Steemit Crypto Academy Season 5 [Advanced Course] Week 1 - Sun.io: Sunswap, Integrated stablecoin swap, Staking, Mining, veSUN, etc.

in hive-108451 •  2 months ago  (edited)

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DeFi is a strong & enduring force in the crypto segment. It does solve the major problem interface of traditional finance. "Banking the unbanked" is now a reality with DeFi.

The intermediaries are completely replaced by Smart-contract in DeFi. The utilitarian value of crypto in DeFi combined with stable coin caused people to rally en masse around DeFi in 2020. The expansion of financial and business use-case together with ever-rising total locked value in DeFi is a testimony to that.

The DEX once plagued with fragmented liquidity issues for a long time got solved with the introduction of the AMM mechanism.

DeFi has been catering to the use-cases of Lending, Borrowing, Supplying assets to the Liquidity pool & earning APY, exchange, etc.

Today we will discuss Sun.io as a comprehensive DeFi niche in the Tron ecosystem with a sustainable economy and decentralized Governance, Liquidity Pool, integrated stablecoin swap, stake, and mining.

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AMM-DEX, Justswap is now Sunswap

The SUN.IO recently acquired Justswap, the new official domain name of Justswap with this acquisition is now Sunswap.com. The latest version of Sunswap is Sunswap V1.5.

With all other conditions remaining the same, a portion of the transaction fee is now being used to buy back & burn SUN for sustainable economy and governance of SUN.

The transaction fee in AMM-based Sunswap is 0.3%. Of this 0.3% fee, 5/6 of it is distributed among the liquidity providers and the remaining 1/6 fee is used to buy back and burn SUN.

This economic model will continue to play a vital role in the supply/demand dynamics of SUN and its platform.

Automated Market Maker Decentralized Exchange(AMM-DEX) proliferates a new era of decentralized finance mitigating the fragmented liquidity issues of traditional DEX by introducing a constant product market-making mechanism(xy=k), as a result, Liquidity Pool(LP) is created in which x and y represent the two sides of the pool.

The product of x and y at any given time is a constant.

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So the equilibrium condition is XY=K.

If XY is not equal to K, the price of the asset will adjust itself to bring it to the equilibrium condition-- XY=K. That adjustment of the asset is known as the exchange rate. This is the underlying principle of AMM-based DEX.

Justswap(now Sunswap) relies on this principle to create a liquidity pool for each pair where the users are free to contribute to the pool and based on their contribution ratio w.r.t the total pool size, they earn their share.

When you contribute to a pool you have to contribute equivalent value to both sides (x & y).

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AMM-DEX Sunswap creates an opportunity for the investors to pool their tokens and earn exchange fees from each trade. The exchange fee is 0.3%. In a decentralized exchange like Sunswap, the liquidity providers earn 5/6th of the transaction fees. At any given time, the fund is in absolute control of the owner.

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Sun Scan

Go to Sunswap.com. On the left-hand side, you can notice a number of options-- Swap, LP Pools, Scan, SUN Swap, Burn SUN, WTRX, WBTT, etc. Click on Scan to scan the different LP pairs, their 7D and 24Hr trading volumes, fees generated, etc. Please note that V1.5 is the latest version.

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From this interface, you can directly trade a pair and add liquidity. You can also track all the transactions in Sunswap from this interface.

In a liquidity pool, when you contribute to both sides of the pool, you are issued LP tokens and share 5/6th of the trading fee in proportion to your liquidity size wrt total pool size.

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Example,

SUN-TRX Pair

LiquidityVolume (24hrs)Volume (7d)Fees (24hrs)
$30,838.89$19,152.85$51,286.36$57.46

In the last 24 Hrs, SUN-TRX Pair has generated fees of $57.4585. 5/6th of this fee is distributed among the liquidity providers, remaining 1/6th is used to buy back and burn SUN.

So (1/6)x57.4585= $9.5764 will be used to buy back and burn SUN.

