The Sonic blockchain is a Layer-1 EVM-compatible blockchain that stands out because of its speed and a unique feature called Fee Monetization (FeeM). Sonic processes over 400,000 transactions per second (TPS) with sub-second confirmation times, making it much faster than many other EVM blockchains. FeeM is a new economic mechanism where developers earn 90% of the fees from apps they build, as long as those apps increase activity on the network.
Shadow Exchange is a decentralized exchange (DEX) built natively on the Sonic blockchain. It uses an order-style concentrated liquidity approach, which focuses liquidity in specific price ranges to make trading more efficient. Shadow Exchange is designed to enhance usersâ trading experience by providing optimized liquidity management, reduced slippage, and an efficient trading environment.
Shadow Exchange is a decentralized exchange (DEX) built natively on the Sonic blockchain, launched in 2024 by a developer known as 24dollars. Itâs tailored for crypto beginners and intermediate users, offering a platform to swap tokens, provide liquidity, and earn rewards on the Sonic blockchain. Unlike typical exchanges, Shadow Exchange uses Sonicâs high-speed network to process trades in sub-seconds with low costs. Itâs similar to Uniswap v3/v4, focusing on concentrated liquidity, but optimized for Sonicâs high throughput and low costs, pooling liquidity in specific price ranges to reduce slippage for traders and boost provider returns.
x(3,3) is a core incentive mechanism powering Shadow Exchange on the Sonic blockchain, an evolution of the ve(3,3) model pioneered by Solidly. It allows users to stake tokens and vote on liquidity pools to direct token emissions, earning rewards proportional to their stake and voting power at the end of each epoch. Unlike ve(3,3), which often requires locking tokens for months or years to maximize rewards, x(3,3) removes mandatory long-term commitments, offering flexibility for short-term participation. This design suits active traders and liquidity providers who prefer adaptability over rigid lockups.
The process works through staking xShadow or $x33, the platformâs governance tokens. Users stake tokens and vote on liquidity pools to direct emissions, earning rewards per epoch without mandatory long-term locks. The more xShadow or $x33 staked and directed toward a pool, the higher its emission share, incentivizing strategic voting to boost returns. Rewards come from protocol fees and emission tokens, with the exact payout tied to the poolâs performance and total votes cast. This setup contrasts ve(3,3)âs focus on long-term holders by rewarding active engagement over passive locking.
xShadow, a non-transferable staking and governance token on Shadow Exchange, is the backbone of Shadow Exchangeâs reward and governance system. Itâs earned through SHADOW conversion or staking emissions, not purchasable on open markets, ensuring rewards go to active participants. It locks SHADOW for a user-selected vesting period of 15 to 180 days, enabling access to protocol fees, voting incentives, and rebase rewards. Users can cancel within 14 days for a full refund (1:1 SHADOW return). Exiting after 14 days but before 180 days incurs a 50% penalty, with the forfeited SHADOW redistributed to remaining stakers via PvP rebase.
Legacy Liquidity is Shadow Exchangeâs traditional liquidity framework, drawing from Uniswap v2âs design to support token swaps and liquidity provision on the Sonic blockchain. It operates through two pool types: volatile and stable. Volatile pairs match tokens by equal dollar valueâe.g., $50 of Token A with $50 of Token Bâsuited for assets with fluctuating prices like ETH or memecoins. Stable pairs, tailored for correlated assets like stablecoins (e.g., USDC-USDT), use a modified curve to minimize slippage and maintain price parity, which is ideal for low-volatility swaps.
These pools rely on the constant product formula (x y = k), where x and y are the quantities of each token, and k is a constant. Exchange rates and slippage adjust dynamically as trades alter the poolâs balanceâe.g., buying Token A reduces its supply, raising its price relative to Token B. Arbitrage bots monitor these shifts, trading against external market prices to rebalance pools and keep rates consistent, a process facilitated by Sonicâs sub-second finality and low fees ($0.001 average).
Concentrated Liquidity is the cornerstone of Shadow Exchangeâs trading and liquidity provision system, built on the Ramses V3 Core, an adaptation of Uniswap V3, and tailored for the Sonic blockchainâs high-performance environment. This model departs from the broad coverage of Legacy Liquidity by allowing providers to allocate tokens to specific price rangesâe.g., ETH-USDC between $2,000 and $2,500âinstead of the full spectrum (0 to infinity). This targeted approach maximizes capital efficiency, ensuring liquidity is only active where trading demand exists, reducing slippage for traders, and boosting fee returns for providers.
