Angles Protocol

Angles is a liquid staking protocol on the Sonic Network that issues anS, a liquid staking token (LST) for S tokens. It provides staking yield through validator delegation while maintaining a tight peg via 1:1 redemption mechanisms. The protocol features elastic supply rebasing for automatic yield distribution and includes DeFi integration through Angles Liquid for additional yield opportunities.

Angles Protocol generates yield through two primary mechanisms:

• Native staking yields from Sonic Network validators
• DeFi liquidity provisioning yields through Angles Liquid

Native staking yields

S tokens are staked with top validators using distributed validator technology (DVT, a system that spreads staking across multiple validators). This generates validator staking rewards, which are distributed to holders of the liquid staking token, anS.

The distribution happens via an elastic supply rebasing system: your anS token balances automatically increase in real-time as yield is earned—similar to interest accruing in a bank account. This rebasing only goes upward; your balance never decreases from this process.

DeFi liquidity provisioning yields

Users can wrap their anS tokens into wrapped anS (wanS) and deposit them into vault contracts. These vaults deploy funds to various DeFi protocols on Sonic, including Silo, Spectra, and Beets, to earn additional yield from liquidity provisioning.

The vault architecture allows for profitable portfolio rebalances. When opportunities arise, arbitrageurs execute these rebalances, capturing extra profit for the vault.

Fees and system design

The protocol charges a 10% annualized performance fee based on the total value locked in the vaults (the liquid staking component). This fee is computed on every vault interaction.

The yield generation is designed with permissionless management—anyone can participate. It also maintains a stable 1:1 peg between anS and S tokens through instant redemption mechanisms and permissionless S token withdrawals.