is needed for some reason, it should maintain a 1:1 relationship with the Aave token, and holders should receive a proportional allocation. Additionally, Aave DAO's revenue share is also decreasing. This is clearly intended to operate as a new entity. I do not support this proposal. ParkerB123 says: In my opinion, there is no reason to issue a new token. If it is for governance purposes, then AAVE itself should be used as the governance token, after all, this is an initiative of AAVE Labs.
L1D Investor 0xLouisT further pointed out that launching a new token for a new business line is a scam. Has Amazon split AWS into a new company? Has Apple introduced a separate stock for AirPods? Clearly not. Investor support for a protocol is for both its current business and its future potential. Splitting a token, on the other hand, is the opposite—it's a huge red flag. The market will punish it. If we want cryptocurrency to be taken seriously, projects need to start operating like serious businesses.
Aave Founder Stani Responds: DAO Consensus Will Be Respected
After a few days of events unfolding, Aave's founder and CEO Stani Kulechov (@StaniKulechov) responded on March 16th, stating: The overall consensus of the Aave DAO is not interested in other tokens. This consensus will be respected, and the Aave DAO is a true DAO. Once a suitable method is found, RWA exploration will continue.
"Currently, it is evident that the DAO has reached a consensus that even if the token could accelerate Aave's revenue growth through liquidity mining, there will not be broad interest. Our team also has no intention to push the proposal, especially as this is the least exciting part of the temperature check, and I believe there are other ways to find how to guide liquidity and revenue flow through centralized businesses and products interested in using the Aave technology stack."
Stani further pointed out that RWA is a crucial revenue exposure for the Aave DAO, as mentioned earlier, should not be overlooked, so we will revise the proposal to consider feedback. We must remember that the Aave DAO is a true DAO, and any initial discussions and consensus reached must be respected, and our team has no interest in pushing anything that the DAO deems inappropriate. That's why smart money bets on $AAVE.
Crypto researcher @0xCoumarin stated that, in reality, AAVE's Horizon proposal could indeed be broken down into some finer sub-proposals. The DAO's demands are quite simple: 1. No new token; the money attracting liquidity can come from the AAVE DAO; 2. The protocol revenue share to the AAVE DAO needs to be increased. The trend of DeFi protocols moving towards institutions is significant, and the launch of Horizon can increase AAVE DAO revenue, more or less. Additionally, Horizon will support $GHO as the main borrowed stablecoin, which can expand the market size and revenue of AAVE's stablecoin business.
The community's concerns are also understandable. If new token issuance and decreasing revenue sharing ratio are allowed, the team will definitely focus more on building Horizon from a profit perspective. Horizon itself is also an institutional-oriented product and does not need the expectation of a new token to drive growth through point activities, so the analogy of $AERO to $VELO does not apply here.
The distribution details of the new token are also very strange. Only 15% will be allocated to the Aave DAO, 10% will go to the Aave DAO treasury, 3% is reserved for Aave ecosystem incentives, and 2% will be airdropped to Staked Aave (stkAAVE) holders. Therefore, it is reasonable to speculate that AAVE Labs will receive a significant amount of token-based revenue from the remaining 85%, which is also why the community thinks the team is launching a new project to make money. In summary, the launch of Horizon is a good thing; it all depends on how the community and the team can come to an agreement on the distribution of benefits.
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Never Underestimate the Significance of the US Stablecoin 'Infrastructure Bill'
If the US stablecoin bill, the "GENIUS Act," passes smoothly this time, its significance will be tremendous. I even think it's significant enough to enter the top five in Crypto history.
Although abbreviated as the GENIUS Act, which translates directly to the Genius Act, it is actually the Guiding and Establishing National Innovation for U.S. Stablecoins, which translates to "Guiding and Establishing National Innovation for US Dollar Stablecoins."
The proposal is lengthy, with several key points summarized for everyone:
· Mandatory 1:1 Full Asset Backing: Assets include cash, demand deposits, and short-term US Treasuries. At the same time, misappropriation and rehypothecation are strictly prohibited.
· High-Frequency Disclosure: Reserve reports must be published at least monthly, introducing external audits.
· Licensing Requirement: Once the circulating market cap of the issuer's stablecoin exceeds $100 billion, it must transition into the federal regulatory system within a specified timeframe, adopting banking-grade regulation.
· Introduction of Custody: The custodian of the stablecoin and its reserve assets must be a regulated qualified financial institution.
