SUN V2.0
Last updated: June 28, 2023

1 Introduction
SUN.io was founded to foster the growth of TRON’s DeFi ecosystem. Thanks to the communityand open-source smart contracts, SUN.io has established ties with other DeFi projects on the
TRON public chain through decentralized liquidity mining.
Up to now, SUN.io has gone through several iterations and acquired JustSwap. The upgraded
SUN.io platform integrates such functions as token swaps, liquidity mining, stablecoin swaps anddecentralized autonomous organisation (DAO) on the TRON public chain, focusing on building
TRON’s DeFi ecosystem with decentralized exchanges (DEX) at its core. As the native token of
SUN.io, SUN plays an important role in platform governance, buying back and burning rewards,
offering rewards to liquidity providers and other features, and aligns with TRON’s aspiration tobring common benefits to all users.

1.1 Vision
SUN.io aims to build an integrated DEX ecosystem with a high level of functionality, profitability
and security by leveraging multiple transaction protocols. It provides various incentives forparticipants, including rewards of transaction fees offered to liquidity market makers, liquidity
mining of LP Tokens and staking rewards of the SUN token. Meanwhile, the burning mechanism of
SUN and the voting rights of SUN holders together form a closed-loop ecosystem.

1.2 Market Prospects
DeFi started to rise in popularity in 2020 and gradually takes the main stage in blockchain. It saw
continued robust growth in 2021 and has become one of the largest applications of this industry.

Figure 1 TVL of the DeFi Market
The overall trend of the total value locked (TVL) directly reflects the development of the DeFi
market.
According to the latest statistics published by DeFi Llama (as of October 25, 2021), the TVL of
DeFi projects witnessed exponential growth since the beginning of 2021, reaching $240 billion at
its peak. A growing number of organisations are promoting greater TVL growth throughdeveloping mature and secure protocols. In addition, massive earnings generated by the DeFi
sector are encouraging individual investors to migrate from centralized platforms to the DeFi
space. Driven by increased adoption among all investors, DeFi is entering a new stage of growth.

1.3 Solutions of SUN
SUN.io, the first platform that integrates on-chain token swaps, liquidity mining, stablecoin swaps
and DAO on the TRON public chain, provides users with diversified one-stop services:●●●●

Efficient and secure swaps among any tokens with the best prices— SunSwap
Efficient swaps among stablecoins with low slippage and fees— Stablecoin pool
User-governed liquidity mining that can be boosted— Governance mining
SUN token staking rewards— Rewards from voting rights (veSUN)

2 Governance Mechanism
2.1 Economic ModelFigure 2 Distribution of the SUN Token
There are no pre-mining, tokens reserved for teams, cornerstone investment, or private placement
for the SUN token. Instead, various functions and mechanisms of the ecosystem guarantee that
the SUN token can be distributed in a fair and sustained way.
The distribution of SUN has gone through two phases— V1 and V2— as follows:
Distribution of SUN tokens (V1):●●●●

Genesis Mining 9.3%
Official Mining 15.6%
JustLend Mining 1.2%
Century Mining 2.4%

Distribution of SUN tokens (V2):●●●

Genesis Mining 4.2%
Governance Mining 19.1%
veCRV Airdrop 1.0%

Apart from the tokens distributed above, 47.2% of the SUN tokens remain undistributed.
Going forward, the SUN platform will take on more features as the ecosystem grows, and thenumber of use cases for the SUN token will further increase, incentivising users to make asustained contribution to the growth of the ecosystem.

2.2 Burning

The newest protocol of SunSwap supports the buyback and burning of a certain amount of
rewards from transaction fees on DEX.
Buyback Method: Through smart contracts, a proportion of the transaction fees (accounting for
0.05% of each transaction) is reserved as LP Tokens, which are then swapped for SUN at a
pre-determined exchange rate and stored in a designated address to be burned.
Burning Method: The SUN tokens stored in the above-mentioned address will be burned, bytransferring those tokens bought back within a month to the blackhole address of TRON
(T9yD14Nj9j7xAB4dbGeiX9h8unkKHxuWwb) each month.

