What is SonarWatch?

The SonarWatch project is a crypto-tracking dashboard built on Solana’s blockchain to help users track all their digital assets on multiple networks. It uses the wallet’s public address or the user’s domain name to show the native tokens staked or NFTs within the wallet.

Although the project was built on Solana, it has achieved multichain capacities, allowing users to track valuable metrics on their assets on multiple blockchains. Some such vital metrics are token price history, insights to supply, annual percentage rates (APR), total values locked (TVL), and substantial risks to assist experienced DeFi managers.

The project is built with API lexicons and endpoints, which, combined with its multichain capacity, allows it to display assets on the main dashboard to improve asset management.

History and Team of SonarWatch

Source: SonarWatch Medium

The first tweet about the SonarWatch project was done by its creator, Oliver, on the 18th of April 2021. Oliver is a developer and engineer on Ethereum who was dissatisfied with the fees on the blockchain. In response, he moved to Solana.

As a developer, he experienced difficulties keeping track of projects and assets, so the SonarWatch application was designed and launched for users with similar difficulties. After the launch, Guillaume, a finance expert, and Victor, the head of marketing, joined the management team to continue developing the project.

By October 2021, the SonarWatch project concluded its fundraiser and introduced its SONAR token, which allowed users to access the pro features on the platform. It also launched SonarWatch V2 beta, which came with reduced fees and more features in development. By the end of 2021, the project supported 15 protocols and tracked assets on more than 500 farming pools.

Core Components

API Endpoint

The SonarWatch API is designed to make on-chain data easily accessible for every user. The API allows users to seamlessly interact with the assets’ data on blockchains and the corresponding DeFi (decentralized finance) activities.

This is done by calling specific requests within the larger API to retrieve a particular element. Elements are a group of data that contain specific details such as the identity of the blockchain or platform, the data type, the value of the assets, and other labels like name and proxy information.

The API identifies multiple data structures within the element, such as if the asset is a single generic asset or contains numerous assets. It is also capable of distinguishing between assets that are borrowed or lent to a liquidity pool. SonarWatch’s API can correctly display various on-chain assets and holdings using these elements and types.

The SonarWatch API comprises three broad types of endpoints. The first is the Portfolio endpoint, which recovers all the assets, tokens, and NFTs owned by a particular address for display on the main dashboard. The second is the token endpoint for retrieving information about tokens, and the last is the name endpoint for domain names. This endpoint gets information about domain names linked to specific addresses.

Multichain

The SonarWatch multichain support tracks DeFi holdings through the four address systems of EVM (Ethereum Virtual Machine), Move, Solana, and Bitcoin.

Addresses are unique identifiers on a blockchain, akin to the bank accounts of traditional financial institutions. The address system is a collection of technical similarities within the blockchain that allows it to allocate and identify wallets, tokens contained within, and transactions.

The EVM-compatible networks supported by SonarWatch are Ethereum, Avalanche, Polygon, and Binance Smart Chain. The Move networks consist of Sui and Aptos.

The multichain feature allows users to monitor relevant DeFi transactions and investments across various ecosystems in a single dashboard.

Features of the SonarWatch Project: Dashboard and API

Dashboard

Source: SonarWatch Website

SonarWatch provides a simple, user-friendly interface that gives users a centralized view of the assets and investments of addresses. Its key functions are portfolio tracking, asset visualization, and chain transaction history.

The dashboard has an address book feature that allows users to store their addresses and domain names. This address book has two sections. The first is labeled wallets, where users save addresses and domain names. The second is labeled bundles, where users save groups of similar addresses to display the assets within them at once.

When interacting with the dashboard, users can choose their default chain to display, filter between chains, load bundles that span multiple chains, copy and save token addresses, and share a bundle or address with others from the address book page.

API

Source: SonarWatch Website

The SonarWatch API is a series of Fetch and Get commands in the larger API framework that retrieves information on tokens, addresses, and blockchains. It returns this information as JSON files, with the schema to assist in understanding the data.

The APIs make it easy for developers to integrate with their applications to retrieve DeFi data for their users. The API is divided into fetch commands (/v1/portfolio/fetch), which retrieve information about portfolios, tokens, and network identities associated with specific addresses. The command uses cached data for faster data retrieval.