· Clear Definition as a Payment Medium: The bill explicitly defines stablecoin as a new type of payment medium, primarily regulated by the banking regulatory system, rather than restricted by the securities or commodities regulatory system.
· Embracing Existing Stablecoins: A maximum 18-month grace period after the bill's enactment, aimed at encouraging existing stablecoin issuers (such as USDT, USDC, etc.) to promptly obtain licenses or become compliant.
After finishing the main content, let's talk about the significance of this matter with an excited heart.
Over the years, when others asked, "After working in the Crypto industry for 16 years, what application have you created?"
In the future, you can confidently tell others—Stablecoins.
Some people have held opposing views. In the past, people's impression of stablecoins was that they were an opaque black box. Every few months, there would be FUD — whether Tether's assets were frozen or Circle had a significant black hole deficit.
In fact, if you think about it, Tether easily rakes in billions of dollars a year just from the interest on those underlying government bonds. Circle, slightly less, also made a $1.7 billion profit last year.
They basically made money while standing there. From a motivational standpoint, they have no malicious intentions. In fact, they are the most eager for compliance.
Now, this opaque black box will become a transparent white box.
In the past, the only complaint was that Tether's funds might have been frozen by the United States. Now, they will be directly placed into U.S. compliant custodial institutions, with high-frequency disclosures, so you can rest assured.
【No need to worry about a rug pull】 is such a huge advantage—I think especially all Crypto people understand this.
Stablecoins were once almost on the verge of being overtaken by CBDCs. In any country, if a central bank digital currency really exists, it is highly likely not built on a blockchain, at most it is built on some internal central bank consortium chain, which to be honest, is meaningless.
When CBDCs were at their peak, that was the most dangerous time for stablecoins.
If CBDCs had become a reality back then, stablecoins today would have been relentlessly suppressed into a dark corner, and blockchain would only be able to play a minimal role.
The remaining half-dead stablecoins would even have to learn the standards of central bank digital currencies, completely relinquishing their standard-setting power.
And now, stablecoins have won (or are about to).
Instead, everyone should learn the 【Blockchain + Token】 standard.
Nowadays, many blockchains actually have no meaningful applications on top, only stablecoin transfers. For example, with Aptos, the only scenario I use Aptos for is transfers between Binance and OKX.
And now, stablecoins will be legislated, what does that mean?
That's right, blockchain will become the only standard.
In the future, every stablecoin user will be the first to learn how to use a wallet.
As an aside, I actually think Ethereum's concerted push for EIP-7702 is quite forward-thinking. While other chains are all about memes, thank you Ethereum for sticking to account abstraction.
EIP-7702 is about Account Abstraction, which can support, for example:
· Social Account Registration Wallet
· Paying GAS with Native Coin
· And more
This paves the way for future new users to heavily use stablecoins, solving the last-mile problem.
Furthermore, once stablecoins receive legislative support, deposits and withdrawals will become even easier.
Let's imagine a scenario: previously, hindered by the gray nature of stablecoins, but after the bill passes, many traditional brokerages can support stablecoins themselves. The money from a US stock investor can be converted into stablecoins in minutes and instantly deposited into Coinbase. Believe it or not.
Let's imagine another scenario: if the brilliant bill smoothly passes through the House of Representatives, next, you will see:
Due to the extremely lucrative nature of this trading, existing stablecoin leaders and newly entering traditional giants will crazily start promoting their stablecoin products.
And an outsider, due to these promotions, will start using stablecoins. And then one day, after finding out that the wallet account has been created, will explore Bitcoin inside. Is mining Bitcoin difficult?
Stablecoins are a huge Trojan horse. The moment you start using stablecoins, you unwittingly step half a foot into the Crypto world.
As a large reservoir for digesting US debt, although stablecoins cannot directly absorb debt, they at least provide ammunition for the US debt secondary market. These functions are quite important, and slowly, stablecoins are becoming a part of the US debt market's body. Therefore, once the US legislation is passed and experiences the benefits, there is no turning back.
And, we are also confident that stablecoins are indeed one of the great innovations in our industry. People who have used stablecoins will find it hard to return to the traditional cash-banking system.
Once the bill is passed, users can't go back. In the future, concerns are about to be resolved, standards will be mastered, and the era of large deposits seems to be on the horizon.
