{"id":125635,"date":"2025-03-23T11:20:34","date_gmt":"2025-03-23T11:20:34","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125635"},"modified":"2025-03-23T11:20:34","modified_gmt":"2025-03-23T11:20:34","slug":"sonic-unveils-high-yield-algorithmic-stablecoin-reigniting-terra-luna-ptsd","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125635","title":{"rendered":"Sonic unveils high-yield algorithmic stablecoin, reigniting Terra-Luna \u2018PTSD\u2019"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsThe Sonic blockchain is working on the implementation of its yield-generating, algorithmic stablecoin despite fears over a potential collapse similar to the Terra-Luna meltdown that led to the industry\u2019s longest crypto winter.<br \/>\nAlgorithmic stablecoins employ code-based mechanisms to ensure their price stability, as opposed to fiat stablecoins pegged directly to the value of the underlying currency.<br \/>\nThe Sonic blockchain is working on the implementation of an algorithmic stablecoin with up to 23% annual percentage rate (APR), according to Andre Cronje, co-founder of Sonic Labs and founder of Yearn.finance.<br \/>\nCronje wrote in a March 22 X post:<br \/>\n\u201cPOC looks good. Yielding &gt; 200% APR @ 10m tvl, around 23.5% APR @ 100m, steady at around 4.9% at 1bn+. Will scale up and get team for a full release.\u201d<br \/>\nSource: Andre CronjeThe announcement came a day after Cronje admitted to experiencing Post-traumatic stress disorder (PTSD) related to algorithmic stablecoin due to previous cycles:<br \/>\n\u201cPretty sure our team cracked algo stable coins today, but previous cycle gave me so much PTSD not sure if we should implement.\u201d<br \/>\nIn May 2022, the $40 billion Terra ecosystem collapsed, erasing tens of billions of dollars of value in a matter of days. Terra\u2019s algorithmic stablecoin, TerraUSD (UST), was yielding an over 20% annual percentage yield (APY) on Anchor Protocol.\u00a0\u00a0\u00a0<br \/>\nAs UST lost its dollar peg, crashing to a low of around $0.30, Terraform Labs co-founder Do Kwon took to X to share his rescue plan. At the same time, the value of sister token LUNA, once a top-10 crypto project by market capitalization, plunged over 98% to $0.84. For reference: LUNA was trading north of $120 in early April.<br \/>\nRelated: Sonic TVL rises 66% to $253M since rebranding from Fantom<br \/>\nSonic claims to be the world\u2019s fastest Ethereum Virtual Machine (EVM) chain, with a \u201ctrue\u201d 720 milliseconds (ms) finality \u2014 the assurance that a transaction is irreversible, which happens after it is added to a block on the blockchain ledger.<br \/>\nSonic has garnered attention in the crypto industry since its testnet achieved a 720 ms finality on Sept. 8, 2024.<br \/>\nRelated: FTX liquidated $1.5B in 3AC assets 2 weeks before hedge fund\u2019s collapse<br \/>\nInvestors are still buying collapsed LUNA token years after Terra crash<br \/>\nThe Terra (LUNA) token is down over 98% from its all-time high of 19.54 recorded on May 28, 2022, nearly three years ago, CoinMarketCap data shows.<br \/>\nLUNA\/USD, all-time chart. Source: CoinMarketCapDespite the collapse, the token saw over $21 million worth of trading volume over the past 24 hours, which shows that \u201cpeople are still buying it even though it\u2019s dead,\u201d noted popular technical analyst Optimus KevTron.<br \/>\nThe collapse of the algorithmic stablecoin issuer created shockwaves among both crypto investors and lawmakers.<br \/>\nTo create more stability, the European Union\u2019s Markets in Crypto-Assets Regulation (MiCA) bill will prohibit the issuance of algorithmic stablecoins to avoid another collapse similar to the Terra ecosystem\u2019s.<br \/>\nMagazine: \u2018Hong Kong\u2019s FTX\u2019 victims win lawsuit, bankers bash stablecoins: Asia Express<a href=\"https:\/\/cointelegraph.com\/news\/sonic-blockchain-algorithmic-stablecoin-andre-cronje?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsThe Sonic blockchain is working on the implementation of its yield-generating, algorithmic stablecoin despite fears over a potential collapse similar to the Terra-Luna meltdown that led to the&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125635"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125635"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125635\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125635"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}