Learn about the Sonic ecosystem DEX Metropolis' strong rise! METRO coin price soars 8.45 times

Sonic's ecological growth was strong. As of yesterday (24), DeFiLlama data showed that Sonic's net capital inflows reached US$37.98 million in the past seven days, ranking among the top three in the public chain. At the same time, the tokens in multiple DeFi fields in the ecosystem performed well, further promoting market popularity.

As a public chain helmed by DeFi godfather Andre Cronje, Sonic has attracted much attention on the DeFi track. Therefore, this article will focus on Metropolis, the fastest growing DEX, to explore the reasons why it is favored by the market.

Metropolis TVL grew by 171% in a single week

According to DeFiLlama data, Metropolis currently has US$10.62 million, an increase of 171% in the past 7 days, and has soared by 387% in the past month. It has jumped to the 11th place of Sonic Ecological TVL, demonstrating its important position in the ecosystem.

According to official website data, Metropolis' liquidity continues to rise, exceeding US$11 million, and trading volume has increased significantly in the past week. Although there is still room for further expansion, its rapid growth trend makes it an important project within the Sonic ecosystem.

In terms of price performance, the platform token $METRO soared from US$0.4 on the 17th to a high of US$3.38 on the 23rd, and it rose 8.45 times in less than a week. It is temporarily reported at $2.43 before the deadline, with a market value of $12.1 million.

The following will introduce Metropolis' liquidity mechanism, participation methods and the empowerment of METRO tokens.

What is Metropolis?

Metropolis is a native DEX on the Sonic chain, and uses two different liquidity mechanisms: AMM (Uniswap V2) and DLMM (Trader Joe V2.2) to provide trading functions.

1. AMM: Automatic market maker, using the constant product formula (x*y=k) to ensure the price adjustment of assets in the liquidity pool.

2. DLMM: The full name is Dynamic Liquidity Market Maker, also known as Liquidity Book. This is a liquidity hierarchical mechanism developed by the Trader Joe team. It allows liquidity providers to concentrate funds in specific price ranges and introduce dynamic handling fees (in case of large market fluctuations, the handling fees increase) mechanism to reduce impermanent losses.

This has two benefits:

• Zero slippage trading: Trading within a single price range (bin) will not produce slippage.

• Higher fee income: Through dynamic fee and centralized liquidity, the same amount of funds can generate higher fee income.

In terms of "process fee allocation", the two liquidity mechanisms are also different. DLMM provides a higher proportion of LP fees reward, while AMM gives $METRO pledges a higher return. See the table below for details:

Differences in distribution of fees for AMM and DLMM

Beginner of gameplay

After entering the Metropolis official website, click "Earn" above to enter the "Farms" screen

Select Simple V2 or DLMM mobile pool.

If you select Simple V2 liquid pool, you only need to deposit the tokens; and if you select DLMM liquid pool, you can click Management (manage, Figure 1), and then click Advanced to set the liquidity within a specific price range (Figure 2). You can refer to the official DLMM strategy teaching to get more insights on providing liquidity.

Figure 1

Figure 2

In addition, the official also launched the LP competition to reward users on the ranking list $MGEM tokens (you can get $S airdrops in the future).

NFT soared 7.6 times in one month

In addition, Metropolis has also launched its own NFT series with a total of 777 pictures, divided into 3 categories: characters, lizards and robots, and can be traded on Paintswap, Sonic's native NFT trading market.

Metropolis early provided NFT holders with $METRO token whitelist qualification and planned to airdrop 250,000 $METRO (about $500,000) to holders six months after TGE (i.e. July 26).

One month ago, the NFT price was only 150 S, and now it has soared to 1,150 S (about 830U), a 7.6-fold increase.

$METRO Token Economics

According to the official introduction, the total METRO is 100 million, and the token allocation is as follows:

Fair issuance: 5%

• NFT holders airdrop: 0.25%

• Liquidity mining: 45%

• Core contributors: 2 0%

• Partners: 4.75%

• Future Growth: 25%

• In the liquidity mining configuration, 30% of emissions are voted by the $METRO stakeholder (this is the main purpose of the $METRO token), and the remaining 70% is directly allocated to the main liquidity pool by the agreement.

  In addition, Metropolis, as the winner of the Sonic Boom bounty program, will receive nearly 200 million USD airdrop distribution, and Metropolis will distribute the obtained $S to the holder of another token issued by the project, the $MGEM.

  $METRO token use: pledge, vote, get bribe rewards

  The main uses of $METRO tokens include pledge to obtain real income from the agreement fee (issued in USDC), and voting to determine 30% of the $METRO emissions.

  The lock-up period for pledge is 7 to 365 days, corresponding to different reward multipliers (see the figure below for details). To have voting rights, you must lock the position for at least 90 days. 1$METRO is equal to 1 vote, regardless of the length of the locked position.

  

  The owner of liquidity pool can incentivize $METRO stakeholders to vote for a specific liquidity pool through Bribe, so that the pool can receive $METRO rewards. This is the additional source of income for $METRO stakeholders.

  Voting and Bribery Mechanism

  • Each voting cycle (Epoch) lasts for 1 week.

  • Voting qualification: The lock-up time must exceed 90 days, and the remaining lock-up period must be longer than the current Epoch (cycle).

  • After the vote is over, a mobile pool with more than 20,000 votes will receive a $METRO reward. Additional details are found in the table below:

  Voting Strategy

  Prefer to pools that generate the most fees in the last two weeks, as they usually bring higher returns.
  Bribery affects voting results, and choosing to offer high Bribe pools may receive additional rewards.
  The earlier you vote, the higher the reward, because the Bribe reward decays linearly over time.
  It is recommended to vote two days before the start of Epoch to observe Bribe and get the most profit.
  Summary: Is Metropolis worth participating in?

  In summary, Metropolis provides zero slippage trading and higher returns opportunities through DLMM, and is built on Sonic high-performance public chain, bringing a smooth user experience and is worthy of personal participation by users. In addition, participating in the Sonic ecosystem can also accumulate points and receive $S airdrops after June, further increasing revenue opportunities.

  Users holding $METRO can pledge 7 days to enjoy the agreement fee income (issued at USDC), while loyal users can pledge more than 90 days to obtain voting rights and Bribe (bribery reward), further enhancing the effectiveness of $METRO. In addition, you can also get $METRO airdrop opportunities by purchasing NFTs.

  At the time of the current market pullback, participating in the Metropolis ecosystem is a strategy worth paying attention to.

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