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Re-Lending on Sonic w/ @246_Club & @Rings_Protocol
Recorded: June 13, 2025 Duration: 0:36:06Space Recording
Short Summary
In a recent discussion, key players from the Sonic ecosystem unveiled exciting developments, including a strategic partnership with Coinbase and the launch of the Rings Yield-Bearing Stablecoin. The conversation highlighted innovative yield strategies and the potential for significant growth as the DeFi landscape evolves.
Full Transcription
Thank you. yo yo yo what's up guys it's luce falso behind the mic we'll get started uh soon right now we
got a cool little topic here about relending on sonic we'll introduce 246 club uh we do have fig from rings joining us but we'll
give it a few minutes uh so more people can join uh and we're back to to these spaces where we
highlight teams highlight protocols and highlight what's going on in the sonic ecosystem so we'll
give it a few uh make sure you share it and then we'll get we'll get started soon Thank you. I'm going for Fig from Rings.
all right thanks for everyone for uh joining we'll get started shortly thank you so much
make sure um you share it retweet it let's see okay we got both of our speakers up here we'll
get started right now obviously with some updates uh from the sonic side obviously you guys have been keeping up with what's what's going on uh some big news
uh we'll go over it in a little bit and then we'll get started to introduce 246 club talk about some
re-lending uh their re-lending protocol um fig is here from rings talk about how they integrate
what their what their role is here, yeah, we'll get going shortly. Thank you. All right, we'll get started for now to record space.
So obviously more people will kind of jump in as they can.
And then they'll definitely have time to
to listen to the recording and push so we'll get started some updates obviously if you guys have been keeping
up one of the biggest things that took uh this feed by storm yesterday was the coinbase uh coin
base adding s on the roadmap so that's
pretty it's been a lot of hard work we obviously had a chat internally uh mostly bd shout out to
the assistant and um sam for obviously working relentlessly on that for the last uh handful of
years um and i think it's been it was a bittersweet moment uh we jumped on the call as a team
to talk about you know how long it's taken but it got done so uh it was a goodtersweet moment. We jumped on the call as a team to talk about how long it's taken, but it got done.
So it was a good feeling just to see the team cheering for each other and such a big accomplishment.
Obviously, there was a space yesterday with the assistant.
Unfortunately, I couldn't attend.
I was unavailable, but it was a good space to kind of talk about everything that's going on.
available, but it was a good space to talk about everything that's going on.
Also if you guys have noticed, the assistant has also started his Sonic Sync where he's
invited guests.
So far he's at ODX.
Yesterday he had a very eventful one with Danny from Wagme and Hey Anon.
It's really good to start tapping into a lot of the protocols and bringing these back up.
That's pretty much the purpose of this space again, to introduce new protocols, introduce
protocols that have been here, have been building on Sonic and utilizing the tech, utilizing
the VM.
And yeah, obviously there's a lot of things outside.
I won't get too into it, but obviously there's a lot of things outside out of our control.
But as a foundation, as a labs, we are very focused on just providing the
best experience for both developers and users with our incentives. And obviously the team
keeps working. The team, every single team member is hard at work. So we appreciate you guys
supporting us throughout the way. Again, I will say this on behalf of the team. We always appreciate feedback and a healthy criticism, but we will always push forward past any negativity. That said, let's go ahead and introduce our speakers. I'll go ahead. 246 Club, who's behind the mic today?
Yeah, I'm coming here.
Awesome, Glovin. Thank you so much for being here. We'll start with some introductions soon. And Fig, how you doing?
I'm doing fine.
How about you?
Awesome.
You guys may be ecstatic with the Coinbase list roadmap, right?
Congrats.
Yeah, yeah, of course.
Yeah, the team's been hard at work on that, and they made it happen.
Obviously, BD handles a majority of that.
Now it's mine and Ash's job afterwards to fully market it.
But obviously, you know, it speaks for itself.
So thank you guys for both being here.
Glovin, can we start with an introduction?
You know, who are you?
What's your role?
And, you know, how long have you been in the space for?
Yeah, first of all, thanks for having me.
