Simple Summary:
This proposal seeks to onboard stS (Staked Sonic) to Aave V3 Sonic Market.
Overview
This proposal recommends onboarding stS (Staked Sonic) to the Aave V3 Sonic Market. stS is a yield-bearing, liquid staking derivative of the native Sonic token ($S), issued and managed by Beets Finance. Adding stS would enable users to borrow against staked assets while continuing to earn staking rewards — a significant upgrade for capital efficiency within the Sonic DeFi ecosystem.
Why stS?
stS represents $S that has been delegated to Sonic validators via Beets. Staking rewards are automatically compounded into the stS token, causing its value to appreciate relative to $S over time. This makes it ideal collateral — it’s productive, aligned with network security, and fully liquid.
stS is already seeing meaningful traction, and with Sonic DeFi gaining momentum, the timing is right for Aave to support it.
Strategic Benefits
• Unlocks Liquidity from Staked Capital as stS lets users borrow against their staked $S without giving up yield — ideal for leveraging, hedging, or accessing liquidity without unstaking.
• Strengthens Aave’s Sonic Market. Aave has already experienced immense growth on Sonic, further expanding the market of available assets would allow for a further flow of liquidity into the platform, producing revenue for the AAVE Protocol in the long term.
Technical Notes
stS will be listed on the Aave V3 Sonic Market.
It is fully liquid and transferable, with staking rewards reflected through the exchange rate between stS and $S. Users can always swap back to $S through liquidity pools, or go through the native 14-day unbonding period to withdraw directly. The staking process is secured through validator delegation, and audited smart contracts govern all mechanics.
Proof of Liquidity and Commitment
stS is already live and earning on Beets. Liquidity pools between stS and $S (and other assets) exist and are growing, and Beets’ incentive structure supports deeper integration. Specific commitments around liquidity or gauges can be explored during the ARFC stage.
References and Resources
• Beets Finance main site – beets.fi
• Beets documentation – docs.beets.fi
• Beets Staked Sonic on CoinGecko – coingecko.com
• Beets Staked Sonic on CryptoRank – cryptorank.io
Disclaimer
This proposal has been prepared independently. No compensation has been received for its drafting. Some contributors may hold exposure to Sonic or Beets-related assets.
Suggested Path Forward
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Open a TEMP CHECK for initial feedback and alignment
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If positive, escalate to Snapshot vote
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Draft and publish a formal ARFC for community and service provider input
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If the ARFC Snapshot passes, submit a final AIP vote for implementation