As Layer 2 Scaling Solutions Remain a Focal Point of Industry Discourse, Sonic Presents a Fundamental Shift in Blockchain Architecture

As Layer 2 scaling solutions remain a focal point of industry discourse, HTX Research has announced the release of its latest report, “Sonic: A Model for the New DeFi Paradigm”. This report presents a fundamental shift in blockchain architecture with the introduction of Sonic, a public chain developed by Fantom.

While Fantom’s Opera chain is recognized for its speed and throughput as a high-performance aDAG-based Layer 1 solution, it encountered scalability limitations as its ecosystem expanded. The traditional EVM architecture faced issues with bloated state storage, slow node synchronization, and execution bottlenecks. To overcome these challenges without resorting to sharding or Layer 2 solutions, Fantom undertook a complete redesign, resulting in Sonic.

A new team at Sonic Labs, comprised of CEO Michael Kong, CTO Andre Cronje (founder of Yearn Finance), and Chief Research Officer Bernhard Scholz, dedicated two and a half years to rebuilding Fantom’s virtual machine, storage, and consensus. Their efforts culminated in Sonic, a new, independent chain compatible with EVM. Sonic can process over 2,000 TPS, achieves 0.7-second finality, and executes transactions at a cost of $0.0001, boasting 90% better storage efficiency and reducing node synchronization time from weeks to less than two days.

Three core technological advancements drive Sonic’s performance:

• Modular Virtual Machine: Sonic's modularized virtual machine, optimized for efficient state transition and parallel execution, enables high TPS and minimal transaction fees. In contrast, blockchains like Ethereum, despite recent improvements, still face limitations in their virtual machine architecture, resulting in lower TPS and higher transaction costs.

• Asynchronous Storage Engine: Sonic’s asynchronous storage engine, decoupled from the consensus layer, allows for efficient and scalable state management. This stands in stark contrast to other blockchains that struggle with bloating state after large-scale adoption, like EOS or TRON, which require chain optimization to clear the state and continue operation.

• Lightweight Consensus Protocol: Sonic employs a novel, lightweight consensus protocol that facilitates rapid block synchronization and transaction finality, in stark contrast to the heavier, energy-intensive protocols used by most PoW or PoS chains.

This performance is further enhanced by Sonic’s native token, $S, which is exchangeable with FTM at a 1:1 ratio and powers the ecosystem through gas fee payments, staking, and governance voting. Other key features include:

• High-Yield Payers: Sonic’s stablecoin ecosystem is designed with sophisticated high-leverage yield mechanisms, in direct contrast to the DeFi protocols that shut down or encountered difficulties due to the bear market in 2025. This resilience is crucial for attracting and retaining liquidity in a sustainable manner.

• Real World Asset (RWA) Yields: Sonic's ecosystem will integrate RWA yields and off-chain payment solutions to create a stablecoin ecosystem backed by compliant assets and real-world applications. This integration aims to provide a seamless experience for users interested in fiat-linked stablecoins or those seeking to make payments in their preferred currency.

Moreover, Sonic’s decentralized exchange (DEX), FlyingTulip, designed by Andre Cronje, integrates trading, lending, and leverage with two key innovations:

• Adaptive AMM: FlyingTulip features an adaptive liquidity management protocol that adjusts to market conditions, optimising capital efficiency. This stands in contrast to the limited capital utilization of traditional AMMs like Uniswap v3, which require manual intervention and constant monitoring.

• Dynamic Risk Control: The exchange incorporates a dynamic risk control framework to mitigate the inherent risks of high-leverage strategies in volatile markets. This contrasts with the broader crypto market's experience with large-scale liquidations during extreme market volatility.

Sonic’s innovations in DeFi infrastructure, such as the adaptive AMM and dynamic risk control, are fundamental shifts in the industry's trajectory. As Layer 2 scaling solutions and the potential of sharding remain topics of discussion, Sonic is already achieving remarkable performance metrics, ushering in a “sub-second era.”

The report highlights technical challenges, such as the adaptive AMM’s reliance on external oracles, which introduces potential vulnerabilities. From a broader view, Sonic is well-positioned to lead the expected 2025 DeFi resurgence. Its thriving stablecoin ecosystem boosts the value of both the $S token and the network. Even in a bear market, Sonic demonstrates the potential for DeFi to establish resilient “yield havens”.

For full report, please visit: https://square.htx.com/wp-content/uploads/2025/04/HTX-Research-Latest-Report-1-1.pdf