SUNSwap is a decentralized cryptocurrency exchange that was created in 2020 on the basis of the SunSwap protocol. The SunSwap protocol is a decentralized AMM protocol that runs on principles different from those utilized on many other trading platforms. At this, its users don’t have to make offers and matchmaking orders for the conversion of their cryptocurrency assets, since the facility doesn’t have a centralized mechanism for it. Instead, the functionality of the exchange is based on self-executable smart contracts that regulate all activities across different transaction pools.
The platform known previously as JustSwap was developed to facilitate the exchange of TRON tokens into other digital assets at the market rate. The goals have been achieved thanks to the automated liquidity provision. The team standing behind the project understood the necessity of a more complex infrastructure. With this thought in mind, its members started developing a one-stop facility with numerous products, each fitting the particular requirements of the target audience.
The company was rebranded in 2021 and acquired the name SunSwap as another project SUN.io purchased the platform. As a result of this merger, the company announced the creation of many new services including stablecoin swapping and token minting. Also, the founders decided to introduce self-governance for the platform users.
The purchase of JustSwap was quite a significant event shaping the landscape of the whole decentralized industry. Justin Sun, the founder of the resource, announced on social media several new changes introduced on the renewed platform. They refer primarily to the implementation of BTTC DeFi cross-chain bridge and all-chain transactions, which can make SUNSwap the biggest DeFi platform in the future. However, despite the huge potential of SunSwap to become a leading DeFi hub, such transformation can’t be completed within a short timeframe. Therefore, the team has developed the schedule according to which the improvements are introduced step-by-step.
As stated above, the SUN token is the core element of the system as it is used for governance on the platform. The team plans to strengthen its utility by making it possible to use it for liquidity providers’ rewards and by introducing a burning economy to raise the tokens’ value. The implementation of SUNSwap V2.0 falls upon the third phase of the roadmap that pursues the goal to develop liquidity mining, while the fourth phase is concentrated on the full integration of Sunswap and Sun.io. The final phase includes the implementation of the aggregation pool with a newly minted token veSUN (Vote Escrowed SUN).
The SunSwap platform
The founders of the exchange have introduced the native token SUN aiming to turn the platform into a whole ecosystem with powerful elements and tools. One of the key token features is the governance as its holders can vote on various proposals designed to improve the work of the platform, as well as on new products and services. Other functions include staking, liquidity mining, and TRC20 token swap services.
The team has released SunSwap 2.0 aiming to turn the facility into the biggest DeFi platform within the TRON ecosystem capable of adding liquidity to TRC20 tokens. With the assistance of new technologies, the members of the platform don’t have to purchase TRX any longer when there's a necessity to swap TRC20 tokens. Instead, it is possible to skip this phase and add liquidity directly. Besides, there is an opportunity to convert TRX to TRC20 and vice versa since the exchange supports this option, too.
The actual upgrade of the exchange occurred with the expansion of available services. Though the platform actually has merged with the other one, the final product shouldn’t be considered as a combination of services. Instead, the founders want users to regard it as a combination of the platform’s benefits. For instance, the two platforms have started functioning as a decentralized exchange backing transactions with stablecoins. Additionally, the version 2.0 of the SUNSwap protocol helps to find an optimal swap path thanks to the improved swap routing. This increases the efficiency of exchange operations.
The Tronscan service enables users to create new tokens. Users have the possibility not only to easily issue new tokens on SunSwap but also to add them to trading pools after the review performed by Tronscan. Those members of the community who establish the fund pool set the token price and deliver liquidity to it by adding a corresponding amount of TRX tokens along with the new token. In case the rates are unreasonable, they can be corrected by external arbitrage. There is a risk of exchange failure due to the low bandwidth and low slippage percent. However, it can be easily overcome by modifying settings and slippage percentage.
SunSwap financial details
SunSwap charges LPs a 0.3% fee per transaction. The same rate is applied to TRX transactions. The accumulated fees are used to reward liquidity providers who operate on the protocol.
The SUN token is needed for participation in voting, which is a procedure inherent to the decentralized governance structure. Thus, each token holder can influence the future of the platform and feel more engaged for this reason. Tokens are also used to reward stakeholders. The token can be stored on the DeFi wallet Tronlink. It is fully integrated into the system, so it’s enough to create a wallet to get its functionality at your disposal.
The SUNSwap team
Justin Sun, the CEO and the founder of the TRON platform, is a famous figure in the cryptocurrency industry. Though he left his position as CEO at TRON in December 2021 to become Permanent Representative of Grenada to the World Trade Organization (WTO), he still continues to promote its assets.