SunSwap

SunSwap Pools - Liquidity on TRON

SunSwap

Liquidity pools and LP tokens

A SunSwap pool is the pair of tokens a sun swap trades against. Liquidity is the sum of those two balances in the contract. You add liquidity by depositing both tokens. SunSwap mints an LP token, a TRC-20 that marks your share. Trading fees accrue to that share. Burning the LP token withdraws the underlying tokens. That is the pool behind every tron swap on sun io.

On a V2 constant-product pool you deposit both tokens in the current ratio. The SUN white paper's example takes 0.3% as the trading fee. SUN.io uses 0.05% of V2 trading volume to buy back and burn SUN. A V3 position is different: you pick a price range, and you earn fees only while trades pass through that range. The stablecoin pool uses another curve entirely and is the wrong place for a volatile pair.

Providing liquidity is not a loan and not a stake of SUN. You are holding both assets, and the ratio changes as traders swap. If one token runs up against the other, you end up with more of the weaker one. That is impermanent loss. Read the tokens in the pair before you deposit. An LP token is only as sound as the contracts and the assets inside the pool.

How to add liquidity

  1. Choose the pair and the version. V2 is the full range. V3 is a range you set.
  2. Deposit both tokens in the ratio the pool requires, and sign.
  3. Hold the LP token. Fees accrue to it. Mining, if you stake it, is a separate step.
  4. Withdraw by burning the LP token back into the two assets.

Frequently asked questions

What is a SunSwap LP token?

An LP token is your receipt for liquidity in a SunSwap pool. It earns a share of trading fees. Burning it withdraws the underlying tokens.

Do I earn SUN just by adding liquidity?

You earn trading fees on the LP token. Extra mining rewards, when a pool has them, require staking that LP token. Locking SUN for veSUN is a different position and can boost mining.

Can I lose money in a pool if I only wanted to swap?

A swap spends one token and receives the other. Adding liquidity keeps you in both. If you only wanted a tron swap, do not deposit into the pool.