Program Overview
Sonic Labs' reward program has allocated 190,500,000 $S to Sonic users and applications, including Silo Sonic.
The program runs over multiple seasons, with S1 scheduled to conclude in June 2025.
Reward Streams
| Stream | Allocation | Distribution |
|---|---|---|
| Sonic Points | 62.50% | To users directly |
| Sonic Points | 37.50% | To users via protocols |
Maximizing Rewards on Silo
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Sonic Points
Silo users immediately benefit from a 2x Activity Multiplier on their Sonic Points. For example, if you deposit or borrow scUSD, you earn 6x * 2x = 12x.
By using leverage, Silo users can further amplify their points by using borrowed tokens on Silo or other Sonic applications.
Common strategies include:
- Leverage looping (e.g., stS/S silo, wstkscUSD/USDC silo)
- Yield arbitrage (e.g., borrowing tokens from one silo and depositing in Silo or another protocol)
Recursive vs. Non-Recursive Looping
Recursive Looping is where users deposit, borrow, and redeposit the same token into the same silo. These users will only receive Sonic Points for their initial deposit balance.
For example, a user that deposits stS in the stS/S silo, borrows stS, and then redeposits stS in the stS/S silo will only receive points on their original S deposit.
Any other form of looping is non-recursive looping. These users will receive Sonic Points on their total deposit balance.
For example, a user that deposits stS in the stS/S silo, borrows S, swaps S for stS, and then deposits S in the stS/S silo will receive points on their total stS deposit.
This mitigates point dilution from non-value adding actions.
Sonic Gems
When users earn Sonic Points via Silo, they contribute to Silo's final share of total Sonic Gems that are allocated to protocols. Silo will be distributing 100% of its Sonic Gems back to users based on the Silo Point Program [coming soon].