SUN is a protocol created to support the growth of TRON’s DeFi ecosystem.
In the DeFi ecosystem, numerous projects have many opportunities to establish themselves. One of these has ties to other existing DeFi projects on the public TRON chain via decentralized liquidity mining as it has a growing community and is open source. Also, new additions will be made in the future, strengthening the pursuit of longevity.
Do you know which protocol we are talking about? It’s none other than Sun.
background
SUN was created to support the growth of TRON’s DeFi ecosystem. Until now, SUN.io has gone through several iterations and adopted JustSwap. The updated SUN.io platform focuses on the development of TRON’s DeFi ecosystem, which is built around decentralized exchanges (DEX) and features such as token swaps, liquidity mining, stablecoin swaps and decentralized autonomous organizations (DAO) in the public chain of TRON integrated.
Since SUN is the native token of SUN.io, it plays a significant role in platform management, reward buyback and burning, reward delivery to liquidity providers, and other functions. SUN also supports TRON’s goal of providing fair benefits to all users.
By using a variety of transaction protocols, SUN.io tries to create an integrated DEX ecosystem with a high level of functionality, profitability and security. Participants can earn rewards from transaction fees paid to liquidity market makers, LP token mining rewards, and SUN token staking rewards, among others. Meanwhile, a closed ecosystem is created by the SUN’s burning mechanism and the voting rights of the holders.
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 into TRON’s public chain:
– SunSwap offers efficient and secure token swaps between any token at the best prices.
– Stablecoin Pool: Effective stablecoin swaps with little slippage and fees
– Boostable, user-driven liquidity mining – Governance mining
– Rewards for staked SUN tokens: payments for voting rights (veSUN)
Transaction fees will no longer account for the bulk of SUN platform revenue; Instead, profits from other products will be bought back, burned and redistributed along with additional research and development to preserve the value of the SUN token and continue to provide benefits to users.
Benefits for veSUN owners
Users can currently deploy SUN on the SUN platform in exchange for veSUN. Users who own veSUN get access to the following benefits:
Get rewards from transaction fees
veSUN holders receive TUSD in the form of 50% of the transaction fees of all stablecoin pools. In each round, developers create multiple snapshots of users’ entire veSUN inventories. Smart contracts are triggered after the round to calculate the weighted TUSD rewards and distribute them to users according to their veSUN holdings.
Increase mining of liquidity pools
Unlike traditional liquidity mining, SUN’s governance mining takes veSUN into account and adds a novel idea, virtual balance, to the calculation of user inputs. In addition, smart contracts are used to store the value of the veSUN, which only changes when users deposit or withdraw tokens or claim rewards.
Vote for the weighting of the liquidity pools
Users can use veSUN to vote for mining different liquidity pools. A snapshot of votes is taken each week to calculate pool weights for the following week. Users can cast their vote based on the percentage of veSUN they own, although veSUN’s value is constantly decreasing. To prevent users from changing their vote too frequently, they are only allowed to do so for 10 days after casting a vote in a mining pool.
market prospects
DeFi started to gain traction and has gradually replaced Bitcoin as the most widely used blockchain technology. It has grown into one of the largest applications in this industry and has seen rapid growth.
The overall trend of the Total Value Locked (TVL) directly correlates with the development of the DeFi market. The TVL of DeFi projects saw rapid expansion, peaking at $240 billion. More and more organizations are driving greater TVL growth by creating sophisticated and secure protocols. More and more organizations are driving greater TVL growth by creating sophisticated and secure protocols. DeFi is entering a new phase of growth as a result of increased investor adoption.
governance mechanism
The SUN token has no pre-mining tokens, tokens only for teams, cornerstone investments or private placements. Alternatively, the various features and mechanisms of the ecosystem ensure that the SUN token can be distributed sensibly and permanently.
combustion
The latest version of the SunSwap protocol allows for the buyback and burning of a certain number of rewards obtained from DEX transaction fees.
buyback method
A portion of the transaction fees (0.05% of each transaction) is reserved by smart contracts as LP tokens, which are then exchanged for SUN at a set exchange rate and stored at a specific address for burning.
firing method
By returning the purchased SUN tokens to TRON’s Blackhole address within a month every month, the tokens held at the above address will be burned.
SUN governance mining
The depth of the transaction pool in SunSwap’s market-making mechanism is primarily provided by Liquidity Providers (LPs). Users must inject liquidity into the stablecoin pool’s swap mechanism to keep swap prices stable. Therefore, LP token staking for mining on SunSwap and in the stablecoin pool is now supported by SUN platform governance mining. Users can vote to determine the weight of a mining pool in the meantime and stake SUN to receive veSUN as a boost. More users are actively encouraged by SUN platform to provide liquidity in various ways.
SUN Staking Rewards
Users can deploy 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 amount of veSUN users.
Underlying Technology
SunSwap AMM model
SunSwap uses the AMM (Automated Market Maker) model, which is the most popular transaction model in DeFi. The AMM calculates asset prices using a constant product mathematical formula, as opposed to the order book of a traditional exchange. This makes it possible to execute transactions automatically and ensure the liquidity of trading pairs.
create liquidity
The initial value of the two tokens is zero when a liquidity pool is first created. LPs must stake a certain amount of each of the two tokens to start the liquidity pool that enables transactions. The initial LP determines the initial price of liquidity and gets 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 will be fully replaced by StableSwap for stablecoin swap on SUN. Due to the growth and diversity of stablecoin market share, users now have a large and diverse demand for stablecoin exchanges. Users find that the special StableSwap model is the best option for stablecoin exchange.
Conclusion
The Decentralized Autonomous Organizations (DAO) program is being advanced on the SUN platform. The platform gives users the ability to choose the future direction in which all products are developed, with SUN serving as the sole 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 keep their support for the expansion of the ecosystem.
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