I've seen a few people talking about low Aave TVL on @SonicLabs One thing that has the potential to boost it is ftUSD from @flyingtulip_ ftUSD is a stablecoin with a dollar target peg that will be used for trading, settlement, and collateral on the platform Backing the peg will be a variety of delta neutral strategies utilizing minting collateral; illustrated in their docs is the example using Aave on Sonic In this example, the backing USDC gets deposited, S gets borrowed against it and staked for yield staked S can even be redeposited at that point and with current rates this generates a net yield It will be optional to switch into a yield bearing version of this stable to receive a yield claim; otherwise, yield on unstaked value goes to the protocol as well as helping to deepen liquidity There are some other effects that can come downwind of this, such as: > hefty USDC deposits could drive down borrow costs and provide plenty of liquidity to other DeFi strategies > Yield on staked ftUSD creates a new stable yield base layer, other protocols could build on top of it > sftUSD has the potential to be looped and used in other strategies similar to how the mainst synthetic dollar has been operating on sonic for example > This strategy could 'absorb' a lot of S off the market You get the idea. Overall this can position ftUSD as a TVL/activity amplifier for Aave and the wider ecosystem Don't forget the initial rollout and FT token mint is on Sonic, this can bring in a lot of liquidity to ftUSD and the chain also...
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