2.3 Incentives
2.3.1 SUN Governance Mining
In the market maker mechanism of SunSwap, the depth of the transaction pool mainly comes fromliquidity providers (LPs). The swap mechanism in the stablecoin pool also requires users’ efforts toprovide liquidity so as to maintain stable prices for swaps. As a result, the governance mining of
the SUN platform now supports staking LP Tokens for mining on SunSwap and in the stablecoin
pool. In the meantime, users can participate in voting to determine the weight of a mining pool, andstake SUN to get veSUN as a boost multiplier for mining, which can motivate users to hold SUN fora longer term.
The SUN platform actively promotes more users to provide liquidity through a variety of ways.

2.3.2 SUN Staking Rewards
The SUN platform allows users to stake SUN to obtain veSUN. Based on the amount of veSUN
users hold, the platform delivers 50% of the transaction fees generated in the stablecoin pool toveSUN holders.

3 Underlying Technology
3.1 SunSwap AMM Model
SunSwap adopts the AMM (Automated Market Maker) model, the most widely-used transaction
model in DeFi. Unlike an order book of a traditional exchange, the AMM uses a constant-productmathematical formula to determine the prices of assets, so that transactions can be done in an
automatic way and the liquidity of trading pairs can be safeguarded.
A few definitions related to the AMM model are clarified as follows:

●
●
●
●

●

Liquidity: the sum of the two tokens in the smart contracts of a trading pair. We canincrease (provide) liquidity by staking the two tokens at the same time.
Liquidity Pool: the pool of liquidity, i.e. a collection of assets in the AMM. SunSwap
is able to match orders through AMM in the liquidity pool.
Liquidity Provider (LP): users who provide liquidity to the pool.
LP Token: A trading pair itself is a TRC-20 smart contract, whose tokens represent
the supply of liquidity and are referred to as LP Tokens. When LPs are offeringliquidity, SunSwap will mint tokens and grant them to LPs; it will burn LP Tokens
when LPs withdraw liquidity.
Liquidity Pool Share (LPS): the proportion of LP Tokens in circulation held by eachLP, showing the contribution rate of each LP to the total liquidity.
·

3.1.1 Creating Liquidity:
When a liquidity pool is first created, the original amount of the two tokens both stands at 0. In
order to make transactions possible, LPs have to stake a certain amount of the two tokens toinitiate the liquidity pool. The first LP is the one who sets the original price of liquidity and gains
his/her LPS.
The prices of the two tokens in the pool are determined by the relative amount of one token
compared to the other. This means that the total amount of the two remains the same, but theamount of each token will change after each transaction, leading to changes in prices as well. The
adjustments in prices are based on the formula below:

𝑥 × 𝑦 = 𝑘 (k represents a constant)
3.1.1.1 SunSwap V1 & V1.5
𝑥 and 𝑦 in the formula above refer to the amount of the two tokens respectively. According to thesmart contracts of V1 and V1.5, one of the tokens has to be TRX. This is why, in this section (3.1),
token X refers to TRX.
If the first LP provides an amount of 𝑥0 and 𝑦0 of the two tokens, and the LP Tokens are 𝑠0, then:𝑠0 = 𝑥0
e.g. If 𝑥0=100,000, 𝑦0=1,000, then 𝑠0=100,000, which means that after staking token X (TRX) andtoken Y, users can get 100,000 LP Tokens, and the total amount of LP Tokens in the liquidity pool is
100,000 as well. Therefore, the first LP holds a 100% LPS. Meanwhile, in the liquidity pool, therelative price of token Y to token X is: 1 Y=𝑥0/𝑦0 =100,000/1,000=100 X. For example, if token X
is TRX and Y is SUN, then 1 SUN = 100 TRX.

3.1.1.2 SunSwap V2
𝑥 and 𝑦 represent the amount of two different tokens. If the first LP provides an amount of 𝑥0 and𝑦0 of the two tokens, and the LP Tokens obtained are 𝑠0, then:*𝑠0 =Notes:**

𝑥0 * 𝑦0 − 1000

① The mark * means that the value is the real value without omitting decimal places. For example,*

19

if 𝑠0=10, and the decimal places of all LP Tokens are 18, then 𝑠0=10 .
② To prevent users from completely removing all liquidity, the deducted 1,000 (decimal places
18

omitted. The real value is 1000/10
address.

