Why $SHADOW Shadow Exchange on $S @SonicLabs absolutely dominates Sonic on chain activity?
This is for plebs who are new to Sonic ecosystem and don't know which projects are crown jewel of Sonic and probably 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 DEX built on 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 to now having extremely low liquidity for locked tokens)
Shadow on Sonic introduced X33 model, which is liquid version of staked Shadow.
✅Why X33 design is a genius move?
Foor is pegged to xShadow & 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 there locked positions via X33 route.
✅Now some $Shadow metrics
Shadow accounts for
🔹More than 60% of onchai volume on Sonic
🔹More than 80% of onchain fees.
🔹More than 80% of all onchain $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 holder's revenue generating protocol in crypto!
✅What's Next for Shadow?
▶️V2 is can be announced anytime (which would render aggregators obsolete)
▶️All major pools on Shadow is about to get huge boost in terms of APRs (🤐 )
▶️Might be strategic investment by the $S @SonicLabs
▶️Shadow tokens will have huge burn in future
All this and the $SHADOW on $S Sonic is at 10m mcap.
I think as soon as we see reversal on Sonic, expect some crazy numbers for the exchange. The domination is going to go up.
In future you can expect this model to be expanded to other chains as well.
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