Sun.io: Sunswap, Integrated stablecoin swap, Staking, Mining, veSUN, etc.- Steemit Crypto Academy- S5W1- Homework Post for @sapwood

in hive-108451 •  2 months ago  (edited)

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(1) Discuss the various features of Sun.io, a comprehensive DeFi facility of Tron family?

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The SUN.io is a platform that is based on the TRON ecosystem which makes it possible for functions like stablecoin swapping, mining of tokens and self-governance to be undertaken. After a token redenomination was undertaken on the platform, a new SUN token was developed with a multifunctional governance feature. This is quite similar to the Curve DAO CRV token and the Ellipsis platform EPS token.

This makes it possible for token holders to possess various important rights and benefits. Some of these rights and benefits include the ability to vote and participate in the governance system of the community. Equally, there are other opportunities for earning passive rewards through staking and value capturing ventures.

Some of the interesting features of the SUN.io platform include:-

SunSwap

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This is one of the important features on the platform. With this particular feature you can quickly exchange your various tokens from one to another. Some of the tokens that can easily be exchanged include TRX, USDC, Sun, NFT, BTC, WBTT, JST, WIN, USDT, USDJ and HT.

Usually, you simply have to input the base token and the amount of it you wish to exchange. Then you would select the token you would want it to be exchanged to. An equivalent amount of the expected token will be calculated based on the best exchange rate and the swap will be affected.

Stake

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The staking feature is one of the very important features of the platform also. With the staking function you would usually have to lock your SUN tokens in order to receive veSUN. Holding the veSUN token helps in speeding up the mining process on the platform. This comes with an annual profit yield (APY) that can be as high as 9.57%.

You can also contribute to staking by adding to the liquidity pools. Some of these pools included the 3pool LP, USDC LP and the SUN-TRX LP. For instance, the SUN-TRX LP has the total of up to $55,519,819 locked up in its stake and comes with an APY which lies between 16% to 41%.

Governance

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The governance feature makes it possible for users to participate in the decision-making process of important functions on the platform. Some of these important decisions as displayed on the site include voting to decide on what the weight of the liquidity pools are going to be. Participating in this process requires staking of SUN token.

Airdrop

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The platform is in good spirit with Curve Finance. To this effect it makes it possible for veCRV token holders to benefit from an AirDrop that takes place every 52 weeks in which the users are rewarded according to their veCRV token stakes when the airdrop takes place.

There is usually a process the holders would have to undertake in order to qualify for this regular airdrop.

Century Mining

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The TRON Century Mining of the TRON Foundation is also available on this platform. To participate in this protocol you simply have to login to the platform and choose the liquidity mining pools you wish to participate in. Then, you would have to click and supply the amount of tokens you wish. Once you sign this will be qualified to earn additional rewards for this mining venture.

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(2) Visit Sunswap and scan the different LP pools?

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To view the liquidity pools of the system I visited the site at https://sun.io. Once on the site:-

  • I clicked on sunswap
  • I clicked on scan located to the left hand side of the page
  • This reveals the different LP tokens and also shows the total liquidity and volume in the last 24 hours

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How many different LP tokens are available in Sunswap?

Currently, there are ten (10) LP tokens available on the v1.0 version of the platform. These tokens are summarised in the table below:-

NameLiquidityVolume (24hrs)Volume (7d)Fees (24hrs)
OSK-TRX$458,769,409.4314$8,127,256.5232$52,928,021.6934$24,381.7695
USDT-TRX$215,495,257.8013$21,620,231.2487$237,483,108.9364$64,860.6937
JST-TRX$154,783,245.2174$648,026.011$11,418,590.683$1,944.078
WBTT-TRX$152,345,467.7072$1,470,850.5193$22,434,135.6137$4,412.5515
BTC-TRX$150,980,834.0449$3,050,275.7486$50,660,930.8472$9,150.8272
USDJ-TRX$121,276,036.6419$5,555,661.5381$60,367,341.6993$16,666.9846
WIN-TRX$61,473,063.6892$13,005,208.1072$125,181,163.7066$39,015.6243
NFT-TRX$60,499,375.9789$7,732,908.6088$71,057,180.2761$23,198.7258
SUN-TRX$60,404,258.9394$1,380,237.4611$31,736,735.6981$4,140.7123
TUSD-TRX$58,229,879.9308$3,219,192.1738$35,201,323.7932$9,657.5765

Based on the available data in Sun scan, how much fee did it generate in the last 24 hrs?

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From the image above the SUN-TRX token has generated a fee of $4,141.1015 in the last 24 hours. Equally, there are fees generated by the other LP tokens in the last 24 hours.

What percentage of that fee is being utilized to buy back and burn SUN?