−15

= 10

) LP Tokens will be deposited into a blackhole−15e.g. Suppose 𝑥0=10 (decimal places: 18), 𝑦0=10 (decimal places: 18), we have 𝑠0=10 - 10

, which−15

means that users can get 10 - 10
LP Tokens after staking token X and Y. Also, the total liquidityof the liquidity pool is 10 as well, so the first LP holds a 100% LPS (with few tokens deposited into
the blackhole address). Meanwhile, in the liquidity pool, the relative price of token Y to token X is:1 Y=𝑥0/𝑦0 =100,000/1,000=100 X. For example, if token X is TRX and Y is SUN, then 1 SUN = 100
TRX.

3.1.1.3 SunSwap V3
SunSwap V3 adopts a concentrated liquidity model based on constant product, introducing theidea of virtual liquidity to SunSwap V2. The formula for this market maker model is the following:2（𝑥 + 𝑥_𝑣𝑖𝑟𝑡𝑢𝑎𝑙） * (𝑦 + 𝑦_𝑣𝑖𝑟𝑡𝑢𝑎𝑙) = 𝐿
It is clear from the mechanism of concentrated liquidity that x_virtual and y_virtual correlate with
p_upper and p_lower. The formula for the concentrated liquidity model can then be derived as thefollowing:（𝑥 +𝐿
𝑃𝑢𝑝𝑝𝑒𝑟） * (𝑦 + 𝐿 *2

𝑃𝑙𝑜𝑤𝑒𝑟) = 𝐿

It can be inferred from the formula that V3 allows users to provide liquidity within a certain pricerange, as illustrated below:

Figure 3 Simulation of real liquidity

SunSwap V3 calculates liquidity based on the formula

L= 𝑥𝑦
SunSwap V3 calculates prices based on the formula𝑝 = 𝑦/𝑥

It can be inferred from the above formulas that∆𝑥 = （

1

−

𝑝𝑐

1

）𝐿

𝑝𝑏

Note: ∆𝑥 represents the amount of token0 added; 𝑝𝑏 and 𝑝𝑐 represent the respective price of b andc in Figure 3.
∆𝑦 = （ 𝑝𝑐 −𝑝𝑎 ）𝐿Note: ∆𝑦 represents the amount of token1 added; 𝑝𝑎 and 𝑝𝑐 represent the respective price of a andc in Figure 3.
Two liquidity formulas can be thereby derived:

L= ∆𝑥

𝑝𝑏

𝑝𝑐

𝑝𝑏 − 𝑝𝑐L=∆𝑦𝑝𝑐 − 𝑝𝑎

Take the minimum of the two L values as the liquidity obtained.
Example: Add 1 X and 5,000 Y to a spot pool where 1 X = 5,000 Y. Set the lower limit of the pricerange to 4,545 Y and the upper limit to 5,500 Y. The liquidity obtained is calculated as follows:
𝑝𝑐 = 5000/1≈70. 71,
𝑝𝑏

𝐿 = Δ𝑥𝑝𝑐

𝑝𝑏 − 𝑝𝑐𝐿=∆𝑦𝑝𝑐 − 𝑝𝑎

𝑝𝑏 = 5500/1≈74. 16,

𝑝𝑎 = 4545/1≈67. 42.

74.16*70.71= 1𝑋 * 74.16−70.71 ; output L in Q64.96 format, L=1519437308014769733632.
5000𝑌= 70.71−67.42 ; then output L in Q64.96 format, L=1517882343751509868544. Take

the minimum of the two values, and the liquidity is 1517882343751509868544.

3.1.2 Increasing Liquidity:
When there is existing liquidity in the pool, additional liquidity can be added according to the ratioof the amount of token X to token Y, and LP Tokens will be minted based on this ratio as well.

