ClayStack is on a mission to empower liquid staking users by offering a much simpler user experience to staking. The barriers to entry to staking may have reduced. But the overall experience is still falling behind.
Introducing Sonic, a meta-aggregator for the entire liquid staking ecosystem that lets users with any liquid staking token get out of their positions easily, immediately, and at the closest 1:1 redemption rate!
Sonic allows users to get in or out of the liquid staking token (LST) positions market quickly by providing discounts to users for fulfilling their trades early hence not having to wait for the unbonding period to end. This also allows users to get into the LST market at a discount, benefiting liquidity suppliers and LST holders.
As part of the DeFi Kitchen Hackathon, developers should build solutions/tools to help elevate the use of Sonic to its users. There are two tracks that users can go in: Analytics Track and DeFi Track. To better understand Sonic, head to the docs here. For the hackathon, start with Sonic here.
Remember: the winning project will be from either of these two tracks and will be entitled to win the $3K cash prize! The deadline to submit your work is 25th March.
Explore how you can build in either of these tracks below.
Analytics Track
Problem: DeFi has revolutionized finance by offering a more inclusive way to invest, borrow, and earn money. However, the space is still new and complex, and many users make the mistake of chasing high yields without understanding the true costs. To address this, your task is to build solutions that help users interpret the real yield of their assets, empowering them to make informed decisions and avoid misleading yields. Our goal is to maximize value and minimize risks in DeFi.
Some project examples include but are not limited to…
- analysis of most profits made on trades, tooling which scans the marketplace and identifies the best APY trades to make
- Personalized dashboards to track users’ earnings over time automatically from transactions
- Build oracles to monitor trades and exchange rates to be integrated with Sonic
DeFi Track
Problem: Capital inefficiency is a common problem that many investors face. It occurs when users do not use their financial resources effectively, leading to lower returns on investment or higher capital costs. To avoid such inefficiencies, it is important to carefully manage your capital and ensure you are investing in opportunities that will provide the highest returns.
Given users’ limited funds, it becomes even more important to extract the most value for both liquidity providers and LST holders. Your task is to find new and innovative ways to use Sonic to maximize utility for its users. This can be by complementing Sonic or introducing additional use cases for users on Sonic to alleviate this problem.
Some potential solutions include but are not limited to:
- Create a complementary LP pool that buys and sells active orders for the most profit, then distributes the yield to the LP providers.
- Build bots to automate trades and maximize profit yield with users’ idle assets in their wallets
- Integrate other technology, such as IPFS or zkRollups, and compress multiple transactions into one to increase efficiency on chains like ETH, where gas is very costly. Example: reordering transactions off-chain to obtain MEV
Judgment Criteria
You will be judged on the following metrics.
Value Proposition
- The primary criterion for any project should be how much value it adds to both the protocol and its users.
- As projects should be built around Sonic, the goal should be to enable users to extract the most value and for liquidity providers to make the best use of their capital. This should be at the heart of any solution.
- Additionally, it would be a bonus if your solution helps contribute to the decentralization of the protocol.
Innovation/Creativity
As the web3 space rapidly evolves with many new technologies and solutions, your solution's ability to capitalize on these newer technologies can greatly contribute to your team's project score.
Security
Claystack has always prioritized secure solutions and has not experienced any hacks to date. Therefore, any solution built should also prioritize security in its development, as we consider users' funds to be of utmost importance.
Deliverables
- Short writeup of your solution and how it aims to solve the chosen problem
- Link to implementation repositories (Github, GitLab etc.)
- Working PoC of your project
Submit your project by heading over to the hackathon page here. Click “Join Hackathon” to get started.