1/6 th of this total fees is used to buy back and burn SUN

So, (1/6) X $4,141.1015 = $690.18358

But, % = (690.18358/4141.1015) X 100
= 0.166666665861727 X 100

So, about $690.18358 which represents approximately 16.7% of the total fees is used to buy back and burn SUN.

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(3) Stake SUN to obtain veSUN. Demonstrate the entire process with a real transaction?(Screenshot required)? Include the resource consumption statement, take the help of Block Explorer?

In this section I am going to be making use of the TronLink web extension wallet to stake SUN to obtain veSUN.

To do this, I took the steps below:-

  • I visited https://sun.io
  • On the site I clicked connect to wallet and connected the TronLink web extension wallet
  • After that I clicked on stake
  • I input the values and include 10 SUN to be locked for a period of four years and clicked deposit
  • Next, I had to sign the contract with my wallet
    Screenshots of the resources consumed are shared and it can be verified on the Sun scan block explorer

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(4) What is veSUN?

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The Vote Escrowed SUN(veSUN) token of the SunSwap platform is just like the JTokens of the JustLend protocol. It acts as a kind of receipt which is given to a user who has locked up SUN tokens for a minimum period of at least 6 months in the system. The veSUN tokens can be redeemed back in which case they are swapped back to the underlying SUN token at the expiration of the locking period.

The veSUN token acts as a gateway and gives its holders the opportunity of participating in the Sun.io governance mining. By holding the token a user has the very vital voting right in the SUN mining governance. Usually, the voting right lasts for as long as the assets are locked up as veSUN tokens.

Equally, users are able to boost the speed of their mining rewards by as much as 2.5X when they hold veSUN tokens. Again, 50% of all fees accrued from the stable coin swap are shared among the holders of veSUN tokens. Also, the community of veSUN holders are responsible for voting and deciding on what the weight of the liquidity pools would be.

Normally, the weights of the liquidity pools would be adjusted once the voting snapchat has been taken and this happens at 8:00 (SGT) every Thursday.

What is the 3-in-1 benefit of holding veSUN tokens?

The 3-in-1 benefits of holding the veSUN tokens are usually summarised as follows:-

  • Ability to earn from the 50% of all the stablecoin swap pool fees in the form of TUSD

  • The ability to boost the speed of mining by up to as much as 2.5X

  • The ability to hold voting rights which is instrumental in deciding the weight of the liquidity pools

It is important to note that staking your SUN tokens to obtain veSUN for the least period of time which is 6 months means that you would only reap the benefits of the lower threshold staking which is the smallest. On the other hand, those who choose to stake for the maximum period of four years reap the maximum rewards that come from the 3-in-1 benefits.

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(5) What is stablecoin swap facility in Sun.io?

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The stablecoin swap facility in the sun.ie platform is a feature which makes it possible for users to be able to exchange their tokens between two different stablecoin, that is, from one stablecoin to another usually you would have to choose the input and then the equivalent output. Next, you would have to decide on the quantity and clicking the sell button confirms the swap function.

The minimum to be staked is 0.01 USD. This is an enormous advantage because it greatly reduces the barrier to entry and makes the world of DeFi affordable to the majority of the TRON ecosystem users.

How many different stablecoins are supported in the SUN platform?

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From the image above I clicked on the USDT as if I was to select a stablecoin for swapping. This is in order to reveal the other available stablecoin swap options. Obviously, there are a total of 4 stablecoins between which the stablecoin swap can be undertaken on the Sun.io platform.

What is its use in the context of staking & mining?

Staking with stablecoins makes it possible for users to be able to minimise their risk as a result of volatility in the cryptocurrency market. This will greatly enhance the returns they receive by ensuring that they actually earn higher on their staking and mining ventures.

This is able to offer its users more profitable income than other proof of stake coins because such other PoS coins could be volatile and lose their value over time. Stablecoins on the other hand remain mostly stable being pegged in a ratio of 1:1 to the US dollar most of the time and especially in this case. So, it minimises sharp exposure to the risk of depreciation when staking and participating in mining pools.

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CONCLUSION

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The Sun.io platform is a very strategic innovation on the TRON ecosystem and has integrated functions like stablecoin swapping and other important beneficial functions like mining of tokens as well as earning by staking to obtain voting rights. Some of the other noteworthy functions on the platform include the SunSwap feature, the staking feature, airdrops for vCRV holders and century mining.

Furthermore, there are liquidity pools on the Sun.io protocol that users can decide to participate in to earn higher rewards and passive income. The veSUN token in its own is very important for gaining the voting rights for governance on the system. The stablecoin swapping function ensures that users minimise their risk due to volatility and earn higher rewards while undertaking staking functions on the platform.

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