What is Sun Token (SUN)?

SUN.io was launched to promote the development of TRON’s DeFi ecosystem. Due to the community and the open-source smart contracts, SUN.io has affirmed ties with several other DeFi projects on the TRON public chain via decentralized liquidity mining. Liquidity mining means crypto users lend assets to a defined decentralized exchange (DEX) in return for rewards. Smart contracts are just like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on blockchain.

Using several transaction protocols, SUN.io seeks to create a combined DEX ecosystem with better functionality, gains, and security. The token also offers different incentives for users, such as the transaction fees being rewarded to liquidity market creators, staking rewards of the SUN coin, and liquidity mining of the LP tokens. A liquidity pool, or LP, is a collection of cryptocurrencies or tokens that are kept locked in smart contracts, enabling trading between two different assets on a DEX.

According to the whitepaper, SUN.io incorporates on-chain token swaps, stablecoin swaps, liquidity mining, and more on the TRON chain, supplying individuals with multiple one-stop services: 

1. Efficient and reliable exchanges among the tokens with better prices—SunSwap 

2. Helpful swaps among the stablecoins with less slippage and costs—stablecoin pool 

3. User-driven liquidity mining that can be increased—governance mining 

4. SUN token staking awards—received from the voting rights (veSUN)

The new protocol of SunSwap sustains the buyback and burning of a particular amount of rewards earned from the transaction fees on DEX. 

• Buyback Method: Via smart contracts, a portion of the transaction fees (around 0.05% of every transaction) is dedicated as LP tokens. Later, these tokens get swapped for SUN at a determined swap rate and are held in a specified address to be burned. 

• Burning Method: The SUN tokens held in the specific address are burned by moving those tokens to the blackhole address of TRON every month. Cryptocurrency burning is when a fraction of tokens are sent to a wallet with no private key. This means the tokens are lost forever. Tokens are usually burnt to reduce availability and increase market value.

During the entire process, the burning method of SUN and the voting privileges of the SUN holders create a closed-loop ecosystem.

Besides this, SUN also connects numerous heterogeneous blockchain networks and recognizes the cross-chain swap of the assets. The coin also provides users with a more suitable, cost-effective, and safe way to exchange assets across different blockchains.