The second is get commands (/v1/portfolio/get), which are used to identify the address system, platform identity, blockchain, and exchange rates of tokens. These data are then retrieved and displayed for user interpretation.

The SonarWatch API repository includes plugins such as Job(s) and Fetcher(s) that make it easier to integrate into DeFi applications.

What is the SONAR Token?

Source: SonarWatch’s Medium Page

The SONAR token is the native token of the SonarWatch project. The token was created to add value to the project since it can access added features like SonarWatch PRO. The pro feature provides utilities such as multi-wallet support, history charts, and the ability to export the dashboard as a CSV file.

The token was built on the Solana ecosystem, allowing holders to enjoy reduced fees compared to other users on the platform. It aims to improve the efficiency of holders’ transactions.

The token has a total supply of 100 million tokens. The token distribution allocates 40% to mining reserves, 20% to the project’s investors, 20% reserved for the team, and 10% for treasury. During the IDO period, 2% is allocated to airdrops, 3% for marketing, and 5% for IDO/IEO activities.

SONAR’s circulating supply will continue to fluctuate over time. The quantity of tokens in circulation will be determined by mining reserves, which will be diluted as time goes by. Hence, its circulating supply will increase over the years. The image below shows an expected projection of SONAR’s circulating supply in 24 months.

Source: SonarWatch’s Medium Page

Is SONAR a Good Investment?

With the emergence of multiple blockchains and projects, the ability to keep tabs on all tokens, addresses, and investments will become more and more relevant over time. This places SonarWatch in a prime position in the developing crypto space.

The SONAR token is the center of such development, allowing holders to enjoy pro benefits within the project. With the launch of future projects like the SonarWatch DEX, holders and early investors would enjoy reduced fees while swapping and transacting.

Risk Analysis

Advantages

The SonarWatch project tracks assets across various blockchains, providing a holistic view of the user’s assets and investments. This removes the need to juggle different applications and interact with multiple interfaces.

Its user-friendly designs and easy-to-integrate API plugins provide a simple-to-use source of DeFi data. The pro features add potential benefits to the project users, and the reduced fees allow users to save funds and conduct more transactions.

Finally, the project caters to a growing need for better asset management across chains, allowing asset managers to track investments more efficiently.

Disadvantages

A disadvantage is the limited features available in the free version. Some users may find the need to purchase tokens unappealing because they want to access basic features like multi-wallet support and exportable data.

The project also relies heavily on its native token, giving non-holders of SONAR zero reason to interact with the platform. This can reduce the engagement needed for the project’s growth and adoption.

Challenges

A major challenge is the competition within the portfolio dashboard space, with projects like Nansen dominating the space. This makes it difficult for SonarWatch to compete against other multichain trackers.

Another challenge is the reliance on APIs. APIs and wallets are potential targets for hackers, which require a complex, robust security system to manage.

The final challenge is the volatility and uncertainty within the space. The crypto space is constantly subject to price volatility, and the uncertainty of future regulations discourages onboarding efforts.

Competitive Analysis

The Nansen platform is a multichain crypto portfolio tracker similar to SonarWatch. The project is focused on empowering DeFi users and institutions with comprehensive on-chain data analysis. It lets users conduct deep dives into wallets, transactions, and smart contracts.

SonarWatch, on the other hand, prioritizes user-friendliness by providing an easy interface for beginners and veterans. So, it focuses on basic asset tracking across multiple chains for daily usage.

Due to Nansen’s in-depth analysis capacity, it requires a steep learning arc and a tiered subscription model. This makes it less accessible to new participants in the space than SonarWatch’s freemium approach of offering free basic features with pro features unlocked through the SONAR token.

How Can You Own SONAR?

Users can follow a simple process to own SONAR tokens and become a part of the SonarWatch ecosystem.

Setup a Wallet

One way to own SONAR tokens is to purchase them through an exchange. To do so, the user must create a Gate.io account, complete the KYC process, and add funds to the account to buy the token.

Utilize the SONAR Tokens

Once users have acquired SONAR tokens, they can explore the SonarWatch ecosystem by subscribing to the pro features, track addresses, and display assets and investments.

Take action on SONAR

Users can trade the SONAR token here.