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Ika Receives Strategic Investment from Sui Foundation, Total Funding Exceeds $21 Million
Switzerland Zug, April 28, 2025, Chainwire
The world's fastest parallel MPC network, Ika, is set to launch on the Sui blockchain, announces a strategic investment from the Sui Foundation. Previously, Ika successfully completed a record-breaking 1.4 million SUI NFT art event on Sui. Ika is the world's first sub-second MPC network, capable of achieving zero-trust interoperability among hundreds of signing nodes, unprecedented in scale and rock-solid security.
Ika's core values of performance, speed, and high decentralization align perfectly with Sui. With its upcoming launch on the Sui blockchain, Ika will bring its unparalleled MPC technology into the Sui ecosystem, providing Sui Move smart contract developers with secure cross-Web3 interoperability. This further solidifies Sui's position as the preferred solution in cross-chain DeFi, decentralized custody, chain abstraction, AI-agent defense, native Bitcoin programmability, leveraging the first truly scalable and secure MPC signature scheme.
Ika addresses key bottlenecks of existing MPC networks and delivers unparalleled performance through innovative 2PC-MPC encryption scheme and Sui's Mysticeti consensus protocol:
1. Record Throughput: Ika's transaction processing capability is up to 10,000 times higher than current MPC networks, supporting unprecedented transaction volumes.
2. Ultra-Low Latency: While traditional network signatures may experience delays of 30 seconds or more, Ika can generate signatures in sub-seconds, supporting cross-chain real-time applications.
3. Tremendous Scalability: Ika breaks the conventional limit of 4-8 nodes, and the 2PC-MPC can scale to hundreds or even thousands of signers, enhancing decentralization without sacrificing performance.
4. Zero-Trust Security: Ika's architecture ensures that even in the most extreme scenarios, user assets remain secure, setting a new standard for decentralized security.
Ika's ultra-fast MPC network supports various applications on the Sui blockchain, and several Sui developers have utilized Ika to build tech, including:
· DeFi Interoperability: Ika's sub-second speed and scalability enable instant secure operations within the Web3 ecosystem, bringing liquidity from chains like Bitcoin and Ethereum into Sui. Sui developers Full Sail and Rhei have announced upcoming tech launches based on Ika.
· Decentralized Custody: Ika provides a secure, decentralized custody solution for digital assets on Sui, delivering unparalleled security for both institutional and individual users. Sui developers Aeon and Human Tech have announced the integration of Ika into their technology.
· Chain Abstraction: Ika helps Sui developers abstract away multi-chain complexity for users, combining with Sui's zkLogin feature to deliver a seamless user experience. Sui developers Covault and Lucky Kat have announced the integration of Ika into their technology.
· Programmable Bitcoin: Ika unlocks new possibilities for native BTC on Sui, enabling programmable and secure DeFi and custody. Sui developers Native and Nativerse have announced the upcoming launch of Ika-based technology.
· AI Agent Protection: Ika enhances AI applications on Sui by providing secure MPC protection, ensuring AI agents do not possess unrestricted power and safeguarding user asset security. Sui developers Atoma and Ekko have announced the upcoming launch of Ika-based technology.
The strategic investment in Ika by the Sui Foundation underscores Sui's commitment to driving cutting-edge technology for high performance and decentralization. This amplifies the technical synergy within the Sui ecosystem, propelling Sui and Ika to the forefront of the Web3 revolution, jointly advancing the future of secure, scalable, decentralized infrastructure.
Ika has raised over $21 million in funding, with a peak private valuation of $6 billion FDV, backed by support from Sui Foundation, DCG, Big Brain Holdings, Blockchange, Node Capital, Amplify Partners, Liquid2 Ventures, FalconX, Tykhe Block Ventures, Lightshift, Token Bay Capital, Collider, Zero Knowledge Ventures, NoLimit Holdings, Rubik Ventures, Dispersion Capital, Insignius Capital, Impatient Ventures, Cerulean Ventures, Earl Grey Capital, HDI Ventures, Flowdesk, TPC Ventures, Purechain Capital, Solr DAO, Heroic Ventures, Naval Ravikant, NotVCs, G-20 Group, Artifact Capital, DSRV, Encapsulate, and many other key players in the Web3 space.
Ika also demonstrated the strong support of Sui users by launching the "MF Squid Market" NFT art event, which became the largest and most successful NFT event in Sui's history, raising over 1.4 million SUI and establishing an active grassroots community.
