SUN is a protocol created to support the growth of TRON’s DeFi ecosystem.
In the DeFi ecosystem, numerous projects have many ways of establishing themselves. One of them, via decentralized liquidity mining, has ties with other existing DeFi projects on the TRON public chain due to its expanding community and by virtue of being open source. Besides that, new additions will be made in the future, strengthening its quest for longevity.
Do you know which protocol we’re talking about? It’s none other than Sun.
Table of Contents
SUN was created to support the growth of TRON’s DeFi ecosystem. Up until now, SUN.io has gone through several iterations and acquired JustSwap. The updated SUN.io platform focuses on developing TRON’s DeFi ecosystem, which is built around decentralized exchanges (DEX) and integrates features like token swaps, liquidity mining, stablecoin swaps, and decentralized autonomous organizations (DAO) on the TRON public chain.
Since SUN is SUN.io’s native token, it plays a significant part in platform governance, buying back and burning rewards, providing rewards to liquidity providers, and other features. SUN also supports TRON’s goal of providing all users with fair advantages.
By utilizing a variety of transaction protocols, SUN.io seeks to create an integrated DEX ecosystem with a high level of functionality, profitability, and security. Participants can receive rewards from transaction fees paid to liquidity market makers, LP Token mining rewards, and SUN Token stake rewards, among other incentives. All the while, a closed-loop ecosystem is created by the SUN’s burning mechanism and the holders’ voting privileges.
What is SUN?
Users can access a variety of one-stop services from SUN.io, the first platform to integrate on-chain token swaps, liquidity mining, stablecoin swaps, and DAO on the TRON public chain:
– SunSwap offers efficient and secure token swaps between any tokens at the best prices.
– Stablecoin pool: Effective stablecoin swaps with little slippage and fees
– Boostable user-governed liquidity mining—Governance mining
– Rewards for staked SUN tokens: Payments for voting privileges (veSUN)
Transaction fees will no longer make up the majority of the SUN platform’s revenue; instead, profits from other products will be bought back, burned, and redistributed along with additional R&D in order to preserve the SUN token’s value and continue to provide users with benefits.
Benefits for veSUN Holders
Users can currently stake SUN on the SUN platform in exchange for veSUN. Users who own veSUN gain access to the following advantages:
Get Rewards from Transaction Fees
Holders of veSUN receive TUSD in the form of 50% of all stablecoin pools’ transaction fees. Within each round, the developers take multiple snapshots of the users’ total veSUN holdings. Smart contracts will be triggered after the round to calculate the weighted TUSD rewards and distribute them to users according to their veSUN holdings.
Boost Liquidity Pool Mining
In contrast to conventional liquidity mining, governance mining of SUN considers veSUN and adds a novel idea, virtual balance, to the computation of users’ input. Additionally, smart contracts are used to store the value of the veSUN, which is only altered when users deposit or withdraw tokens or claim rewards.
Vote for the Weights of Liquidity Pools
Users can utilize veSUN to cast their votes for mining various liquidity pools. Each week, a snapshot of the votes will be taken in order to calculate the weights of the pools for the following week. Users can cast their votes based on the percentage of veSUN they own, despite the fact that veSUN’s value is constantly declining. In order to prevent users from changing their votes too frequently, they are only allowed to do so 10 days after casting a vote in a mining pool.
DeFi started to gain traction and has gradually replaced Bitcoin as the most widely used blockchain technology. It has developed into one of the largest applications in this industry and quickly experienced strong growth.
The overall trend of the total value locked (TVL) is directly correlated with the development of the DeFi market. The TVL of DeFi projects experienced rapid expansion, peaking at $240 billion. Through the creation of sophisticated and secure protocols, an increasing number of organizations are encouraging greater TVL growth. Through the creation of sophisticated and secure protocols, an increasing number of organizations are encouraging greater TVL growth. DeFi is starting a new phase of growth as a result of increased investor adoption.
The SUN token does not have pre-mine, teams-only tokens, cornerstone investments, or private placements. Alternatively, the ecosystem’s various features and mechanisms ensure that the SUN token can be distributed in a reasonable and long-lasting manner.
The most recent version of SunSwap’s protocol allows for the buyback and burning of a specific number of rewards obtained from DEX transaction fees.
A portion of the transaction fees (0.05% of each transaction) is reserved as LP Tokens through smart contracts, which are then exchanged for SUN at a predetermined exchange rate and stored in a designated address to be burned.
By sending the SUN tokens purchased back within a month to TRON’s blackhole address each month, the tokens kept in the aforementioned address will be burned.
SUN Governance Mining
The depth of the transaction pool in SunSwap’s market maker mechanism is primarily provided by liquidity providers (LPs). Users must contribute liquidity to the stablecoin pool’s swap mechanism in order to keep swap prices stable. Therefore, LP Token staking for mining on SunSwap and in the stablecoin pool is now supported by the governance mining of the SUN platform. Users can vote to determine a mining pool’s weight in the interim and stake SUN to receive veSUN as a boost. More users are actively encouraged by the SUN platform to provide liquidity in a number of ways.
SUN Staking Rewards
Users can stake SUN on the SUN platform to get veSUN. The platform distributes 50% of the transaction fees generated in the stablecoin pool to veSUN holders based on the quantity of veSUN users hold.
SunSwap AMM Model
SunSwap employs the AMM (Automated Market Maker) model, the most well-liked transaction model in DeFi. The AMM calculates asset prices using a constant-product mathematical formula, as opposed to the order book of a conventional exchange. This makes it possible to execute transactions automatically and safeguard the liquidity of trading pairs.
The initial value of the two tokens is zero when a liquidity pool is first created. LPs must stake a specific quantity of each of the two tokens to start the liquidity pool, which enables transactions. The initial LP determines the liquidity’s initial price and receives its LPS. The relative amount of each token in the pool versus the other determines the prices of the two tokens.
SUN StableSwap Model
SunSwap is completely replaced by StableSwap for the stablecoin swap on SUN. Users now have a huge and diverse demand for stablecoin exchanges due to the stablecoin market share growth and variety. Users find that the special StableSwap model is the best option for exchanging stablecoins.
The decentralized autonomous organization (DAO) program will advance on the SUN platform. The platform gives users the power to choose the future directions in which all products will be developed, with SUN serving as the only governance token. As the ecosystem develops, the SUN platform will add new features, and there will be more uses for the SUN token, which will encourage users to sustain their support of the ecosystem’s expansion.