And I've been in the space for about five to six years as of now.
Started as an analyst, a small crypto venture capital base in South Korea.
Moved back to social finance in the real estate space.
Joined back, started researching developing in the lending space
since about three to four years with my co-founder,
who unfortunately couldn't make it today.
Now I'm building 246 Club.
I'm one of the co-founders.
TLDR, we let bars to have their collateral on one market
and to borrow from another.
And today we have Fig from Rings.
We're starting with Rings Yield-Bearing Stablecoin,
which is wrapped as 2KSC USD as a collateral to borrow from Aave.
And what's making this possible is the other side of the market, which is re-lending,
which is the topic of today's space as well, is essentially letting existing lenders of Aave
or new lenders of Aave to keep their lending position intact and yield intact, but earning
something on top, earning additional yield by
delegating the borrowing part, which again, fuels the cross product alone. Yeah, I can get into more
detail about the mechanism, but yeah, that's, I would say the high level TODR. Awesome. Yeah,
we'll get into the weeds of it because that's obviously the first question I have here. But
before we move forward, Fig, just introduce yourself once again. Obviously, people know who you are, but what you do. And then I just want to make something clear here too. Throughout this conversation, obviously there's going to be a high focus on the 246 Club. But Fig, please feel free to kind of chime in on the questions on how Rings kind of plays a big role on this. But right now we'll start with your introduction.
Yeah, there's plenty of people who probably don't know us.
We've had a very big outflow
in community growth over the past weeks.
So thank you everyone who's been following us
and joining the adventure.
I'm Fig, one of the co-founder of Rings,
formerly known as Rings.
We just announced that we'll be rebranding
to Trevi. And we are a meta stable coin on Sonic. We have SCUSD, ETH, and SCBTC. We're
offering some of the probably the best yield without incentives for USD, ETH, and soon,
very soon, BTC and on the onsonic. Amazing thank you thank you so much Fick yeah
congrats I know rebranding is always obviously take time it's a big decision but we're looking
forward to that and as always supporting you in that. Glovin obviously you touched a little bit
on it but you know can you kind of go into the weeds of it?
What is the primary purpose and vision for the 246 Club here?
I would say a one-liner, a very concise one-liner type explanation would be a conduit between credit and yield.
Barring the core principles of finance of allocating idle capital, idle
credit into something more efficient and profitable.
And essentially we're sourcing credit from Aave, which in most cases is underpriced compared
to other rates and allocating that to higher yielding opportunity.
In this case, it's rings, yield bearings, stablecoin, and capturing the spread in between.
And how it works is to start from the part where you source the credit from Aave is,
so if you have a lending position on Aave, let's say you have deposited 100 USDC,
you get 108 USDC.
And that A token is two things.
One, it's a deposit receipt receipt which you earn your yield on top
and it's a collateral stake which means you can borrow against it. So if the LTV for USDC is around 80% with 100 AUSDC you have 80 USDC worth of borrowing power And instead of using that barring power for your own loan position,
we're letting lenders to monetize that by delegating only the barring power portion
of their position to the protocol, which is then used by the bar who uses
high yielding collaterals like RepTest, DKS, CUSD to capture spread in between.
So you can think of relending as the supply side of the market of 246 cup.
Supply side of the market and lending markets is obviously lending or supplying an asset to the pool
so that the borrowers can borrow against different set of collattals that are allowed by the protocol.
In this case, the supply side of
the market is not about supplying an asset itself but supplying the borrowing power or extending the
credit for the uh to the protocol um so that the bars can borrow um using that barring power against
glattles like um rings yield bearings, stable coin.
Yeah, sounds interesting.
Obviously, I understand the complexity of it behind it.
I mean, lending and borrowing itself,
I know most of the people here listening are DeFi heads,
but even for the common consumer,
it could be a little bit difficult.
But this obviously adds complexity. But also, like you said,
you're taking advantage of some of the,
I don't want to say loopholes, but things aren't taking advantage and delegate.
You mentioned delegating the borrowing power.
We could talk a little bit about that more.
Right. And I'm sure that's part of the unique aspect of 246 Club, which is my next question.