Suppose the current amount of token X is 𝑥𝑐𝑢𝑟𝑟𝑒𝑛𝑡, that of token Y 𝑦𝑐𝑢𝑟𝑟𝑒𝑛𝑡, and that of LP Tokens
𝑠𝑐𝑢𝑟𝑟𝑒𝑛𝑡; the newly-added amount of token X is 𝑥𝑎𝑑𝑑 and Y 𝑦𝑎𝑑𝑑 (under common circumstances,
𝑥𝑐𝑢𝑟𝑟𝑒𝑛𝑡/𝑥𝑎𝑑𝑑 = 𝑦𝑐𝑢𝑟𝑟𝑒𝑛𝑡/𝑦𝑎𝑑𝑑, so liquidity is added based on the same ratio), and the amount of new
LP Tokens is 𝑠𝑎𝑑𝑑, then we have:𝑥𝑦𝑐𝑢𝑟𝑟𝑒𝑛𝑡

𝑐𝑢𝑟𝑟𝑒𝑛𝑡

𝑠𝑎𝑑𝑑 = 𝑚𝑖𝑛( 𝑥 𝑎𝑑𝑑 , 𝑦 𝑎𝑑𝑑 ) × 𝑠𝑐𝑢𝑟𝑟𝑒𝑛𝑡
E.g. If another user adds 2000 X and 20 Y to the liquidity pool, he/she can get 2000 LP Tokens.

3.1.3 Withdrawing Liquidity:
When a user withdraws liquidity, he/she can get X and Y according to the same ratio.
Suppose the current amount of token X is 𝑥𝑐𝑢𝑟𝑟𝑒𝑛𝑡, that of token Y 𝑦𝑐𝑢𝑟𝑟𝑒𝑛𝑡, that of LP Tokens 𝑠𝑐𝑢𝑟𝑟𝑒𝑛𝑡,
and the amount of LP Tokens to be removed is 𝑠𝑟𝑒𝑚𝑜𝑣𝑒, then the user can get an amount of 𝑥𝑤𝑖𝑡ℎ𝑑𝑟𝑎𝑤
and 𝑦𝑤𝑖𝑡ℎ𝑑𝑟𝑎𝑤 of the two tokens respectively, as shown:𝑠

𝑥𝑤𝑖𝑡ℎ𝑑𝑟𝑎𝑤 = 𝑠𝑟𝑒𝑚𝑜𝑣𝑒 × 𝑥𝑐𝑢𝑟𝑟𝑒𝑛𝑡 ,𝑐𝑢𝑟𝑟𝑒𝑛𝑡

𝑠𝑟𝑒𝑚𝑜𝑣𝑒

𝑦𝑤𝑖𝑡ℎ𝑑𝑟𝑎𝑤 = 𝑠𝑐𝑢𝑟𝑟𝑒𝑛𝑡

× 𝑦𝑐𝑢𝑟𝑟𝑒𝑛𝑡

3.1.4 Swapping
Swapping is also based on the constant product formula, with 𝑥 and 𝑦 representing the amount oftoken X and token Y:
𝑥 × 𝑦 = 𝑘 (k represents a constant)
If the user wants to swap token X for Y in the liquidity pool, suppose the amount of X to be
swapped is ∆𝑥 and the amount of Y gained ∆𝑦, then:（𝑥 + ∆𝑥) × (𝑦 − ∆𝑦) = 𝑘𝑘∆𝑦 = 𝑦 − 𝑥+∆𝑥 =∆𝑥 × 𝑦𝑥+∆𝑥

As is shown, the product of the total amount of X and Y always remains the same before and after
the transaction. This means that the price of this transaction can be seen as the ratio of the amountof token X to that of Y, given that the amount in this transaction is relatively small compared to thetotal tokens of the liquidity pool.
∆𝑥

𝑝𝑟𝑖𝑐𝑒𝑦 = ∆𝑦 =

𝑥+∆𝑥
𝑦

𝑥

≈ 𝑦

During an actual transaction, 0.3% will be deducted as transaction fees, before the following
calculation is done based on the constant-product invariant.
E.g. There are 100 X and 1 Y in the liquidity pool. If one wishes to trade 20 X through the swapping
mechanism, then the actual amount to be swapped is 19.94 X (0.3% deducted as fees). According
to the formula 𝑥 × 𝑦 = 𝑘, we have:（100 + 19. 94） × （1 − ∆𝑦） = 100∆𝑦 = 0. 1662
This means one can swap 20 X for 0.1662 Y.

