Efficiently capture the Sonic June Airdrop by referring to these three leverage strategies

The opportunity to earn points and rewards on Sonic will continue to grow. This article is from 0xSim0, written by Bankless, and compiled, translated, and written by Odaily. (Background: S (, formerly FTM), surged 73% in a single week. What's the big move? Overview of the Sonic ecosystem, Airdrop points strategy) (Background: Alpha Mining》Shadow Exchange innovative x(3,3) mechanism, what is it? Sonic breaks Uniswap dilemma) In June, Sonic will distribute 190.5 million S Tokens, with 25% of the rewards available for immediate claim, and the remaining 75% gradually released in the form of tradable Non-fungible Tokens. There are two ways to qualify: Points (for internet participants) and Gems (for builders), both of which may bring in earnings far exceeding speculative Airdrop. Ready to boost your points? The three strategies shared below may help you efficiently capture Sonic's June Airdrop. Preparation To start interacting with the Sonic protocol, you need some startup capital to execute interactions, as well as some S to pay gas fees. You can choose to use any standard EVM Wallet (such as Rabby or Metamask) and access Sonic through cross-chain bridges such as deBridge. Strategy 1: Silo Circle Loan This is currently the most popular and relatively simple strategy on Sonic, aiming to maximize point rewards while earning base income. The core of this strategy lies in the following loop operations: Obtain some stS by staking S or exchanging any Token for stS on a DEX. Deposit the stS into Silo Finance's S/stS loan market, which will earn you Sonic points, Silo points (points redistributed by Gems), and income (stS currently generates about 5% basic income, plus Silo's deposit APY). Borrow S from the market (if you want to earn income, the borrowing APY should be lower than the basic interest rate of stS and the above deposit APY). Exchange the borrowed S for stS. Repeat from step 2, in a loop operation. Due to the very close correlation between stS and S, the liquidation risk of borrowing the maximum amount is low, so you can basically get a 20x leverage effect (acting on both points and base income), with a loan-to-value ratio (LTV) of about 95%. For the stS you deposit, every $1 can earn 8 times the rate of Sonic points and 1 Silo point (which can be amplified to 20 times after leverage), and for the borrowed S, every $1 can earn an additional 0.5 Silo points (also amplifiable by 20 times). In addition, you can currently earn 2% basic income through stS deposits. If the Interest Rate of borrowing S is too high or the Interest Rate of stS deposits is too low, you can also reverse the loop (deposit S, borrow stS). Note: This strategy can also be used on Euler, but due to the 90% LTV limit, the leverage is only 10 times. However, Euler's operations are simpler and more suitable for users pursuing convenience. Strategy 2: Euler Finance + Rings Protocol Combination Strategy This strategy will use two major protocols, Euler Finance and Rings Protocol. Euler is another lending protocol that has been expanded to Sonic and has provided additional incentives to the network; Rings is a new asset protocol on Sonic that currently supports USDC, ETH, and BTC. Users can deposit these assets into Rings (which will then be deposited into the Veda strategy vault to earn income) and mint Rings version of Liquidity Derivative Tokens, which can be staked/locked to earn additional income or used in the Sonic ecosystem. The highlights of this strategy are as follows: Minting Rings Liquidity Derivative Tokens can earn Sonic Points and Rings Points (Gems); These Rings assets can be used on various protocols above Sonic to earn income + incentives; Euler provides a one-click loop lending function for highly correlated strategies to quickly obtain a 10x leverage. The specific operational steps are as follows: Choose a market on Euler currently enjoying additional incentives (such as USDC.e/scUSD or scETH/wstscETH). Compare the maximum ROE on Euler's strategy page and decide which assets to deposit and borrow. If you choose to deposit Rings version of Liquidity Derivative Tokens, you need to mint them in the Rings protocol first. Use Euler's Multiply function to achieve loop lending in one click and obtain the desired leverage. This strategy also has other additional opportunities, such as rumors that Rings will also conduct Airdrops, adding to the expected earnings of this strategy. Strategy 3: Shadow LP Shadow is one of the most commonly used Decentralized Exchanges (DEX) on Sonic. It has a huge volume and an interesting economic model, providing Liquidity on Shadow can earn native Token SHADOW, Sonic points, and Gems incentives. First, let's review the previous two strategies. If a large number of users choose to loop their S/stS on Silo and other protocols, where will they exchange these assets? The answer is Shadow! If they frequently do so, it will generate a large amount of Money Laundering, and these fees will go to Liquidity providers. In addition, Liquidity providers can also earn Sonic points, Sonic Gems, and SHADOW Token rewards, naturally forming a highly capital-efficient strategy. At the most aggressive price range setting (due to the high correlation between S and stS), this pool can currently provide 169% APR and 16 times Sonic points. It is worth noting that you can also use vfat.io (a Liquidity management tool supported by Sickle, now compatible with Sonic and Shadow) to automatically balance LP Position, as well as perform one-click entry and exit, automatic compound interest, and other operations, but it is currently uncertain whether you can earn Sonic points through this method. Hedging Insurance Most of the above strategies rely on volatile assets such as S or ETH. If the prices of these assets fall, it may seriously affect the actual return rate, or even lead to losses. Therefore, we need to hedge. The specific methods are as follows: Open a 1x capital short position through Perptual Futures exchange. If the price falls, the profit from the short position will offset the capital loss of the Airdrop strategy...