You know, what makes what makes 246 Club extremely unique from just a regular lending market?
What makes 246 Club extremely unique from just a regular lending market?
You touched a little bit already on it in terms of taking the receipt token, the A token from Aave once you deposit.
But can you kind of elaborate more about the uniqueness behind it?
For sure, for sure. of what we're building is in our approach of being as symbiotic as possible rather than
being in a tough position of praying that the competitors or the protocols in this space
relying basically relying on the failure of the protocol the big protocols in the market but
rather bringing what each pool needs.
So for instance, if Aave rates are low,
that means there are more supply than demand.
If one yield source is high yielding,
that means there's more demand than supply.
And we're essentially solving that in balance.
So that's from a very high level,
from a macro perspective, I would say.
From the user's perspective, I guess the biggest value proposition is extending what they already have and offering something better on top.
So I guess this has fairly worked out pretty well across all verticals
about keeping their existing position and yield or whatever benefits intact while
earning something on top.
It has proven to be successful with Morpho Optimizer back then with, I guess it's a bit
adjacent, but with MEV Boost where validators can keep their setup but earn some additional
yield on top.
So I guess maximizing the benefit
that the existing users couldn't tap into
would be the one of the uniqueness
instead of trying to build everything from the ground up
and trying to compete directly with the protocols.
So from the user's perspective,
how it actually works out is by existing lenders,
a lot of Aave lenders usually don't borrow against their position a lot. Most of their position has low LTV or no LTV at all, not borrowing at all,
which means they prefer lending and getting passive yield out of that.
And because they're in such position, they're missing out opportunities where they can
utilize their barring par and be a bit more active to squeeze a bit more yield. We led users to keep
their passive position and lending position and the yield and offer something on top of that.
I guess that's one of the uniqueness. And also in terms of the protocols that we integrate on the collateral side, you can keep earning the yields, rewards, whatever it is that is coming from the yield bearing stable coin.
In this case, rings yield bearing stable coin and bar against it at a cheaper price.
I guess like trying to be in a symbiotic position where we tap into the market and efficiency, helping the protocols,
but also offering something better for existing users of these protocols is one of the uniqueness that we aim to offer and something that we are offering.
Yeah, that's quite interesting because you bring up a good point about many people who deposit on Aave don't utilize the borrowing power, right?
So therefore, in this case, for the lack of a better word, their lending position is sit idle.
Yes, you're earning, let's say, I don't know, 4.5% on your USDC deposit, for instance, right?
But then you could use and delegate that borrowing power to something on your protocol to even earn more yields.
Is that correct?
Exactly. Yeah. That's very, very interesting. And like you said, that's on the user aspect. And, you know, at the protocol level, you're also utilizing this is where rings comes
in. And this is this question is for both of you to chime in. Maybe Fig, you could also chime in
here. You know, what what is what do you guys have planned with each other and with rings? You guys have already mentioned the asset wrap state, CUSD, but what are further plans here?
Fig, do you want to chime in here?
Yes, of course.
Well, allow me first to say that I'm terribly excited about 246.
I think that what Glovin and his team have done, something that we haven't seen for a while,
it's real composable Defy innovation.
We haven't seen this for a while. It's a new primitive, it's well-designed,
and it works in synergy with previously built primitive. Something that we haven't seen a lot,
and that's a big part of the credit economy, is inter-banking relationship. Today, if you look
at the relationship between Ava and Morphe, example, they're very antagonistic. They're all fighting together. The thing is
the market is very big for credit and as it starts expanding there's going to be
a lot of opportunity and the opportunity are not just with retail users or
institutional, they're also between different protocols. And this is what we
see in the TradFi world where banks interact with each other and loan out
money to each other and loan out money to
each other. So I think what 246 is doing is the first brick towards this sector that has not been
exported yet by DeFi, which is super important because it's going to weed out a lot of inefficiencies
and it's going to create more value from the same amount of TVL that already exists. And that's
basically all of the strength we
can get from DeFi. This is how we keep growing. It's not just by growing by
making new people come in but by growing the dollar value that we can build on
the assets we have already. So I'm sorry I circumvented a bit the question but
we're very excited to have Staked-A-C-USD as the first collateral option
because it's going to give a new opportunity
for people to leverage on top of it.