3.2 SUN StableSwap Model
The swap for stablecoins on SUN adopts a totally different model from SunSwap: StableSwap.
With the development of stablecoins, apart from the mainstream USDT, other stablecoins can also
be traded on the TRON public chain, like USDJ, TUSD and USDC. The growing market share andvariety of stablecoins have given rise to the massive and multifarious demand from users forswapping stablecoins. The unique StableSwap model, thanks to its low fees and low price slippage,
becomes the best choice for users to swap stablecoins.

3.2.1 How StableSwap Works (two-token case)
The core of the StableSwap model is to lower price slippage while ensuring that the liquidity poolcan provide liquidity at any price. To achieve this end, we combined the constant sum with theconstant product formula. Though StableSwap supports multiple-token market making, we will
explain how this model works taking two-token market making as an example because it is easierfor you to understand.
The constant sum formula is as follows: 𝑥 + 𝑦 = 𝑐𝑜𝑛𝑠𝑡. (const. refers to a constant)
As the slope of this linear function is invariable, transactions come with zero slippage. If you have
two tokens X and Y, selling 𝑑𝑥 of coin X will lead to buying − 𝑑𝑦 = 𝑑𝑥 of coin Y, which means theprice determined as − 𝑑𝑥/𝑑𝑦 is always the same. However, this market maker model has its
problem - the exhaustion of liquidity. Suppose const. = 10, if a user sells 10 X, then there would bezero Y in the liquidity pool.
On the other hand, the constant product function is 𝑥 × 𝑦 = 𝑐𝑜𝑛𝑠𝑡.

As the curve of this function extends along the coordinate axes infinitely, the liquidity of any token
can never be zero, which means users can always trade one asset for the other asset. However, theslope of this curve is ever-changing, leading to changes in prices. In this way, users can nevercomplete all swaps at a constant price, suffering from slippage instead.
We can take a look at the figure below to better compare the features of the two formulas.

Figure 4 Constant sum and constant product models

To better leverage the advantages of both, StableSwap integrates the two formulas. Thus, we
introduced the sum of the constant sum and constant product: α（𝑥 + 𝑦） + β(𝑥𝑦) = 𝑐𝑜𝑛𝑠𝑡. As isshown in Figure 4, this curve stands between the constant sum and the constant product function,
like a pan mapped to the two-dimensional surface.

Figure 5 Hybrid constant function model

When trading within the range of the “bottom of the pan”, users get to enjoy relatively stableprices and thus avoid slippage. This also means that the market maker model is not suitable forassets with volatile prices, but only for the swap of stablecoins. For liquidity providers, StableSwap
dramatically reduces the risk of impermanent loss, which is greatly lower than the constantproduct model as long as the prices are within the “bottom of the pan”. Even if the prices move tothe two sides of the “pan”, arbitrageurs will quickly engage in arbitrage to pull the prices back to
the “bottom”. Meanwhile, the two sides of the “pan” extend along the two axes infinitely, avoiding
the exhaustion of liquidity. At any price, no asset will be zero, though there may be high slippage.

3.2.2 How StableSwap Works (multiple-token case)In this section, we will introduce the model more detailedly on how exactly StableSwap works inthe case of multiple tokens. The constant sum function can be generalized for any number oftokens having a linear invariant:
𝑥𝑖 = 𝑐𝑜𝑛𝑠𝑡
The generalization also goes for the constant product invariant:
𝑛

∏ 𝑥𝑖

𝑖=1

𝑤𝑖

= 𝑐𝑜𝑛𝑠𝑡.