The IKA token is set to native launch on the Sui blockchain, unlocking new decentralized security features and utilities. As the native token of the Ika MPC Network, IKA will play a key role in its ultra-fast, scalable infrastructure, used for paying MPC signature services, enabling seamless transactions within the Web3 ecosystem. Leveraging Sui's unparalleled speed and performance, Ika enhances the security and scalability of the entire ecosystem, introducing the most promising MPC technology in blockchain to the fastest-growing L1 of Web3.
Ika is the world's fastest parallel MPC network, offering sub-second latency, unprecedented scale and decentralization, and zero-trust security. As the preferred choice for interoperability, decentralized custody, and chain abstraction, Ika will fundamentally transform digital asset security and multi-chain DeFi.
Sui is the first Layer 1 blockchain and smart contract platform designed from the ground up to provide fast, private, secure, and inclusive digital assets. Built on the Move programming language, its object-centric model supports parallel execution, sub-second finality, and rich on-chain assets. Through horizontally scalable processing and storage capacity, Sui supports widespread applications at low cost with unparalleled speed. Sui represents a significant advancement in blockchain technology, offering creators and developers a platform to build exceptional user experiences.
Contact:
Ika PR
pr@ika.xyz (mailto:pr@ika.xyz)
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HTX Research Latest Research Report丨Sonic: A Case Study of the New DeFi Paradigm
While the industry was still embroiled in the Layer 2 scaling debate, Sonic offered a new answer through a "foundational revolution." Recently, HTX Research released its latest research report "Sonic: A Blueprint for the DeFi New Paradigm," detailing the new public chain Sonic. While fully compatible with the EVM, Sonic has achieved a throughput of over 2000 TPS, 0.7-second transaction finality, and a transaction cost of 0.0001 USD, outperforming mainstream Layer 1 solutions and even surpassing most Layer 2 solutions. The performance-boosting Sonic is reshaping public chain infrastructure, officially ushering in the "sub-second era" of public chains.
As a high-performance public chain based on a Directed Acyclic Graph (aDAG), Fantom Opera initially stood out for its high throughput and fast confirmation capabilities. However, as the on-chain ecosystem expanded, the limitations of its traditional EVM architecture became increasingly apparent: state storage expansion, slow node synchronization, and constrained execution efficiency. To address this, Fantom introduced the new upgrade solution Sonic, aimed at achieving performance leaps through fundamental reconstruction without relying on sharding or Layer 2.
Led by the restructured Sonic Labs, Sonic's core development team brought together top industry talents, including CEO Michael Kong, CTO Andre Cronje (founder of Yearn Finance), and Chief Research Officer Bernhard Scholz. Over a period of two and a half years, the team comprehensively optimized from the virtual machine, storage engine to the consensus mechanism, ultimately creating the standalone new chain Sonic. While being EVM-compatible, Sonic has achieved over 2000 TPS, 0.7-second finality, $0.0001 transaction cost, a 90% improvement in storage efficiency, and reduced node synchronization time from weeks to within two days.
· SonicVM: The new virtual machine dynamically compiles EVM bytecode, caches high-frequency operations (such as SHA3 hashing), and pre-analyzes jump instructions, improving execution efficiency several times over to support high-throughput demands.
· SonicDB: Using a layered storage design, it separates real-time state (LiveDB) from historical data (ArchiveDB), compressing storage space by 90%, reducing node maintenance thresholds, and enhancing decentralization.
· Sonic Gateway: A Layer 2-like cross-chain bridge to Ethereum, balancing security and efficiency through a batch processing mechanism, supporting bi-directional asset migration, and seamless integration with the Ethereum ecosystem.
Sonic introduces its native token S, exchanged 1:1 with the old token FTM, undertaking functions such as gas payment and governance staking. Its innovative mechanisms include:
· Gas Fee Monetization (FeeM): Developers can receive up to 90% of transaction fee sharing, incentivizing ecosystem app innovation; non-FeeM apps have 50% of fees burned to deter inflation.
· Point Airdrop System: Users earn points (Passive/Activity Points and Gems) through holding tokens, participating in DeFi, or ecosystem interactions, redeemable for a total of 200 million S tokens, creating a "usage is mining" positive feedback loop.
During the market downturn in 2025, Sonic's on-chain TVL grew over 500% against the trend, with stablecoin volume surpassing $260 million, driven by high-leverage yield strategies:
· Silo v2 Recurring Borrowing: Pledge S tokens to borrow stablecoins, leverage up to 20x, capturing multiple points and spread yields.