The mechanism works by letting liquidity providers define upper and lower price bounds for their positions. Within these ranges, the pool operates under a modified constant product formula (x y = k), but only for the specified segment. For example, if ETHâs price is $2,300, a providerâs $2,000-$2,500 range is fully utilized, earning 95% of swap fees (typically 0.3% per trade), while a $1,500-$1,900 range earns nothing until the price shifts. Positions are minted as non-fungible tokens (NFTs), tracked individually by the Ramses V3 accounting system, enabling precise management.
The system supports two liquidity frameworks:
The x(3,3) mechanism drives token emissions, replacing ve(3,3)âs long lockups with flexible staking and voting. Users stake xShadow (SHADOW at 1:1, 15-180 day vesting) or $x33 (liquid staking variant) to vote on pool gauges, directing emissions per epoch (weekly reset, Thursday 00:00 UTC). Rewards include:
Shadow Exchange operates via audited smart contracts, forked from Solidly and enhanced by Ramses V3 Core. Key functions include:
Sonicâs infrastructureâsub-second block times, high TPS, and low-cost transactionsâunderpins the architecture. FeeM returns 90% of gas fees to users or developers, enabling high-frequency trading and position updates without cost barriers. This supports Concentrated Liquidityâs rapid adjustments and Legacy Liquidityâs arbitrage efficiency, driving volume.
Built on Solidlyâs ve(3,3) and Ramsesâ V3 enhancements, Shadow Exchange balances flexibility (short-term staking) with efficiency (concentrated ranges). Audits ensure security, while Sonicâs speed amplifies performance, making it a scalable DeFi engine for 457+ pools.
Install a compatible wallet like MetaMask or Rabby. Configure it for the Sonic network using RPC details:
Network Name: Sonic
RPC URL: https://rpc.soniclabs.com
Chain ID: 64165
Symbol: S
Explorer: https://explorer.soniclabs.com
Fund your wallet with $S tokens by purchasing it on Gate.io, then withdraw to your wallet.
Visit the Shadow Exchange interface using [https://www.shadow.so](https://www.shadow.so)
or [https://www.shadowdex.fi](https://www.shadowdex.fi)
. Connect your wallet by clicking âConnect Wallet,â selecting MetaMask or Rabby, and approving the connection. Also, ensure the network is set to Sonic.
Navigate to the âSwapâ tab. Select the input token (e.g., $ETH) and output token (e.g., $USDC), enter the amount, and review slippage settings (default 0.5%). If prompted, approve the token, then confirm the swap. Sonicâs sub-second finality processes it instantly.
Go to the âPoolsâ tab. Choose a pair (e.g., $ETH-$USDC) and select Legacy or Concentrated Liquidity. For Legacy, input equal dollar values (e.g., $50 ETH, $50 USDC), approve, and deposit. For Concentrated, set a price range (e.g., $2,000-$2,500), deposit, and mint the position NFT.
Convert $SHADOW to xShadow (1:1) under the âStakeâ tab. Pick a vesting period (15-180 days), approve, and lock. Vote on pool gauges via x(3,3) to direct emissions, earning fees, and rebases. Alternatively, swap xShadow for $x33 for liquid staking, maintaining tradability.
Check positions in âMy Poolsâ (LP fees) or âStakingâ (xShadow rewards). Claim fees or emissions post-epoch (Thursday 00:00 UTC). For xShadow, exit post-180 days for full redemption or face a 50% penalty pre-180 days (after a 14-day grace).
$SHADOW, the utility token of Shadow Exchange has a maximum supply of 10 million tokens. Its initial distribution includes: Contributors (750,000), Presales (750,000), Liquidity Incentives (3,500,000), Airdrop (500,000), Team (1,500,000, vesting over 2 years), and Treasury (3,000,000). Emissions began at 50,000 $SHADOW weekly, decaying by 1% per week, incentivizing early participation.
$SHADOW serves multiple roles:
Emissions decay weekly by 1% from an initial 50,000 $SHADOW, balancing inflation and rewarding sustainability. Team tokens vest over 2 years, aligning long-term interests, while xShadowâs 15-180 day vesting (14-day penalty-free exit, 50% penalty pre-180 days) encourages commitment. The 10 million cap ensures scarcity as adoption grows, with current circulation reflecting early-stage deployment.
Shadow Exchange, launched in 2024 on the Sonic blockchain, offers a powerful yet accessible decentralized exchange for crypto beginners and intermediates. It blends high-speed trading with low costs through Sonicâs Fee Monetization. Its architecture delivers efficiency, flexibility, and rewards, while the $SHADOW tokenâs 10 million cap and decaying emissions ensure sustainable tokenomics. From simple swaps to advanced yield farming, Shadow Exchange provides tools for all levels, backed by audited contracts and Sonicâs robust infrastructure.