𝑥𝑖 refers to the reserve of each asset, 𝑤𝑖 the weight of each asset and 𝑐𝑜𝑛𝑠𝑡. a constant.
In actual use cases, the formulas are simplified as the two fundamental ones:
𝑛

𝑛

𝐷 𝑛

∑ 𝑥𝑖 = 𝐷 & ∏ 𝑥𝑖 = ( 𝑛 )

𝑖=1

𝑖=1

𝐷 represents the total supply of tokens in the liquidity pool when the price (or amount) of all
tokens is the same; 𝑛 refers to how many types of tokens there are in the pool.
Based on the two formulas, we introduced χ, the weight of the constant sum invariant. When
χ = 0, the formula is the constant product one; when χ → ∞, it is the constant sum invariant; when
χ assumes a value in between, it is the combination of the two.
In addition, considering the number of different tokens 𝑛 may vary, we multiply the two sides of𝑛−1

the equation by χ𝐷, then add the constant product function and get the following:
𝑛−1

χ𝐷

𝐷 𝑛

𝑛

∑ 𝑥𝑖 + ∏ 𝑥𝑖 = χ𝐷 +( 𝑛 )In addition, to allow χ to be adjusted when the price deviates from 1 by a large margin, we
introduced the constant 𝐴 and variable
∏𝑥𝑖
𝐷 𝑛

∏𝑥𝑖

𝐴∏𝑥𝑖

∏𝑥𝑖

(𝑛)

(𝑛)

(𝑛)

. We can get χ =𝐷 𝑛, by multiplying 𝐴 and
𝐷 𝑛

𝐷 𝑛

, withbeing the balance level of liquidity in the pool.

(𝑛)

When the distribution of tokens in the liquidity pool is completely balanced,

∏𝑥𝑖
𝐷 𝑛

= 1, χ = 𝐴;

(𝑛)

while

∏𝑥𝑖
𝐷 𝑛

and χ both are close to zero when the distribution is extremely unbalanced, so the(𝑛)function becomes the constant product one. As the constant sum function only applies to the casewhen the relative price has no volatility and stands at 1, it does not suit the scenario of extreme
unbalanced distribution of tokens in the pool with the price deviating from 1 by a sharp margin.
Substitute χ into the equation, and we can get the market maker function in the end:𝑛𝑛

𝐴𝑛 ∑ 𝑥𝑖 + 𝐷 = 𝐴𝐷𝑛 +

𝑛+1

𝐷

𝑛

𝑛 ∏𝑥𝑖

Based on the function, the swap of tokens can impact on the value of 𝑥𝑖. Take USDT, USDJ and
TUSD in 3pool for example. Let’s suppose the supply of the three tokens is 𝑥1, 𝑥2 , 𝑥3 respectively.
，，，

The value of 𝑥1 will become 𝑥1 when we sell (𝑥1 − 𝑥1 ) USDT to get USDJ. If we substitute 𝑥1 into，，

the equation above, we can calculate 𝑥2 , and 𝑥2 − 𝑥2 is the number of USDJ tokens obtained.
During this process, 𝐴 and 𝐷 both remain the same.
But this does not mean 𝐴 and 𝐷 are always invariable.
When LPs increase or reduce liquidity of the pool, 𝐷 will change accordingly. Based on the formula
above, the new 𝑥 will be used to calculate the new 𝐷. 𝐷 will be greater if liquidity rises, and smaller
if liquidity narrows.
As is shown in Figure 5, with 𝐴 unchanged, higher 𝐷 will move the curve upwards, with the “bottomof the pan” larger than before, vice versa.

Figure 6 Changes of 𝐷
𝐴 is an adjustable parameter. When 𝐷 remains the same, we can see from Figure 6 how the change
of 𝐴 influences the market making curve. The greater 𝐴 is, the more the curve approaches theconstant sum curve, and the larger the area of the “bottom of the pan”, otherwise, the closer the
curve is to the constant product curve, the smaller the "bottom of the pan" area.

Figure 7 Changes of 𝐴

3.3 Benefits for veSUN Holders
At present, the SUN platform allows users to stake SUN in exchange for veSUN. Users who holdveSUN enjoy the following benefits:●●●

get rewards from transaction fees in the stablecoin poolboost liquidity pool mining
vote for the weights of liquidity pools

3.3.1 How to Get veSUN
Users can get veSUN by staking SUN. The details are as follows:
If SUN is staked for a duration of 𝑡1 (𝑡1 ≤ 𝑡𝑚𝑎𝑥 =4 years), then we have𝑡

𝐴𝑚𝑜𝑢𝑛𝑡𝑣𝑒𝑆𝑈𝑁 = 𝐴𝑚𝑜𝑢𝑛𝑡𝑆𝑈𝑁 𝑡 1

𝑚𝑎𝑥This means that veSUN (voting rights) shares a linear relationship with the amount of SUN and thestaking duration (𝑡1). 𝑡1 is a real-time value, which means that as time passes, 𝑡1 will decrease, so
the amount of veSUN will be smaller accordingly. veSUN will become zero if SUN is unstaked.

