Rings, a Collateralized Debt Position (CDP) project for the Sonic ecosystem, is one of the best-performing dapps in decentralized finance (DeFi), even as the sector is struggling amid the general bearish sentiment. DefiLlama data shows that the total value locked (TVL) of Rings is at a record $111 million after a fivefold increase over the past month.
Rings offers a meta-stablecoin for USD and ETH assets, providing deep liquidity for Sonic. Users can deposit Ethereum- and Sonic-based assets like USDC and ETH to mint scETH and scUSD. The algorithmic stablecoin can be used across Sonic dapps.
Sonic is a layer 1 blockchain launched in December 2024. The project rebranded from Fantom to ensure better performance and new features. The chain has been rapidly expanding its DeFi ecosystem, reaching a record $736 million in TVL earlier this week.
Rings’ TVL on Sonic is nearly $10 million, with the majority of deposited assets being on Ethereum. Collateral tokens with the highest TVL represent a mix of stablecoins and Ethereum liquid staking tokens (LSTs), including USDT, wstETH, aethWETH, aethUSDC, SUSD, gtWETH, steakUSDC, aethUSDT, and USDC.E.
On Wednesday, February 26, Rings saw record daily inflows, with more than $22 million worth of tokens deposited on the platform.
Users can stake scUSD and scETH for durations ranging from one week to a year to earn yield. The staked amount has declined from over $30 million last week to the current level of $4.5 million, as the first incentive round has closed. The platform claims that users could earn over 900% APR on stable and more than 200% on ETH.
CoinGecko data shows that scUSD has a market cap of $1.9 million, while the total value of scETH is over 47 million.
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