· Euler+Rings Combination: Deposit USDC to mint overcollateralized stablecoin scUSD, leverage up to 10x, while receiving Sonic points and protocol airdrops.
· Shadow DEX Liquidity Mining: Provide liquidity for mainstream trading pairs, earning up to 169% APY and receiving a share of trading fees.
The ecosystem's future plans involve introducing Real World Asset (RWA) yields and off-chain payment scenarios, expanding through compliant asset backing and consumer app integration, establishing a sustainable stablecoin utility loop.
Sonic's core DEX, FlyingTulip, designed by Andre Cronje, integrates trading, lending, and leverage functions, with key technological breakthroughs including:
· Adaptive AMM Curve: Combining Curve V2's liquidity aggregation advantage, introducing external oracle monitoring of volatility, dynamically adjusting the curve shape—close to a constant-product curve during low volatility (low slippage), and approaching a constant-product curve during high volatility (preventing liquidity depletion), reducing impermanent loss by 42%, and improving capital efficiency by 85%.
· Dynamic LTV Lending Model: Drawing inspiration from Curve's LLAMA liquidation mechanism but dynamically adjusting the loan-to-value (LTV) ratio based on market volatility. For example, the ETH collateral loan-to-value ratio can plummet from 80% during calm periods to 50% during volatile periods, reducing systemic risk.
With its triple advantage of "high performance + nested yield + low threshold," Sonic is expected to exceed $2 billion in TVL within 12 months, and its token S may impact billions of dollars in market capitalization. Its model has established a new paradigm for the industry: replacing liquidity speculation with on-chain efficiency and real returns, potentially triggering a fundamental shift in the logic of public chain competition.
Potential risks are concentrated at the technical level, including the Adaptive AMM relying on an external oracle, which could result in liquidity pool anomalies if the price feed is attacked. High-leverage strategies face liquidation risks during extreme market conditions and require hedging tools (such as perpetual contract shorts) to manage volatility.
From a macro perspective, Sonic is poised to be the dark horse in the 2025 DeFi revival wave, with the success of its stablecoin ecosystem creating broad upside potential for the ecosystem token S and overall network value. Sonic's rise validates a key proposition: even in a bear market, through mechanism innovation and performance breakthroughs, DeFi can still build a "yield fortress" to attract rational capital for long-term retention. Its nested yield model, developer incentive system, and efficient infrastructure provide the industry with a reusable template. If successfully integrated with RWAs and payment scenarios, Sonic may become a bridge connecting on-chain yield with real economic demand, propelling DeFi into a new stage of mass adoption.
To read the full report, please visit: https://square.htx.com/wp-content/uploads/2025/04/HTX-Research-Latest-Report.pdf
HTX Research is the dedicated research arm of HTX Group, responsible for in-depth analysis of a wide range of areas including cryptocurrency, blockchain technology, and emerging market trends. HTX Research produces comprehensive reports, offers professional evaluations, and is committed to providing data-driven insights and strategic foresight. It plays a key role in shaping industry perspectives and supporting informed decision-making in the digital asset space. With rigorous research methods and cutting-edge data analysis, HTX Research always remains at the forefront of innovation, driving industry thought leadership and facilitating a deep understanding of the evolving market dynamics.
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Never Underestimate the Significance of the US Stablecoin 'Infrastructure Bill'
If the US stablecoin bill, the "GENIUS Act," passes smoothly this time, its significance will be tremendous. I even think it's significant enough to enter the top five in Crypto history.
Although abbreviated as the GENIUS Act, which translates directly to the Genius Act, it is actually the Guiding and Establishing National Innovation for U.S. Stablecoins, which translates to "Guiding and Establishing National Innovation for US Dollar Stablecoins."
The proposal is lengthy, with several key points summarized for everyone:
· Mandatory 1:1 Full Asset Backing: Assets include cash, demand deposits, and short-term US Treasuries. At the same time, misappropriation and rehypothecation are strictly prohibited.
· High-Frequency Disclosure: Reserve reports must be published at least monthly, introducing external audits.
· Licensing Requirement: Once the circulating market cap of the issuer's stablecoin exceeds $100 billion, it must transition into the federal regulatory system within a specified timeframe, adopting banking-grade regulation.
