Sonic Labs launches USSD, a native stablecoin to reverse ecological decline

Comparatively, Sonic Labs released the native stablecoin US Sonic Dollar (USSD), which is positioned as the core stable liquidity layer of the Sonic DeFi ecosystem. USSD is built on Frax's frxUSD infrastructure and has received institutional endorsements from BlackRock, Superstate, and WisdomTree, and is anchored 1:1 with the US dollar. It supports zero-fee minting on more than 10 chains through USDC, USDT and other assets. Currently, a total of 12 chains including Sonic, Ethereum, Base, and Arbitrum have been launched.

Background of this launch: Sonic TVL has plummeted 97% to $34 million from its May 2025 high of $1.1 billion, and the native token S also dropped about 96% from its all-time high of $1.03 in January 2025, leaving a market capitalization of only $150 million.

Sonic said that the USSD revenue stream ecosystem is used for repurchases and incentives, with the aim of building a self-reinforcing liquidity cycle and getting rid of dependence on external market makers.