The Sonic blockchain is a Layer-1 EVM-compatible blockchain that stands out because of its speed and a unique feature called Fee Monetization (FeeM). Sonic processes over 400,000 transactions per second (TPS) with sub-second confirmation times, making it much faster than many other EVM blockchains. FeeM is a new economic mechanism where developers earn 90% of the fees from apps they build, as long as those apps increase activity on the network.
Shadow Exchange is a decentralized exchange (DEX) built natively on the Sonic blockchain. It uses an order-style concentrated liquidity approach, which focuses liquidity in specific price ranges to make trading more efficient. Shadow Exchange is designed to enhance usersâ trading experience by providing optimized liquidity management, reduced slippage, and an efficient trading environment.
Shadow Exchange is a decentralized exchange (DEX) built natively on the Sonic blockchain, launched in 2024 by a developer known as 24dollars. Itâs tailored for crypto beginners and intermediate users, offering a platform to swap tokens, provide liquidity, and earn rewards on the Sonic blockchain. Unlike typical exchanges, Shadow Exchange uses Sonicâs high-speed network to process trades in sub-seconds with low costs. Itâs similar to Uniswap v3/v4, focusing on concentrated liquidity, but optimized for Sonicâs high throughput and low costs, pooling liquidity in specific price ranges to reduce slippage for traders and boost provider returns.
x(3,3) is a core incentive mechanism powering Shadow Exchange on the Sonic blockchain, an evolution of the ve(3,3) model pioneered by Solidly. It allows users to stake tokens and vote on liquidity pools to direct token emissions, earning rewards proportional to their stake and voting power at the end of each epoch. Unlike ve(3,3), which often requires locking tokens for months or years to maximize rewards, x(3,3) removes mandatory long-term commitments, offering flexibility for short-term participation. This design suits active traders and liquidity providers who prefer adaptability over rigid lockups.
The process works through staking xShadow or $x33, the platformâs governance tokens. Users stake tokens and vote on liquidity pools to direct emissions, earning rewards per epoch without mandatory long-term locks. The more xShadow or $x33 staked and directed toward a pool, the higher its emission share, incentivizing strategic voting to boost returns. Rewards come from protocol fees and emission tokens, with the exact payout tied to the poolâs performance and total votes cast. This setup contrasts ve(3,3)âs focus on long-term holders by rewarding active engagement over passive locking.
xShadow, a non-transferable staking and governance token on Shadow Exchange, is the backbone of Shadow Exchangeâs reward and governance system. Itâs earned through SHADOW conversion or staking emissions, not purchasable on open markets, ensuring rewards go to active participants. It locks SHADOW for a user-selected vesting period of 15 to 180 days, enabling access to protocol fees, voting incentives, and rebase rewards. Users can cancel within 14 days for a full refund (1:1 SHADOW return). Exiting after 14 days but before 180 days incurs a 50% penalty, with the forfeited SHADOW redistributed to remaining stakers via PvP rebase.
Legacy Liquidity is Shadow Exchangeâs traditional liquidity framework, drawing from Uniswap v2âs design to support token swaps and liquidity provision on the Sonic blockchain. It operates through two pool types: volatile and stable. Volatile pairs match tokens by equal dollar valueâe.g., $50 of Token A with $50 of Token Bâsuited for assets with fluctuating prices like ETH or memecoins. Stable pairs, tailored for correlated assets like stablecoins (e.g., USDC-USDT), use a modified curve to minimize slippage and maintain price parity, which is ideal for low-volatility swaps.
These pools rely on the constant product formula (x y = k), where x and y are the quantities of each token, and k is a constant. Exchange rates and slippage adjust dynamically as trades alter the poolâs balanceâe.g., buying Token A reduces its supply, raising its price relative to Token B. Arbitrage bots monitor these shifts, trading against external market prices to rebalance pools and keep rates consistent, a process facilitated by Sonicâs sub-second finality and low fees ($0.001 average).
Concentrated Liquidity is the cornerstone of Shadow Exchangeâs trading and liquidity provision system, built on the Ramses V3 Core, an adaptation of Uniswap V3, and tailored for the Sonic blockchainâs high-performance environment. This model departs from the broad coverage of Legacy Liquidity by allowing providers to allocate tokens to specific price rangesâe.g., ETH-USDC between $2,000 and $2,500âinstead of the full spectrum (0 to infinity). This targeted approach maximizes capital efficiency, ensuring liquidity is only active where trading demand exists, reducing slippage for traders, and boosting fee returns for providers.