· Introduction of Custody: The custodian of the stablecoin and its reserve assets must be a regulated qualified financial institution.
· Clear Definition as a Payment Medium: The bill explicitly defines stablecoin as a new type of payment medium, primarily regulated by the banking regulatory system, rather than restricted by the securities or commodities regulatory system.
· Embracing Existing Stablecoins: A maximum 18-month grace period after the bill's enactment, aimed at encouraging existing stablecoin issuers (such as USDT, USDC, etc.) to promptly obtain licenses or become compliant.
After finishing the main content, let's talk about the significance of this matter with an excited heart.
Over the years, when others asked, "After working in the Crypto industry for 16 years, what application have you created?"
In the future, you can confidently tell others—Stablecoins.
Some people have held opposing views. In the past, people's impression of stablecoins was that they were an opaque black box. Every few months, there would be FUD — whether Tether's assets were frozen or Circle had a significant black hole deficit.
In fact, if you think about it, Tether easily rakes in billions of dollars a year just from the interest on those underlying government bonds. Circle, slightly less, also made a $1.7 billion profit last year.
They basically made money while standing there. From a motivational standpoint, they have no malicious intentions. In fact, they are the most eager for compliance.
Now, this opaque black box will become a transparent white box.
In the past, the only complaint was that Tether's funds might have been frozen by the United States. Now, they will be directly placed into U.S. compliant custodial institutions, with high-frequency disclosures, so you can rest assured.
【No need to worry about a rug pull】 is such a huge advantage—I think especially all Crypto people understand this.
Stablecoins were once almost on the verge of being overtaken by CBDCs. In any country, if a central bank digital currency really exists, it is highly likely not built on a blockchain, at most it is built on some internal central bank consortium chain, which to be honest, is meaningless.
When CBDCs were at their peak, that was the most dangerous time for stablecoins.
If CBDCs had become a reality back then, stablecoins today would have been relentlessly suppressed into a dark corner, and blockchain would only be able to play a minimal role.
The remaining half-dead stablecoins would even have to learn the standards of central bank digital currencies, completely relinquishing their standard-setting power.
And now, stablecoins have won (or are about to).
Instead, everyone should learn the 【Blockchain + Token】 standard.
Nowadays, many blockchains actually have no meaningful applications on top, only stablecoin transfers. For example, with Aptos, the only scenario I use Aptos for is transfers between Binance and OKX.
And now, stablecoins will be legislated, what does that mean?
That's right, blockchain will become the only standard.
In the future, every stablecoin user will be the first to learn how to use a wallet.
As an aside, I actually think Ethereum's concerted push for EIP-7702 is quite forward-thinking. While other chains are all about memes, thank you Ethereum for sticking to account abstraction.
EIP-7702 is about Account Abstraction, which can support, for example:
· Social Account Registration Wallet
· Paying GAS with Native Coin
· And more
This paves the way for future new users to heavily use stablecoins, solving the last-mile problem.
Furthermore, once stablecoins receive legislative support, deposits and withdrawals will become even easier.
Let's imagine a scenario: previously, hindered by the gray nature of stablecoins, but after the bill passes, many traditional brokerages can support stablecoins themselves. The money from a US stock investor can be converted into stablecoins in minutes and instantly deposited into Coinbase. Believe it or not.
Let's imagine another scenario: if the brilliant bill smoothly passes through the House of Representatives, next, you will see:
Due to the extremely lucrative nature of this trading, existing stablecoin leaders and newly entering traditional giants will crazily start promoting their stablecoin products.
And an outsider, due to these promotions, will start using stablecoins. And then one day, after finding out that the wallet account has been created, will explore Bitcoin inside. Is mining Bitcoin difficult?
Stablecoins are a huge Trojan horse. The moment you start using stablecoins, you unwittingly step half a foot into the Crypto world.
As a large reservoir for digesting US debt, although stablecoins cannot directly absorb debt, they at least provide ammunition for the US debt secondary market. These functions are quite important, and slowly, stablecoins are becoming a part of the US debt market's body. Therefore, once the US legislation is passed and experiences the benefits, there is no turning back.
And, we are also confident that stablecoins are indeed one of the great innovations in our industry. People who have used stablecoins will find it hard to return to the traditional cash-banking system.
Once the bill is passed, users can't go back. In the future, concerns are about to be resolved, standards will be mastered, and the era of large deposits seems to be on the horizon.
Original Article Link
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