Click on the vertical tab Burn SUN, located on the left of the Sunswap interface to see the entire burn history of SUN through the buyback and Burn mechanism.

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LP Pools

Click on the vertical tab LP Pools, located on the left of the Sunswap interface. It will redirect you to Sunswap mining where you can find the list of LP tokens, if you have contributed liquidity to any of the LP tokens pairs, you can further stake your LP token here and start mining TRX and other Tron based coins. The mining rewards in LP stake mining vary from one pair to the other.

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In Sunswap, every time an exchange happens, the trader pays 0.3% fee, 5/6th of the fee is distributed proportionally among the LP providers. The remaining 1/6th is utilized for buy-back and burn SUN.

So when you supply coins(both sides) to a Liquidity Pool, you are entitled to a Liquidity provider fee, in proportion to your liquidity contribution.

But it does not stop here. You can further galvanize your position as a Liquidity Provider and earn extra rewards on top of the Liquidity Provider Fee should you stake your LP token in Sunswap Mining.

For example, if you are a liquidity provider in the NFT-TRX LP Pool of Sunswap, you can further stake your NFT-TRX LP tokens in Sunswap mining to earn an APY of 36.91%, with TRX and NFT mining rewards.

So you earn 5/6th of the 0.3% Liquidity Provider fee in NFT-TRX Lp Pool+36.91% APY should you stake your NFT-TRX LP Token in Sunswap mining.

Please note that there may be more than 120 LP token pairs in Sunswap, but in Sunswap LP mining only a few popular LP tokens are available for Sunswap mining.

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Sun.io- Integrated stablecoin swap, Stake-mining & Self-Governance

Stablecoin swap

Go to Sun.io. You can notice the Stablecoin swap interface. There are four TRC20 stadrd stablecoins USDT, USDC, USDJ, and TUSD. You can swap one stablecoin for any of the other three. Just select the input and output, enter the quantity, and hit the Sell button. Please note that min amount to swap is 0.01 USD, that's the beauty of Tron DeFi. It lowers the barrier to entry.

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SUN Pools

Go to Sun.io. Click on the horizontal tab Stake. Alternatively, visit this link- https://sun.io/?lang=en-US#/stake

Sun.io has three different staking options to further earn more rewards:-

  • 3 Pool LP
  • USDC LP
  • SUN-TRX LP

3 Pool LP is a pool of 3 stablecoins USDJ, TUSD, USDT. The user needs to add liquidity in equal proportion to all three to obtain 3 Pool LP tokens.

USDC LP is pool of USDC+3 SUN. To obtain 3SUN token you can make use of the USDC pool swap facility where USDC and 3SUN can be swapped for each other. 1 USDC is equivalent to 3SUN.

SUN-TRX LP token can be obtained from Sunswap, by adding liquidity in the SUN-TRX Liquidity pool. That token can be staked here.

veSUN

veSUN= Vote Escrowed SUN

The phase 2 governance mining in Sun.io has already begun on 15th September 2021 and will end on 6th June 2026.

veSUN, the vote escrowed token gives users the voting rights for a specified period, and veSUN plays a vital role in the governance of Sun mining.

With veSUN, the users can boost their mining speed up to a max of 2.5x, they also earn extra rewards, as 50% of stablecoin swap fees are distributed among the veSUN holders. Furthermore, the weight of the liquidity pools in Sun.io is decided through veSUN community voting. The voting snapshot is taken every Thursday at 8:00(SGT) and accordingly, the weight of Liquidity pools are adjusted.

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The locking period for veSUN is from 6 months to 4 years. Once locked for a specified period, the user can not unlock veSUN until the locking period ends.

Calculation of veSUN by taking SUN

Quantity of veSUN = Quantity of locked SUN * (Expiry date - Current date)/4 years.

=> Quantity of veSUN = Quantity of locked SUN * (Expiry date - Current date)/1460 days

1 year= 365 days; 4 years= 365*4= 1460 days

Period of locking- 6 months to 4 years= 6 months to 48 months.