3.3.2 Get Rewards from Transaction Fees
The platform grants 50% of the transaction fees in all stablecoin pools to veSUN holders in theform of TUSD.
At present, we take multiple snapshots of the amount of veSUN held by users within each round(from Thursday 00:00 to Tuesday 00:00 next week). After the round ends, the weighted TUSD
rewards will be calculated and rewarded to users in proportion to their veSUN holdings bytriggering smart contracts.

3.3.3 Boost Liquidity Pool Mining
Unlike ordinary liquidity mining, the governance mining of SUN takes into consideration veSUN*

and introduces a new concept, virtual balance 𝑏𝑢, to the calculation of the input of users.
*

The value of 𝑏𝑢 is related to the user’s real balance 𝑏𝑢, the total liquidity in the liquidity pool 𝑆, theamount of veSUN held by the user 𝐴𝑚𝑜𝑢𝑛𝑡𝑢 and the amount of veSUN on the whole platform
𝐴𝑀𝑂𝑈𝑁𝑇, as shown:
𝐴𝑚𝑜𝑢𝑛𝑡*𝑏𝑢 = 𝑚𝑖𝑛(0. 4𝑏𝑢 + 0. 6𝑆 𝐴𝑀𝑂𝑈𝑁𝑇𝑢 , 𝑏𝑢)*

Based on this formula, the virtual balance 𝑏𝑢 only represents 0.4 times the actual balance 𝑏𝑢 if a*user does not hold any veSUN, but if the user holds enough veSUN, 𝑏𝑢 , at its maximum can beequal to 𝑏𝑢.
As the mining rewards are distributed based on the virtual balance, with the same actual balance,
veSUN holders can boost their mining speed up to 2.5 times that of non-veSUN holders.
In addition, the value of the amount of veSUN is stored in smart contracts and is only changed
when users deposit or withdraw tokens, or claim rewards.

3.3.4 Vote for the Weights of Liquidity Pools
Users can leverage veSUN to vote for mining of different liquidity pools. Snapshots of the votes
will be taken each week to determine the weights of pools for the next week.
With the value of veSUN decreasing all the time, users can vote according to the percentage ofveSUN they hold. To prevent users from changing their votes too frequently, they are only allowed
to change their votes 10 days after voting in a mining pool.
As this feature only requires the value from the veSUN smart contracts, other use cases for veSUN
will not be affected.

4 Milestones
4.1 SUN 1.0
4.1.1 Genesis Mining
In September 2020, Genesis Mining was initiated, allowing users to stake TRX in smart contracts
to get SUNOLD. After this mining stage ended, SUNOLD was delivered to users automaticallythrough smart contracts.

4.1.2 Official Mining
In the middle of September 2020, official mining offered multiple mining pools including TRX, JST,
USDT, SUNOLD, USDJ, WIN, BTT, quality community projects and liquidity mining pools, whereusers could engage in mining through staking.

4.1.3 JustLend Mining
In December 2020, the SUN platform supported mining by depositing TRX, JST, USDT, SUNOLD,USDJ, WIN, BTC, ETH and WBTT.

4.1.4 Century Mining
In March 2021, the Century Mining was initiated, supporting the mining of SUNOLD, TRX, JST,BTT and WIN by staking LP Tokens on JustSwap and depositing jTokens on JustLend.

4.2 SUN 2.0
4.2.1 SUN Redenomination Plan
In May 2021, to lower the threshold for users to hold tokens and promote the SUN ecosystem, theSUN tokens were redenominated at a ratio of 1:1000 and the total supply changed from19,900,730 to 19,900,730,000, while the market cap of SUN is maintained. To better differentiate
the old and new tokens, we refer to the old SUN tokens as SUNOLD and rename the new tokens as
SUN, assuming a brand new logo.

