The Sonic ecosystem has captured the attention of DeFi enthusiasts with its unique points-based incentive model and yield opportunities. While early strategies promised sky-high APRs, market shifts have made many approaches obsolete or too risky. This guide dives deep into the current state of Sonic loop mining, focusing on viable, low-risk strategies that balance yield and points accumulation — especially highlighting the AAVE USDC loop strategy that still holds promise in 2025.
Understanding Sonic’s Points System and Market Realities
Sonic’s reward mechanism relies heavily on积分 (points), which are distributed based on user activity such as lending, borrowing, and liquidity provision. However, a key challenge users face is delayed or inconsistent points tracking, as data processing is outsourced to third parties without a fixed update schedule. While daily updates are intended, delays are common — but typically resolve within hours or days.
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This inconsistency impacts APR estimation accuracy. Earlier projections often used external tools like Pindle YT to forecast returns, but these models are now outdated. For example, a 24x Sonic points boost might suggest high value, yet the actual tradable price of PT (Points Token) reflects only about 9.2% annualized value — far below initial assumptions.
Market sentiment shows that users are now pricing in lower effective yields for high-multiplier points. Take AUSDC LP positions offering 8% base yield: if the corresponding PT trades at just 9%, the implied premium for points is merely ~1%. This signals declining confidence in future points-to-token conversions or distribution timelines.
Why Most Loop Strategies No Longer Work
Loop mining — borrowing assets against deposited collateral to amplify yields — was once a dominant tactic on Sonic. However, most advanced strategies circulating online are no longer feasible due to:
- Unreliable interest rate subsidies on lending protocols like Cellow.
- Extended redemption periods (e.g., up to 14 days for LST withdrawals).
- High slippage and capital inefficiency in multi-step loops.
- Lack of deep liquidity, limiting scalability for larger investors.
One widely shared strategy from March 2025 involved leveraging PT yield differentials across platforms. While theoretically sound, it depended on sustained low borrowing rates from subsidized protocols. Once incentives were reduced or removed, the arbitrage window closed. Additionally, unwinding such positions often requires bridge capital due to withdrawal delays — introducing both timing risk and opportunity cost.
Even seemingly attractive spreads — such as an 8.8% STS PT yield versus 7.8% elsewhere — aren’t worth the operational complexity and liquidation risk they entail.
The Viable Strategy: AAVE USDC Loop with ETH Cross-Account Leverage
Despite broader challenges, one strategy remains robust: the AAVE USDC loop enhanced with cross-account ETH leverage. This method capitalizes on AAVE’s ongoing Sonic rewards for USDC deposits while mitigating borrowing caps and maximizing points efficiency.
How It Works
- Account A: Deposit USDC into AAVE and borrow ETH (within safe collateral ratios).
- Transfer the borrowed ETH to Account B.
- In Account B, deposit ETH and borrow USDC.
- Transfer the newly borrowed USDC back to Account A to repeat the cycle.
By splitting the loop across two wallets, you bypass single-account borrowing limits on USDC while earning Sonic points on both sides of the leverage.
Yield Breakdown
- Base USDC deposit reward: ~8% in Sonic points (claimable directly on AAVE).
- Leveraged position yield: When compounded via ETH-backed borrowing, net APR reaches approximately 11.8%.
Points efficiency:
- USDC: 12x points multiplier
- ETH: 4x multiplier
- Combined (when converted): Up to 28x Sonic points efficiency
This structure not only boosts returns but also enhances points accumulation speed — critical for early-stage ecosystem participants aiming to maximize future airdrop eligibility.
⚠️ Risk Note: Health factor must remain above 1.0 at all times. Market volatility in ETH or changes in collateral factors can trigger liquidations. Always maintain a buffer zone (e.g., target health > 1.5).
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Alternative Opportunities: High-Risk Farms and Niche Pools
Beyond looping, Sonic hosts several experimental yield farms and liquidity pools. These often advertise triple-digit APRs but come with significant caveats:
- Low liquidity: Makes entry and exit difficult without price impact.
- Unclear tokenomics: Many lack transparent emission schedules or utility.
- Impermanent loss exposure: Especially in volatile asset pairs.
While experienced users may explore these for speculative points farming, they’re generally unsuitable for conservative investors.
Frequently Asked Questions (FAQ)
Q: Is Sonic still worth farming in 2025?
Yes, but selectively. With inflated APRs corrected by market reality, only well-structured strategies like the AAVE USDC loop offer sustainable returns. Focus on points efficiency and capital safety over headline yields.
Q: Why are my Sonic points not updating?
Points tracking is managed by third-party providers and updates irregularly. Delays of several hours or even a day are normal. Avoid panic; your activity is likely being recorded and will reflect soon.
Q: Can I use other stablecoins besides USDC?
USDC currently offers the best combination of liquidity, stability, and reward alignment on AAVE. While other stablecoins exist on Sonic, their incentive structures are less favorable and often lack reliable borrowing markets.
Q: What happens if I get liquidated during a loop?
Liquidation results in partial loss of collateral and termination of your leveraged position. You’ll also stop earning points. Use conservative loan-to-value ratios and monitor your health factor closely.
Q: Are there any tools to track real-time APR and points value?
No official dashboard exists yet. Third-party analytics like Pindle YT provide estimates but should be cross-checked with on-chain data and PT market prices (where tradable). Treat all projections as speculative.
Q: How do I claim my AAVE Sonic rewards?
Rewards are claimable directly through the AAVE interface under the "Rewards" section. Once claimed, AWS (AAVE’s Sonic reward token) can be used in supported LPs to further boost points accrual.
Final Thoughts: Prudence Over Hype
The era of effortless 100%+ APRs on Sonic has passed — and that’s a good thing. The ecosystem is maturing, filtering out unsustainable schemes and rewarding thoughtful, risk-aware participants.
For now, the AAVE USDC loop with cross-account ETH leverage stands out as the most balanced strategy: offering double-digit returns, strong points multiplication, and reasonable scalability. As always in DeFi, never invest more than you can afford to lose, and prioritize protocols with strong security track records.
Whether you're chasing early-mover advantages or building long-term yield portfolios, staying informed and agile is key. The landscape evolves fast — but smart strategies endure.
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