Quantity of veSUN= SUN(6/48) to SUN(48/48)= 0.125 SUN to 1SUN

If a user chooses a period of 4 years then he will get the veSUN same as the quantity of SUN locked. If a user locks his SUN for a period of 6 months then he will get 12.5% of the quantity of SUN locked.

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3-in-1 benefits of veSUN

  • Earn TUSD(50% fee of the stablecoin swap pool)
  • Boost mining speed as high as 2.5x
  • Voting rights to decide the weight of Liquidity pools

The users who chose to stake for a period of 6 months(lower threshold) reap the least benefits whereas the user who stake their SUN for 4 years, (to obtain veSUN) maximize their benefits in terms of 3-in1 benefits.

Use Boost calculator to know how much veSUN needed to boost the mining speed:-

  • Go to https://sun.io/?lang=en-US#/stake
  • Select particular pool-- 3 Pool LP, or USDC LP, or SUN-TRX LP
  • Click on Boost Calculator; a pop-up will appear, enter the quantity of the LP token you want to deposit/stake, then see at the bottom how much veSUN is required to maximize the mining speed. Please note that the max mining speed that can be achieved is 2.5x.

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For instance, if I am to deposit 10 "3 Pool LP tokens", to maximize the mining speed(2.5x) I need at least 4.82 veSUN

If I stake 4.82 SUN for a period of 4 years I will get 4.82 veSUN
If I stake 9.64 SUN for a period of 2 years I will get 4.82 veSUN
If I stake 38.56 SUN for a period of 6 months I will get 4.82 veSUN

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How do I swap USDC for 3SUN token using USDC Pool swap?

  • Go to https://sun.io/?lang=en-US#/usdc
  • Select swap 3SUN, check the box
  • Enter the quantities; INPUT(From), e.g. 1 USDC, The output(To) will automatically display the approx amount.
  • Select max slippage, by default it is 0.5%. You can also customize your slippage anywhere between 0.5 to 50%.
  • Hit the Sell button.
  • Approve the transaction, sign the transaction.

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How do I stake SUN to obtain veSUN?

  • Go to https://sun.io/?lang=en-US#/stake
  • Click on Lock SUN to get veSUN
  • Enter the quantity of SUN you want to lock, specify the period; I would lock 5 SUN for 4 years.
  • Hit the Deposit Button.
  • Sign and Authorize the Transaction.

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How do I obtain & stake USDC Pool token?

  • Go to https://sun.io/?lang=en-US#/stake
  • Scroll it down to USDC LP
  • Click on Get LP
  • Enter USDC & 3SUN quantity.
  • Hit the Deposit button.
  • Sign and Authorize the Transaction.

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How do I vote using veSUN?

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Thank you.

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Homework Task (Season 5/Week-1)

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

(2) Visit Sunswap and scan the different LP pools? How many different LP tokens are available in Sunswap? Based on the available data in Sun scan, how much fee did it generate in the last 24 hrs? What percentage of that fee is being utilized to buy back and burn SUN?

(3) Deposit either 3 Pool LP or USDC LP or SUN-TRX LP in Sun.io. Stake them to maximize the mining rewards? Demonstrate the entire process with a real transaction? (Screenshot required)? Include the resource consumption statement, take the help of Block Explorer?

Or,

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?

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

(5) What is stablecoin swap facility in Sun.io? How many different stablecoins are supported in the SUN platform? What is its use in the context of staking & mining?