4.2.2 Platform Upgrading
In May 2021, the SUN platform was upgraded to the first integrated platform of stablecoin
swapping, token mining and DAO.

At the preliminary stage of its initiation, SUN introduced the 3pool swap pool, supporting the swap
among USDT, USDJ and TUSD. The later upgraded platform enjoys advantages of low transaction
fees, slippage and impermanent loss, with higher efficiency and security.

4.2.3 Brand-New Mining Model
In June 2021, SUN 2.0 introduced new mining models of 3pool LP, SUN-TRX LP, SUN Stake and
SUN Stake & Lock, with two phases: Genesis Mining and Governance Mining.
During Governance Mining, users could stake SUN to get voting rights (veSUN), and vote to decide
the weights of different liquidity pools in mining.

4.2.4 New Stablecoin Pool - USDC Pool
In August 2021, the platform launched a new stablecoin pool: USDC Pool (USDC+3SUN). The
liquidity mining pool of USDC LP arrived at the same time, where users could stake tokens toparticipate in governance mining and gain rewards.

4.2.5 Second Phase of Governance Mining
On September 15, 2021, the second phase of SUN Governance Mining went live, during which therole of veSUN (voting rights users obtained by locking SUN) was further exploited on the SUN
platform.
The main use cases for veSUN are: obtaining TUSD rewards, boosting liquidity pool mining andvoting to determine the weights of liquidity pools in mining.

4.2.6 Acquisition of JustSwap
In October 2021, SUN completed the acquisition of JustSwap, which marks our brand upgrade andefforts to build the largest decentralized exchange on TRON.

5 Future Plans
5.1 Optimize User Experience
5.1.1 Improve Asset Utilization Efficiency
The SUN platform will optimize our current AMM program and StableSwap models, enhancing
features such as liquidity pooling, orders within certain price ranges, limit orders and providing
liquidity for a specific token. Through technological upgrading and business model innovation, we
can help users reduce their impermanent loss.

5.1.2 Facilitate Trading Across Chains

Going forward, SUN will connect multiple heterogeneous blockchain networks and realize thecross-chain swap of assets. We will offer users a more convenient, cost-effective and secure way
to trade assets across various blockchains.

5.1.3 Optimize User Experience
To cater to users’ preferences and enhance interactions, SUN will boost user experience by
upgrading our product portfolio in terms of their availability, operability and security.

5.2 Expand Product Ecosystem
5.2.1 Provide Diverse DEX Products
Based on current products and user profiles, we will introduce other DEX products like smart
routes, orders within certain price ranges, limit orders, market making for a specific token, margin
trading and futures trading to provide the platform with more diverse use case scenarios andimprove the utilization ratio of users’ assets.

5.2.2 Build a One-Stop DeFi Platform
Based on current DEX products, the SUN platform will provide our users, including market
makers, traders and arbitrageurs, with more choices, higher profitability and more convenient
one-stop services by way of smart routes, investment plan recommendation and integration ofmultiple models, combined with other lending and insurance products.

5.2.3 Join Hands to Make DeFi Prosper
Apart from developing proprietary products, we also hope to work with more developers andpartners to build a better ecosystem of SUN. Through IDO, fund investment and project
incubators, we can jointly contribute to the prosperity of DeFi with all-round support of funds,
technology and other resources.

5.3 Grant Value to Users
5.3.1 Long-Term Mining Program
To incentivize users participating in the SUN ecosystem, we will continue to launch mining
programs, including but not limited to liquidity mining, SUN-staked mining, etc.

5.3.2 Promote DAO Program

The SUN platform will advance its decentralized autonomous organization (DAO) program. With
SUN as the sole governance token, the platform grants users the right to determine future
development paths of all products.

5.3.3 Maintain Token ValueIn the future, transaction fees will only account for a fraction of the revenue of the SUN platform,
while revenue from other products will be bought back, burned and redistributed, along with
future R&D, to maintain the value of the SUN token, bringing benefits to users in a sustained way.