SunSwap V2 is a decentralized exchange (DEX) built on the TRON blockchain, enabling users to trade TRC-20 tokens directly from their wallets. Operating on the Automated Market Maker (AMM) model, SunSwap V2 eliminates the need for traditional order books, offering a seamless and efficient trading experience.
At the heart of SunSwap V2 are liquidity pools, where users provide equal values of two TRC-20 tokens. These pools facilitate trades through smart contracts, with prices determined algorithmically based on the ratio of tokens in the pool. A 0.3% fee is charged on each trade, with 0.25% distributed to liquidity providers and 0.05% allocated to the SUN token holders' pool.
Liquidity pools are the backbone of SunSwap V2's functionality. By providing liquidity, users deposit equal values of two tokens into a smart contract and receive LP (Liquidity Provider) tokens in return. These LP tokens represent their share of the pool and can be staked to earn rewards.
SunSwap V2 charges a 0.3% fee on all trades. The fee structure is as follows:
This fee model ensures a sustainable economic ecosystem where traders pay reasonable fees, liquidity providers earn passive income, and SUN token holders benefit from protocol activity.
The SUN token plays a pivotal role in the SunSwap ecosystem. It serves as a governance token, allowing holders to participate in protocol decisions. Additionally, a portion of the trading fees is used to buy back and burn SUN tokens, reducing supply and potentially increasing value over time.
To begin trading on SunSwap V2, connect your TRON wallet, such as TronLink, to the platform. Once connected, you can start swapping TRC-20 tokens, providing liquidity to pools, or staking LP tokens to earn rewards.