DeFi platforms are getting more and more attention. In some ways, they are more true to the early cryptocurrencies attitude as DeFi projects move the financial sector towards decentralization. Again and again, the emerging decentralized platforms governed by the community provide services similar to banks, exchanges, and so on. DeFi projects allow users to store money, lend crypto coins, earn interest, and so on.
One of the ways the users of DeFi platforms can raise money is through liquidity provider tokens staking/mining. In 2020, one of the most popular companies involved in the crypto industry, Justin Sun’s Tron Foundation, came up with the new DeFi platform called SUN. The platform focuses on stablecons swaps, stake mining, and self-governance on Tron. Unlike many other popular DeFi projects, SUN doesn’t rely on the Ethereum-based tokens (as Ethereum is a Tron rival) and exists based on the Tron blockchain.
What Is SUN?
SUN is a DeFi platform and a native TRC20 token of this platform. It was created in 2020. SUN is not the only DeFi platform operating on the Tron virtual machine. The platform is allegedly 100% governed by the community and the future price of the SUN token depends on the community’s decisions and actions. No pre-mining or venture investors capital took place in launching the platform.
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The total supply of the token is 19,900,730 units. SUN tokens are mined via staking which is one of the main activities taking place on the SUN platform. The daily trading volume of the SUN platform exceeds $8 million.
The users of SUN can stake Tether (USDT), Wink (WIN), and tokens associated with Tron Foundation which are Tronix (TRX), SUN (SUN), JUST (JST), and Bittorrent Token (BTT). SUN smart contract is available for the third side audit to ensure the trust of users.
One of the first things you see when you proceed to the SUN website is that it is a platform that allows stablecoins swapping, stake-mining, yield farming, and Tron self-governance. To start using the platform you will need to create a TronLink wallet (or alternatively one of the following wallets: TokenPocket, imToken, or BitKeep) and connect it via the Connect to Wallet button on the homepage of the SUN website. It is possible to swap Tether (USDT), JUST (USDJ), and TrueUSD (TUSD) between each other via SUN. All trades are rooted via 3pool. The latter is a liquidity pool created within Curve, an Ethereum-based stablecoin trading platform.
SUN users can stake LP tokens (liquidity providers tokens). LP tokens represent the share of the tokens provided by a person in the liquidity pool associated with automated market maker platforms. As the LP tokens have many functions, people strive to get them via depositing money to the liquidity pools (providing liquidity). Some sell LP tokens, others stake them to get extra benefits on the platform.
Mining rewards in SUN tokens via staking LP tokens can bring additional profits from handling fees which amount to 50% of these fees. Staking SUN tokens on 3pool brings rewards in TUSD. The rewards are generated from the 3pool handling fees and amount to 50% of these fees.
What makes SUN special is that this platform allows users to move funds from pool to pool and even unlock the locked assets. This feature can be useful if you want to migrate your funds from the pool that ceased activity.
The SUN website seduces users with potential profits mentioned at the bottom of the homepage. According to what they wrote, staking coins on 3pool gives you over 26% in annual profit. SUN-TRX staking allegedly can give you a 117% annual profit. Staking SUN token profit depends. The minimum annual profit is 7% of unlocked staking in TUSD. The annual profit for locked tokens can reach 96% (SUN) plus 7% (TUSD).
https://t.co/OE3UOazYBd has the best rate for stablecoin staking in #Defi. #USDT/#USDJ/#TUSD staking pool for 33% APY and #SUN/ #TRX staking pool APY 133%. All supported by major exchanges in the world. pic.twitter.com/YLIjyhVTLN
— Justin Sun 🅣🌞 (@justinsuntron) June 24, 2021
On June 24, 2021, Justin Sun tweeted that the actual SUN/TRX staking pool APY is 133%. From reading the user reports, we can learn that profits can be affected by market trends. People are saying they have made really big money while others rather lost what they had. So before using the platform it’s better to learn how to earn via staking and yield farming and do research about the crypto market to understand its dynamics better.
How to Use SUN?
If you want to participate in 3pool liquidity mining you should connect the wallet and choose 3pool on the SUN website. Then, make a deposit. As soon as your deposit hits the pool, you will receive LP tokens. Also, you can participate in liquidity mining on JustSwap.org.
The SUN tokens you receive from staking should be vested in the SUN Reward Pool. You can do that in the Rewards segment on the SUN website. Then, you can claim the coins to your wallet.
Mining rewards are unlocked every week but to take all of them you will have to participate in mining for 24 weeks. You can withdraw 10% of the total amount of rewards whenever you want.
You can also participate in a stake and lock pool where you can stake SUN tokens and cannot perform an early exit. The TUSD and SUN rewards can be claimed at any moment. TUSD rewards are obtained from the stablecoin swap fees while SUN rewards originate from the early exit penalties. If you participate in a stake pool you are allowed to exit any time.
To participate in mining you should proceed to SUN.io, choose the pool and click the Approve LP button. Then, you will need to specify how much money you want to stake. Click on “Stake”, put the signature, and click “Accept”. The dashboard is updated in real-time. However, the 30 seconds delay is a normal thing on SUN.
For claiming rewards you should locate the active pool you were using for staking. Click on the “Select” button associated with the needed pool and choose the Claim option (the other one is Stake). After clicking on “Claim” you should click on “Accept”. You’re done!
If you want to transfer your funds from one pool to another you should proceed to the list of pools that are not active and choose the one with your assets. Then you should click on “continue mining to enjoy higher profits”. Each step should be authorized via a signature. If the migration fails you can unlock your assets manually. To do that you should open the list of active pools and select the pool with your assets. In the pop-up menu, you should choose the Claim option. Proceed to the “My Staked” section and provide how much you want to unblock. Then, click on “Claim and unblock”, and finally provide a signature. If you want to claim staked coins from the inactive pool you should open the “Ended” section, choose the pool with your money, and tap on “Claim and unlock”. A signature is required.
After a recent platform upgrade and integration with 3pool, the handling fees for stablecoin swaps got lower. Each transaction takes 0.04%.
Is SUN Safe?
There are little to no reasons to doubt the safety level of the SUN platform. The thing is that the platform is developed by Tron Foundation, a respectable and experienced company that values its reputation. The platform is audited and its source code is available for everybody. So far there are no reasons for concerns.
SUN is quite an innovative and fresh platform created to challenge Ethereum’s domination in the DeFi industry. Time will show how effective community-led governance is. Yet, SUN is an interesting and profitable hub for stablecoin swaps and stake mining.