APY – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Wed, 09 Apr 2025 22:29:42 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.8 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 APY – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 NEO and GAS post double-digit gains amid 50% APY incentive program https://earlybirdsinvest.com/neo-and-gas-post-double-digit-gains-amid-50-apy-incentive-program/ https://earlybirdsinvest.com/neo-and-gas-post-double-digit-gains-amid-50-apy-incentive-program/#respond Wed, 09 Apr 2025 22:29:41 +0000 https://earlybirdsinvest.com/neo-and-gas-post-double-digit-gains-amid-50-apy-incentive-program/

NEO and GAS recorded 13% and 30% daily gains as of press time, respectively, fueled by trading activity with Korean won (KRW) pairs on Upbit. 

According to market data, NEO posted $54.4 million in volume on its KRW pair, while GAS registered $134.6 million, ranking both assets among the day’s top movers across digital asset platforms.

The price hike follows a steep 44% decline for NEO between March 24 and April 2 and a 32% decrease for GAS in the same period, reversing the crash and surprising market observers.

Neo Bond program

The surge coincides with the recent launch of the Neo Bond program, a market stabilization initiative launched by the Neo Foundation. 

The Neo Bond program opened for participation on April 5 with a seven-day deposit window. The initiative allows NEO holders to lock their tokens for 30 days in return for a 50% annualized yield and a $5 price guarantee at maturity.

Structured as a fixed-term vault, the Neo Bond is designed to support market stability through voluntary token lockups and confidence incentives. Participation requires sending NEO from personal Neo N3 wallets, and funds are returned automatically to the same address after the term, including interest and any compensation if the token price falls below the $5 threshold.

The Neo Foundation pre-funded the bond with 1 million NEO in a multi-signature wallet to ensure liquidity and guarantee payout capability. The address manages all publicly verifiable bond funds. 

Korean retail flows

Market data from Upbit shows intense KRW trading activity in both NEO and GAS. The KRW-denominated demand contributed to a sharp uptick in price for both assets, although price action outside of Korean markets remained more muted. 

On April 9, the NEO/KRW pair accounted for over 60% of the token’s global trading volume, while GAS/KRW approached 70% of the total volume, indicating regional concentration.

The relative surge in GAS volume suggests either derivative hedging or retail interest fueled by the Neo Bond program’s promotional visibility.

While GAS is only used to pay fees for operations on the Neo blockchain, its price is highly correlated with NEO. On the Pearson Correlation Coefficient, over the 1-year timeframe, GAS shows a 0.94 positive correlation with NEO, rising to 0.96 in the 1-month timeframe.

The Pearson Correlation Coefficient estimates the relation between two variables, ranging from a total lack of correlation (-1) to a complete correlation (1).

Mentioned in this article
Latest Alpha Market Report
]]> https://earlybirdsinvest.com/neo-and-gas-post-double-digit-gains-amid-50-apy-incentive-program/feed/ 0 29944 Andre Cronje teases algorithmic stablecoin on Sonic with projected 19%+ APY https://earlybirdsinvest.com/andre-cronje-teases-algorithmic-stablecoin-on-sonic-with-projected-19-apy/ https://earlybirdsinvest.com/andre-cronje-teases-algorithmic-stablecoin-on-sonic-with-projected-19-apy/#respond Wed, 26 Mar 2025 01:10:10 +0000 https://earlybirdsinvest.com/andre-cronje-teases-algorithmic-stablecoin-on-sonic-with-projected-19-apy/

Sonic co-founder and lead architect Andre Cronje teased plans on March 25 to launch a new algorithmic stablecoin on the network within five weeks.

Cronje highlighted that the new stablecoin could offer over 19% in annual percentage yield at $1 billion total value locked (TVL).

He previously said on March 20:

“Pretty sure our team cracked algo stable coins today, but previous cycle gave me so much PTSD not sure if we should implement.”

Cronje referred to high-profile scandals involving algorithmic stablecoins like TerraUSD (UST), which collapsed and caused nearly $40 billion in losses for investors. The episode triggered widespread scrutiny of algorithmic models for stablecoins.

Despite initial hesitation, Cronje proceeded to share technical benchmarks. On March 22, he published a proof of concept (POC) indicating the stablecoin would yield over 200% APR at $10 million in TVL, decrease to approximately 23.5% at $100 million, and stabilize near 4.9% beyond $1 billion in TVL. 

On March 24, he reported optimization breakthroughs that significantly increased yield potential. He said in a post:

“Yohaan just found a way to turn this into 95.9% APY at $100m TVL, and 19.18% at $1bn+”

Cronje did not disclose specific details on the stablecoin’s algorithmic mechanics, collateral backing, or on-chain controls. However, the yield curve implies a variable-rate return system based on liquidity tiers.

Additionally, the yield model suggests a scalable incentive mechanism where early adopters are rewarded with higher returns, gradually normalizing as liquidity deepens. 

A $230 billion market

Sonic, a high-performance layer-1 network, is positioning itself as an execution environment optimized for financial applications.

According to Cronje, the network is tailored for high-throughput and low-latency operations, suggesting a stablecoin product could serve as a core component in its evolving ecosystem.

The stablecoin market recently surpassed $230 billion in total value, led by Tether’s USDT’s $145 billion market cap, followed by Circle’s USD Coin (USDC), which has a market cap of $58 billion.

Despite USDT’s dominance, new entrants are posing real competition in the sector, including Ethena Labs’ USDe, which registered outstanding growth over the past year.

USDe, which is also an algorithmic stablecoin, climbed from a $1.3 billion market cap to $5.4 billion within a year.

Mentioned in this article
XRP Turbo
]]> https://earlybirdsinvest.com/andre-cronje-teases-algorithmic-stablecoin-on-sonic-with-projected-19-apy/feed/ 0 27229