The creators of the Sonic blockchain are working on implementing their own algorithmic stablecoin, according to Sonic Labs co-founder Andre Cronje.

POC looks good. Yielding > 200% APR @ 10m tvl, around 23.5% APR @ 100m, steady at around 4.9% at 1bn+.

Will scale up and get team for a full release. https://t.co/JtMqzAkU7g pic.twitter.com/Z4j2aPzefB
— Andre Cronje (@AndreCronjeTech) March 22, 2025

Cronje stated that Sonic aims to scale the system and prepare for a full-fledged release, though he did not specify a timeline.

Earlier, he mentioned that his team had “figured out” the technology behind algorithmic stablecoins, but full-scale implementation remains uncertain.

“The last cycle gave me such severe PTSD that I’m not sure whether we should deploy it,” Cronje explained.

His hesitation likely stems from the 2022 collapse of the UST algorithmic stablecoin and the Terra ecosystem.

Later, he hinted that Sonic had ultimately decided to proceed with the launch.

“You only live once,” he wrote.

While some users reacted with optimism, others expressed concerns.

“Don’t do it. Algorithmic stablecoin is an oxymoron. If it’s stable, it doesn’t need an algorithm. If it’s tied to an algorithm, there’s always a scenario where it can lose its peg, making it unstable. Plus, the peg is always lost when you need it most—during panic and bank runs,” one commenter warned.

Earlier in March, U.S. President Donald Trump urged Congress to pass a bill regulating stablecoins.