Guidelines

  • Your article should be at least 500 words.
  • It is always better to gain user experience before submitting your article.
  • Refrain from spam/plagiarism. This task requires screenshot(s) of your own experience. Use images from copyright-free sources and showcase the source, if any.
  • This homework task will run until 20th Nov'2021, Time- 11:59 PM UTC.
  • Users with a reputation of 65 or above and a minimum SP of 900(excluding any delegated-in SP, delegating to vote-buying services is viewed negatively) are eligible to partake in this Task. (Must not be powering it down).
  • #club5050 status (last one month) is a prerequisite to participating in this homework task. The minimum threshold for Club5050 is 150 SP power up in the last one month regardless of the payout and earning. This is applicable for both active and inactive users. The upper threshold is subject to your cashout and earning for the specified period(i.e. last one month).
  • Add tag #sapwood-s5week1 #cryptoacademy in your post and should be among the first five tags. You can also use other relevant tags like #sun #tron #sunswap or any other relevant tag. And also make sure you post in the Steemit Crypto Academy community.
  • Those who include the real examples/screenshots will score better.
  • If you are using a wallet other than Steem integrated Tron wallet, you should mention it at the beginning of the post, so that we can verify the transactions required in this Task.
  • Your homework title should be Sun.io: Sunswap, Integrated stablecoin swap, Staking, Mining, veSUN, etc.- Steemit Crypto Academy- S5W1- Homework Post for @sapwood

Important Note:-

"If you have not had any earnings in the last one month, you will need to make a power-up of at least 150 STEEM to take part in the Academy(to validate your Club5050 status, inactive users).

This can either be from any liquid STEEM or SBDs you have, or you can buy STEEM from an exchange".

"Alternatively you can make posts outside of the Academy and wait until you have earnings from those posts to power up."

(Please feel free to join the comment section if you have any doubt on Homework-Task)

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Cc:-
@steemitblog
@steemcurator01
@steemcurator02

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Unless otherwise stated, all the images, infographics, charts, tables, etc(if any) are my original works. The screenshots are taken from Sunswap, Sun.io, etc.

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Thanks @sapwood for the nice lecture, I will make sure to submit my assignment soon.

Thanks

Thank you.

This is awesome, I can wait to submit my homework

Users with a reputation of 65 or above and a minimum SP of 900(excluding any delegated-in SP, delegating to vote-buying services is viewed negatively) are eligible to partake in this Task. (Must not be powering it down

Prof @sapwood what of users with reputation below 65? Let me say from 55+ and SP of less than 500

  ·  2 months ago (edited)

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Thanks very much Prof @sapwood.
Please I have a homework post under the Beginners fixed that will maturing tomorrow but has not been evaluated. And I really confused because I don't know why it hasn't been evaluated. I have read through severally, checked it for plagiarism time and time again and the portion outline by the plagiarism checker as plagiarized are the questions and a reference to the same work in steemyy.com. I don't know what is wrong that the work is not yet evaluated.
This is a link to the post Sir
https://steemit.com/hive-108451/@elian23khan/steem-and-tron-steemit-crypto-academy-season-4-homework-post-for-task-2

Alright, let me follow up with the Beginner-Fixed professor.

Okay Sir
Thank you very much

hi professor, i have made assignment 8th and 10th. it was 5 and 6 days ago, but not rated yet. and most importantly I have joined the club5050 program. I need your help for this, I hope you provide a solution.

8th assignment link
https://steemit.com/hive-108451/@robbee/decentralized-applications-dapps-crypto-academy-s5-homework-post-for-task-8

10th assignment link
https://steemit.com/hive-108451/@robbee/candlestick-patterns-steemit-crypto-academy-season-4-homework-post-for-task-10

Alright, let me follow up with the professor.

Nice lessons @sapwood. Always good delivery from you to us. Will surely participate.

Thank you.

Amazing chapter as always.

Thank U.

You can attempt a task only once regardless of grade/marks.

Thank you.

  ·  2 months ago (edited)

so in next task i should powerup at-least 150 steem it will be calculate
and one more think sir
it has been 6 days i get not rewards of my work Task 8

Yes, if you want to participate, you must fulfill the requirements in the context of eligibility.

Thank you.

yes sir i want to be participate in my last task beginner
because i want to participate in Beginners course

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Hello teacher, thank you very much for your class. I did this week's homework, but I notice that it is not listed on your tag #sapwood-s5week1, I checked it, and it is fine. Even so, it does not appear. If you prefer, I add the link of the task.