ChainCatcher report: Sonic Labs has launched its native stablecoin, the US Sonic Dollar (USSD), positioned as the core stable liquidity layer of the Sonic DeFi ecosystem. USSD is built on Frax’s frxUSD infrastructure and is institutionally backed by BlackRock, Superstate, and WisdomTree. It is pegged 1:1 to the U.S. dollar and allows feeless minting across more than 10 blockchains using assets such as USDC and USDT. USSD is now live on 12 chains, including Sonic, Ethereum, Base, and Arbitrum. This launch follows a sharp decline in Sonic’s TVL, which dropped 97% from its May 2025 peak of $1.1 billion to $34 million, while its native token S has fallen approximately 96% from its January 2025 all-time high of $1.03, leaving it with a market cap of just $150 million. Sonic states that USSD yields will be recycled back into the ecosystem for token buybacks and incentives, aiming to create a self-reinforcing liquidity loop and reduce dependence on external market makers.
Sonic Labs Launches Native Stablecoin USSD to Revitalize DeFi Ecosystem
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Summary
Sonic Labs has launched USSD, a native stablecoin designed to power the DeFi ecosystem. Built on Frax’s frxUSD model and supported by BlackRock and others, USSD is pegged 1:1 to the US dollar. Zero-fee minting is available across Ethereum, Base, and Arbitrum. Sonic’s TVL has dropped 97% to $34 million, and its token S has fallen 96% since January 2025. Earnings from USSD will fund buybacks and incentives. This move comes amid ongoing DeFi exploit risks and evolving developments within the Ethereum ecosystem.
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