The mechanism works by letting liquidity providers define upper and lower price bounds for their positions. Within these ranges, the pool operates under a modified constant product formula (x y = k), but only for the specified segment. For example, if ETHâs price is $2,300, a providerâs $2,000-$2,500 range is fully utilized, earning 95% of swap fees (typically 0.3% per trade), while a $1,500-$1,900 range earns nothing until the price shifts. Positions are minted as non-fungible tokens (NFTs), tracked individually by the Ramses V3 accounting system, enabling precise management.
The system supports two liquidity frameworks:
The x(3,3) mechanism drives token emissions, replacing ve(3,3)âs long lockups with flexible staking and voting. Users stake xShadow (SHADOW at 1:1, 15-180 day vesting) or $x33 (liquid staking variant) to vote on pool gauges, directing emissions per epoch (weekly reset, Thursday 00:00 UTC). Rewards include:
Shadow Exchange operates via audited smart contracts, forked from Solidly and enhanced by Ramses V3 Core. Key functions include:
Sonicâs infrastructureâsub-second block times, high TPS, and low-cost transactionsâunderpins the architecture. FeeM returns 90% of gas fees to users or developers, enabling high-frequency trading and position updates without cost barriers. This supports Concentrated Liquidityâs rapid adjustments and Legacy Liquidityâs arbitrage efficiency, driving volume.
Built on Solidlyâs ve(3,3) and Ramsesâ V3 enhancements, Shadow Exchange balances flexibility (short-term staking) with efficiency (concentrated ranges). Audits ensure security, while Sonicâs speed amplifies performance, making it a scalable DeFi engine for 457+ pools.
Install a compatible wallet like MetaMask or Rabby. Configure it for the Sonic network using RPC details:
Network Name: Sonic
RPC URL: https://rpc.soniclabs.com
Chain ID: 64165
Symbol: S
Explorer: https://explorer.soniclabs.com
Fund your wallet with $S tokens by purchasing it on Gate.io, then withdraw to your wallet.
Visit the Shadow Exchange interface using [https://www.shadow.so](https://www.shadow.so)
or [https://www.shadowdex.fi](https://www.shadowdex.fi)
. Connect your wallet by clicking âConnect Wallet,â selecting MetaMask or Rabby, and approving the connection. Also, ensure the network is set to Sonic.
Navigate to the âSwapâ tab. Select the input token (e.g., $ETH) and output token (e.g., $USDC), enter the amount, and review slippage settings (default 0.5%). If prompted, approve the token, then confirm the swap. Sonicâs sub-second finality processes it instantly.
Go to the âPoolsâ tab. Choose a pair (e.g., $ETH-$USDC) and select Legacy or Concentrated Liquidity. For Legacy, input equal dollar values (e.g., $50 ETH, $50 USDC), approve, and deposit. For Concentrated, set a price range (e.g., $2,000-$2,500), deposit, and mint the position NFT.
Convert $SHADOW to xShadow (1:1) under the âStakeâ tab. Pick a vesting period (15-180 days), approve, and lock. Vote on pool gauges via x(3,3) to direct emissions, earning fees, and rebases. Alternatively, swap xShadow for $x33 for liquid staking, maintaining tradability.
Check positions in âMy Poolsâ (LP fees) or âStakingâ (xShadow rewards). Claim fees or emissions post-epoch (Thursday 00:00 UTC). For xShadow, exit post-180 days for full redemption or face a 50% penalty pre-180 days (after a 14-day grace).
$SHADOW, the utility token of Shadow Exchange has a maximum supply of 10 million tokens. Its initial distribution includes: Contributors (750,000), Presales (750,000), Liquidity Incentives (3,500,000), Airdrop (500,000), Team (1,500,000, vesting over 2 years), and Treasury (3,000,000). Emissions began at 50,000 $SHADOW weekly, decaying by 1% per week, incentivizing early participation.
$SHADOW serves multiple roles:
Emissions decay weekly by 1% from an initial 50,000 $SHADOW, balancing inflation and rewarding sustainability. Team tokens vest over 2 years, aligning long-term interests, while xShadowâs 15-180 day vesting (14-day penalty-free exit, 50% penalty pre-180 days) encourages commitment. The 10 million cap ensures scarcity as adoption grows, with current circulation reflecting early-stage deployment.
Shadow Exchange, launched in 2024 on the Sonic blockchain, offers a powerful yet accessible decentralized exchange for crypto beginners and intermediates. It blends high-speed trading with low costs through Sonicâs Fee Monetization. Its architecture delivers efficiency, flexibility, and rewards, while the $SHADOW tokenâs 10 million cap and decaying emissions ensure sustainable tokenomics. From simple swaps to advanced yield farming, Shadow Exchange provides tools for all levels, backed by audited contracts and Sonicâs robust infrastructure.