For the past three weeks,
I think our yield was around 8.5%.
If you looked at the other rates,
they were around 1.5% for ball rates.
So there was a huge spread to basically earn.
Right now, our yield is a bit lower.
We're doing an off week.
Unfortunately, it happens.
But basically starting next week,
we'll probably be back to these heights.
And it will enable a very interesting scale lending to happen specifically on there.
So you'll be able to borrow Staked SC USD from any markets. We had a lot of activity on Euler, on Silo,
but there was no activity on Aave because we're not listed there. Because 246 exists now, we can also get the capital from
Aave to be used for this. And the good news about this is that means that if you're an AUSDC holder,
where you've been farming 5 to 6% APR lately, plus points, well basically on top of all of this,
you'll be able to get relendinglending apr which is basically lending that basically selling your
uh ability your credit delegation to someone else and this is probably going to be one of
the most competitive lending rates in the market for the coming months
yeah it's pretty it's pretty unique i mean it's pretty fascinating like you said we haven't seen
something like this and it's really cool to see this on Sonic and leveraging such a powerhouse like Aave.
Do you want to chime in on that, Globin? On anything on top of what Fig said? About your guys' plans together, you know, with rings, etc.?
No, I guess Fig pretty much covered everything. Just to add on the interbanking, I guess I pretty much agree with that. That was one of the core rational or
inspiration behind the design of, again, barring the core principle of finance of idle capital
having to flow to somewhere more efficient. It's been happening between lenders and bars,
lenders with idle capital lending to bars who can more efficiently and more effectively
make use of that capital.
And we're expanding that to protocol to protocol level.
And I guess our next step would resolve around what the name suggests, cross protocol loan.
So it's going to be more expansion on the yield side, I guess, which will continue to revolve around the primary yield source of ReptSDK, CUSD.
I'm not trying to leak a lot of things here, but just imagine something like if you are lending a CUSD to the lending market on Sonic,
you are lending a CUSD to the lending market on Sonic.
And you can basically bar against that lending position
to earn whatever you used to earn
by lending that CUSD to that lending pool,
but with some multipliers or with some more yield on top.
So I guess our role within the ecosystem
is making capital more efficient and making idle, stuck capital to flow into something
that can be more productively used.
And we're starting that with Aave and between rings.
And I guess like this to expand to the entire ecosystem level
to make the entire sonic ecosystem as a whole more efficient.
Amazing. Thank you so much.
Before we move forward, I just want to make sure I give a shout out to all our people here tuning in.
Can we just please give Glovin and Fig some 100s up here, please?
I always appreciate builders' time just because, you know, these things take time from building.
But, yeah, let's give them a round of applause.
And thank you for everyone tuning in.
Now, for the next question, this one's a little bit of, I guess, a triple threat here.
How does the system handle lending, restaking, and collateral workflows?
246, or Glovin, can you please kind of elaborate on that?
For sure, for sure.
I guess
it's better to explain things from the user's
perspective always. So
as an existing lender of Aave,
if you
go to app.246club.xyz slash sonic, you'll see different components on the table.
You'll see available balance, which will show you both the AUSDC, which is the actual relending
asset, and the underlying asset of AUSDC, which is USDC.
So even if you don't have an existing lending position on Aave,
if you don't have an A token,
you can essentially zap into lending, then to relending.
And what's happening at the back end is, as I've said,
we virtually account for all these barring power in aggregate.
So these A tokens are stored in the pool.
And whenever bars come in bringing in
wrapped SDK as USD and again here even if the bar does not or the ones who want to borrow from
two for six does not currently hold wrapped stake as USD we have different options for them to zap into ReptSDK, SCUSD with USDC, SCUSD, SDK, SCUSD, basically the depositable assets of ReptSDK,
SCUSD. And these collattals are, and again, you can zap into these collateralized,
and let's say I want to borrow 50 USD out of that. Then the amount of collateral that is needed to back these 50 USDC loan from Aave is being
delegated from the pool that we had, which comes from the relending positions, is allocated
to the bar with a proxy account on the back end and will essentially allow this crossbroke
loan.
