Sonic Labs to Launch Its Own Algorithmic Stablecoin

The creators of the Sonic blockchain are working on implementing their own algorithmic stablecoin, according to Sonic Labs co-founder Andre Cronje.

POC looks good. Yielding > 200% APR @ 10m tvl, around 23.5% APR @ 100m, steady at around 4.9% at 1bn+.

Will scale up and get team for a full release. https://t.co/JtMqzAkU7g pic.twitter.com/Z4j2aPzefB

— Andre Cronje (@AndreCronjeTech) March 22, 2025

According to him, Sonic plans to scale the system and prepare for a full release, though no specific timeline was provided.

Earlier, Cronje mentioned that his team had “cracked” the technology behind algorithmic stablecoins, yet a full-scale implementation remains uncertain.

“The previous cycle gave me such severe PTSD that I’m not sure if we should implement it,” explained the Sonic co-founder.

Cronje’s unpleasant experience likely relates to the collapse of the algorithmic stablecoin UST and the Terra ecosystem in 2022.

Later, he hinted that everyone at Sonic decided to launch the asset.

“You only live once,” wrote the entrepreneur.

Many users received the announcement with optimism, while some expressed concerns.

“Don’t do it. An algorithmic stablecoin is an oxymoron. If it’s stable, it doesn’t need an algorithm. If it’s tied to an algorithm, there’s always a scenario where it can lose its peg, meaning it’s unstable. Moreover, the peg always breaks when you need it most—during panic and flight,” noted one commentator.

In March, U.S. President Donald Trump urged Congress to pass a bill regulating stablecoins.