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FAQ

What is Shadow Exchange?

The revolutionary DEX where INFINITY earns bribes and LPs earn maximum rewards

What is Shadow Exchange?

Shadow Exchange is Sonic's premier DEX and the primary trading venue for INFINITY. It's where the Infinity community earns the highest rewards and where the treasury provides strategic bribes to liquidity providers.

Why Shadow Matters for INFINITY

Official INFINITY Pool

  • Primary $8/S trading pair with deepest liquidity
  • Concentrated liquidity for maximum capital efficiency
  • Direct bribe recipient from INFINITY treasury
  • Best pricing for larger $8 trades

Reward Integration

  • SHADOW token rewards for all liquidity providers
  • $8 bribes from the Infinity treasury to xSHADOW holders
  • Trading fees from all swaps in the pool
  • Compound earning opportunities across multiple tokens

Revolutionary x(3,3) Model

Beyond Traditional ve(3,3)

Shadow improves on Curve's ve(3,3) model:

Traditional ve(3,3) problems:

  • Long locks with no exit strategies
  • Rewards for idle holding vs. active participation
  • Inflexible staking periods
  • Unfair distribution favoring early adopters

Shadow's x(3,3) solutions:

  • Exit strategies that factor user behavior
  • Active participation rewards over passive holding
  • Flexible locking with multiple options
  • Equitable distribution based on true loyalty

How x(3,3) Works

  1. Provide liquidity in $8/S or other pools
  2. Lock LP tokens in Shadow gauges
  3. Earn SHADOW tokens as base rewards
  4. Convert to xSHADOW for governance participation
  5. Vote on gauges to direct more rewards to preferred pools
  6. Receive bribes proportional to your xSHADOW holdings

Pool Types Available

Best for active liquidity providers:

  • Uniswap V3-style concentrated liquidity
  • 10-100x capital efficiency vs. traditional AMM
  • Custom price ranges for maximum fee capture
  • Higher rewards due to capital concentration
  • Active management required for optimal returns

Volatile Pools (Legacy)

Best for passive liquidity providers:

  • Uniswap V2-style traditional AMM
  • 50/50 ratio across full price range
  • Set-and-forget liquidity provision
  • Lower capital efficiency but easier management
  • Stable rewards without range management

Shadow Exchange Performance

Network Ranking

  • #3 fee earner on Sonic network
  • 7.68% of total network fees generated
  • Consistently high volume across all pairs
  • Growing market share as Sonic expands

Technical Excellence

  • Sub-second execution matching Sonic's speed
  • Near-zero slippage with concentrated liquidity
  • Advanced routing for optimal trade execution
  • Battle-tested contracts with professional audits

INFINITY Bribe Strategy

Why Infinity Bribes Shadow

  • Concentrated liquidity maximizes the project's capital efficiency
  • x(3,3) model rewards active ecosystem participation
  • Proven performance as Sonic's #2 protocol
  • Aligned incentives between Shadow and INFINITY

How Bribes Work

  1. INFINITY treasury allocates $8 tokens for bribes
  2. xSHADOW holders receive proportional bribe distribution
  3. Voters for $8 gauge get maximum bribe allocation
  4. LP incentives maintain healthy $8/S liquidity

Maximizing Your Bribes

  • Provide $8/S liquidity on Shadow Exchange
  • Lock LP tokens in Shadow gauges for SHADOW rewards
  • Convert SHADOW → xSHADOW for governance participation
  • Vote for $8 gauge to maximize your bribe share
  • Hold longer locks for increased voting power

Getting Started on Shadow

Prerequisites

  • Sonic network added to your wallet
  • S tokens for gas fees (~$1-5 worth)
  • $8 and S tokens for liquidity provision
  • Understanding of impermanent loss risks

Step-by-Step Process

  1. Visit Shadow Exchange at app.shadow.so
  2. Connect your wallet (MetaMask, Rabby, etc.)
  3. Navigate to Pools section
  4. Find $8/S pair and choose pool type
  5. Add liquidity with equal USD values
  6. Lock LP tokens in gauges for rewards
  7. Participate in governance for maximum benefits

Earning Opportunities

Multiple Revenue Streams

  • Trading fees: 0.3% from all swaps
  • SHADOW rewards: Native token emissions
  • $8 bribes: Treasury-funded incentives
  • Governance power: Influence future reward allocation

Compound Strategies

  • Reinvest trading fees to grow your position
  • Compound SHADOW rewards for exponential growth
  • Strategic voting to maximize future bribes
  • Range management (CL pools) for optimal fee capture

Risk Management

Understanding Risks

  • Impermanent loss when token prices diverge
  • Smart contract risk despite professional audits
  • Active management required for CL positions
  • Governance participation needed for maximum rewards

Mitigation Strategies

  • Start with small positions to learn the system
  • Use volatile pairs for reduced impermanent loss
  • Monitor positions regularly for range adjustments
  • Diversify across multiple pools and strategies

Community and Support

Official Resources

  • Shadow documentation: docs.shadow.so
  • Discord community: Active support and discussion
  • Governance forum: Participate in protocol decisions
  • Analytics dashboards: Track performance and rewards

INFINITY Integration

  • Telegram discussions: $8 LP strategy chat
  • Community coordination: Maximize collective bribes
  • Shared knowledge: Best practices and optimization
  • Aligned incentives: Success benefits everyone

Shadow Exchange isn't just where the community trades $8—it's where Infinity holders earn the highest rewards while supporting the project's liquidity. Every LP helps create better pricing, every vote directs more bribes to the ecosystem, and every participant strengthens the collective position.

Ready to start earning? Visit Shadow Exchange and join the most rewarding DEX experience on Sonic.


Shadow Exchange: Where INFINITY holders become INFINITY earners.