So when bar opens a position, collateral is stored or collateralized within 246 Club,
and there is a proxy account that facilitates a loan
on behalf of the bar, which is invisible on the UI.
But on the back end, there is a position created on Aave
to facilitate this crossbroker loan for bars to borrow from Aave
while using collateral that are listed cloudolized within 246.
I mean, it's clearly pretty complex. Like you said, thank you so much for making it
as best possible to understand as a user. And it seems very complex. And I mean,
obviously, with all this complexity comes security, right? As always, you know, as we always tell people on behalf of the foundation,
always do your own research, read the docs, et cetera.
But what do you guys, you know, what security measures have you guys taken,
risk controls, et cetera?
Fig, please feel free to chime in here as well.
But I would love for you to talk a little bit about that, Glovin, as well.
little bit about that Glovin as well. Yeah, well, I think what's important to
understand is that there's two kind of risk. The one is additional smart contract
risk, of course, but the second one is simply that your lending to someone
else is collateral. The chances stake to CUSD is correlated to stablecoins. It's backed 1-1 by stablecoins and it's compounding deals.
So it's already worth over a dollar.
I think it's worth almost $1.01 right now.
And it's going to keep compounding in terms of growth.
So the real risk you're taking with that collateral is that eventually rings as a protocol loses part of its packing.
Thankfully, outside of the fact that we have a very strict risk management policy,
we're building one surplus buffer with part of our revenue in order to avoid this happening.
So the goal is that SCUSD and Staked SCUSD are never under-collateralized,
and we're building a token buffer that users are going to
be able to deposit their governance token into the protocol, and in exchange of revenue, they will
basically be backing up a CSD in case there is a problem. So it is a safe strategy. It's as safe
as it can. Of course, it's taking additional risk risk but what's very interesting is that we're using composability to basically earn multiple layers of yield and make what is probably one of
the most competitive yields in the market for uhtc especially considering the risks that there are
thank you fig anything you want to add to that globin
Anything you want to add to that, Globin?
Yeah.
So as Vic mentioned, there are multiple layers of risk.
Smart contract risk is one of them.
Starting from that, we were advised
by one of the security researchers that I personally
want, one of my personal friends.
And I guess the entire development process result
was around some of the principles that he advised
and that our dev team took really serious about.
And we've gone through multiple audits from solo auditors
just to get things started.
And recently we got one audit from Mixed Plates,
which we will continue to get more audits down the line.
And there are some risks outside of collateral risk that FIG has mentioned.
Collateral risk and liquidity risk, I guess that's the major thing in lending markets.
Collateral risk, I think FIG has pretty much covered everything.
And liquidity risk, we have some unique interest rate models,
which dynamically adjusts based on the supply and demand, somewhat like Morpho and Euler try
to implement within their interest rate models. Yeah, basically, from like the re-lenders
perspective, I think it might be too much of a detail. but just to touch on, it's most likely having a senior exposure or more safe exposure to the collattals that we list in the underlying market.
So if you lend against an asset, you still have an exposure over that asset.
And in this case, that's ReptSK, KS, USD.
ReptSK, CUSD. So the point that I wanted to give here is that if you want to bear a bit more risk
in terms of having direct exposure to the collateral that we have on our market, and if
you want to be more active managing your own LTV or health of your position, I guess barring from
our protocol would be the most suitable thing for
you to try on 246 Club. If you want to be more passive and have a bit more safety buffer against
having direct exposure to the risk of the claddles, I guess relending would be the thing for you.
We have everything on our docs in terms of what to consider when you relend or when you
borrow from 246. And just to add on, in terms of the liquidation that we have, which is one of the
core risks that the borrowers have to take into account, we have a soft liquidation or dynamic
close factor, which means your position is not always forced to be close up to something like 50% or 100%,
but it gradually increases from something like 20% up to 100%.
