Sonic Labs launches FTM to S token swaps via Gateway

Sonic Labs announced on Dec. 25 that its official Sonic Gateway can now bridge FTM tokens from Ethereum to S tokens on the Sonic mainnet.

The gateway will also allow the transfer of Euro Coin ( EURC ), USD Coin ( USDC ), and Wrapped Ethereum (WETH). 

The conversion of FTM to S will occur at a ratio of 1:1. Based on on-chain data, 2.8 billion FTM tokens are currently in circulation, distributed among 117,731 holders.

Sonic is a new blockchain compatible with the Ethereum Virtual Machine (EVM), with its mainnet launched on Dec. 13. The network was developed by Sonic Labs, which was co-founded by Andre Cronje .

Sonic aims to create an infrastructure capable of processing 10,000 transactions per second and achieving block finality in less than one second. 

The S token is the native token of this new ecosystem and will share the same 3.175 billion supply as the FTM from Fantom. Sonic Labs will distribute 190.5 million S tokens to incentivize interactions with its new ecosystem.

Additionally, Fantom will still be functional for its users, and no plans are set to deactivate the network. According to DefiLlama data , Fantom currently has nearly $110 million in total value locked (TVL), with an 18% yearly decline.

Meanwhile, Sonic’s TVL currently aa $62 million in TVL, a sharp increase from $6 million to $58 million between Dec. 19 and 20. However, $58 million of Sonic’s TVL is related to liquid staking made through the Beets protocol.

The Gateway

In addition to faster finality, the Sonic blockchain aims to create a safer bridge between its infrastructure and the Ethereum network called Sonic Gateway.

The Sonic Gateway relies on network validators, who run both the Sonic client and Ethereum’s Light Client, to validate transactions and maintain security.

Furthermore, it added a fail-safe mechanism that lets users recover bridged assets on Ethereum if the gateway is non-functional for more than 14 days. This ensures that asset custody remains accessible in extreme circumstances.

It also bundles transactions for processing, saving costs but potentially introducing slight delays. Sonic Labs estimates that the delays will be 10 minutes from Ethereum to Sonic and 1 hour from Sonic to Ethereum.

Nevertheless, users can bypass these delays by paying a fee via the Fast Lane, which instantly accelerates their transactions and processes queued assets.

Mentioned in this article