Yield in ODX: Earning While Bridging
Unlocking Yield with ODX
ODX allows users to earn passive yield while bridging assets to Sonic. Depositors continue to earn rewards from their native assets while xAssets unlock liquidity within Sonic’s DeFi ecosystem.
Why Traditional Bridging Sacrifices Yield
Most cross-chain bridges require users to sacrifice native staking or yield rewards when moving assets to another chain. With ODX, users get the best of both worlds:
- Yield from the native chain (staking, lending, or other rewards)
- Utility of xAssets on Sonic (trading, borrowing, yield farming)
How Yield is Optimized in ODX
ODX maximizes yield generation through three core mechanisms:
1. Native Yield Accrual
- Assets deposited into ODX vaults continue to earn staking or DeFi rewards from their original blockchain.
- This ensures that users never lose their staking APY, even when bridging to Sonic.
2. Yield from Redemption Fees
- Depositors earn a portion of redemption fees whenever other users swap xAssets back into native assets.
- The longer assets stay locked in ODX, the more yield depositors accumulate.
3. Dual Utility: Staking & DeFi
- xAssets can be used across lending, trading, liquidity pools, and vault strategies on Sonic.
- This enables composability, allowing users to stack multiple yield streams.