So if your risk is at a moderate level,
although it's still over the threshold where the position has to be liquidated,
your position is only liquidated something like 20%
instead of being too punitive in terms of the liquidation measures,
especially because it's correlated assets. Awesome. Thank you for both for kind of diving
in, obviously, deeper into all the measures you guys have taken for this to obviously be
successful and smooth for everyone participating. So as we come to a close, I just want to thank
you, Glovin. Thank you, Faye, for taking the time out of your as we come to a close, I just want to thank you, Glovin.
Thank you, Faye, for taking the time out of your days to come chat with me, give us a high overview.
Obviously, this is a fresh new protocol, offers some fresh new incentives for people to kind of
try something new, take advantage, like you said, take idle lending assets on Aave and take advantage
of the borrowing power and delegate it to earn even more yield. So I'm excited to kind of tinker myself.
I'll obviously provide feedback from my experience to you guys.
But before I let you guys go, anything, any alpha, anything you guys want to share?
I know Fig, you mentioned a rebrand.
Is there more to that?
And Glovin, anything that you could share maybe you know in the coming weeks what can we expect etc
oh well there's quite a lot you can expect more from us especially with 246.
As we mentioned the looping quality is very dependent on the yield from
stake to cusd we had very big plans in order for this to be a very juicy strategy.
Unfortunately, we had a few operational delays, which often happens to be honest,
that delayed probably to next week, the juiciness of the Stakedest USD. So the looping will be much
more interesting starting next Thursday than it is right now. We expect the spread to be pretty
high. The good news is that it also gives time to people
who have AUSDC on Sonic to deposit it into a 246
and earn a lot more yield than what they're earning now.
I think two things that are gonna be very interesting.
The first one is when these 246 AUSDC deposits
become composable.
I hope I'm not clicking too much, Globin, I'm sorry.
Because the thing that we can play with is a lot of other things in 2D5, for example, pendals and other strategies.
And the other thing that's going to be super interesting is oncedc stake to cusd and what we call live usd
amazing glovin you want to close it off there any anything that we could expect
yeah for sure um i guess like as feck mentioned, the rates of Stake SESD getting up
again would be an interesting thing. And another season of Sonic Points would be another thing.
And as Fik slightly mentioned, the composability of re-AUSDC would be another thing. We're
internally preparing for a lot of different integrations
across the ecosystem.
We are a protocol that can only be successful
if the protocols that we integrate are successful.
We're on the same line in terms of
bringing more supply and demand to where it's needed.
Yeah, I'm pretty excited for everything's that coming.
Not a lot of alpha that I can share at this moment
you'll see on Twitter
we'll make different announcements in the coming weeks
but yeah like before I end
I guess I would really like to thank the entire Sonic team
and Fig for basically bringing me to the ecosystem
and the amount of support from the entire ecosystem team
especially Johan, who's
been extremely supportive as a protocol that has, that tries to empower this DeFi composability at
its core. I guess what really matters the most, I mean, what I personally do as a founder every day
is how and what to connect within the market and what kind of opportunities that are possible out there.
And on top of that,
how we can bring more supply and demand to the market.
And Johan and the entire Sonic team
has been extremely helpful
in terms of ideating through these opportunities together.
Fig as well, everyone extremely responsive
and was a great partner to work with.
Yeah, I'm really excited for what's ahead.
Yeah, thanks for having me here today.
Well, thank you, Glovin.
Thank you, Fig.
Again, I appreciate you guys' time.
I know it takes away from building,
strategizing the next steps for you guys,
but we're excited that you're building on Sonic
and utilizing against Sonic's tech
and just producing products that are fresh, novel, you know, bring something else to the space.
So for everyone here listening, thank you so much for tuning in once again.
Go ahead and give a round of applause to Glovin and Fig.
And we'll see you guys. I'm excited to keep in touch with you guys to see you guys' progress within the next, obviously, few months.
So we'll stay in contact.
And hopefully we can run this back to see some of the results you guys have been observing on your guys' side.
So thank you all.
And I hope you guys have a great weekend.
See you.
Yeah.
Host
Sonic Labs
from
Wrapped Sonic
