Crypto Academy Week 15 | Homework post for @sapwood | Liquidity Mining (Tron- Sun.io)
Introduction
It's an honour to be here again at the academy for the new week of intense crypto education as we learn from the seasoned crypto professors. This week, I've attended the lecture presented by professor @sapwood which took us on a ride about Liquidity Mining (Tron - Sun.io). Join me as I solve the task given by the professor.
Introduction to Liquidity Mining
The exchanges are often characterized with high liquidity because of the existence of the order book that allow traders to easily place orders (buy or sell), having buy value to be the bidding price and the sell value to be the asking price which has its differences to be the spread. Unlike the centralized exchanges, Decentralized exchanges are characterized with complex liquidity and as such, AMM (Automated Market Marker) is used to quote prices on DEX utilizing the tokens supplied into the liquidity pool by the liquidity providers.
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As a liquidity provider, users can enjoy the privilege of earning from their supplied liquidity as exchange fees from every activities on the DEX are distributed amongst the liquidity providers of a particular asset pair. In addition, users can as well stake their obtained liquidity pool token to earn liquidity mining rewards. Let's see how this works through justswap.io and sun.io.
1. How do I connect my TronLink Wallet to Sun.io?(Screenshots needed)
The process of connecting my TronLink Wallet to sun.io are listed below;
- I opened my TronLink Wallet on my phone.
- From the Wallet's homepage, I selected discover at the bottom to access the dApps.
- In the address bar, I typed in sun.io/ to visit.
- By visiting sun.io, my TronLink wallet is automatically connected.
- To check the connection, I selected the three parallel lines menu icon at the top-right of the page and clicked on the wallet to see the details.
Screenshots below
My TronLink Wallet connected to sun.io
2. What are the different liquidity mining pools? Which one offers the highest APY? How many different rewards do I get by staking LP token? (Screenshots needed)
Different liquidity mining pools on Sun.io
By exploring sun.io, I realized at the moment there are 9 different liquidity mining pools available which are listed below;
- USDT-TRX LP (Tether Stablecoin-Tron).
- USDJ-TRX LP (Just Stablecoin-Tron).
- TUSD-TRX LP (True Stablecoin-Tron).
- SUN-TRX LP (Sun-Tron).
- WBTT-TRX LP (Wrapped BTT-Tron).
- JST-TRX LP (Just-Tron).
- BTC-TRX LP (Bitcoin-Tron).
- ETH-TRX LP (Ethereum-Tron).
- WIN-TRX LP (Wink-Tron).
See the screenshots of the liquidity mining pools below
The liquidity pool that offers the highest APY on Sun.io
The liquidity pool that offers the highest APY (Annual Percentage Yield) is SUN-TRX LP with 36.27%. The screenshot below shows the SUN-TRX LP APY.
SUN-TRX LP- 36.27% APY
How many different rewards do I get by staking LP token?
The token rewards I get for staking LP token is 5 in number and they are namely; TRX (Tron), JST (Just), WIN (Wink), SUN (Sun) and BTT (BitTorrent).
LP token rewards- TRX, JST, WIN, SUN, BTT
3. How do I obtain LP Token by adding liquidity in Justswap? What is the quantity(Explore through your wallet/Tronscan)?(Screenshots needed)
How I obtained LP Token by adding liquidity in Justswap
The steps to obtaining LP Token by adding liquidity in JustSwap involves the following steps; Note: I will be accessing JustSwap from my TronLink Wallet mobile application.
- I opened my TronLink wallet from my Android phone.
- Clicked discover at the bottom of the page to visit justswap.io/.
- On the JustSwap landing page, switched to Pool and clicked Add liquidity.
- I chose the USDT-TRX pair, supplying 15 TRX.
- I inputted 15 TRX + 1.059 USDT and clicked Supply, and Confirm Supply.
- I supplied my password to proceed.
- The adding liquidity transaction was successful.
Screenshots are shown below
The quantity of LP token obtained (Information on my TronLink Wallet
From my adding liquidity transaction on justswap.io, through the 15 TRX + 1.059 USDT supplied into USDT/TRX pair, I obtained LP token of 17.90678 S-USDT-TRX.
17.9 S-USDT-TRX- LP token acquired in my wallet
Adding Liquidity Transaction Details from Tronscan
Adding liquidity transaction details
Supply: 15 TRX + 1.059 USDT.
Transaction type: TRC20 Transfers.
Bandwidth consumed: 383 Bandwidth.
Energy consumed: 60,902 Energy.
TRX burned to accommodate the Energy: 8.52614 TRX.
LP Token obtained: 17.906768 S-USDT-TRX.
4. How do I stake LP Token to earn five different tokens on Sun.io? (Screenshots needed)
The steps that is involved in this process are listed below;
- I opened my TronLink Wallet to visit sun.io.
- Selected discover from the bottom of the wallet's homepage.
- Visit sun.io.
- On the sun.io homepage, I selected the liquidity mining pool USDT-TRX LP with 4.27% APY.
- Now, I clicked Stake and inputted the amount of the LP token I am staking which is 17.906 USDT-TRX LP.
- Confirm by inputting my password to proceed and it was successful.
My staking- 17.906 USDT-TRX LP
5. Which reward(out of five different rewards) can be withdrawn at any time? How do claim that (indicate that in the screenshot)?
Amongst the five different rewards, 33% Sun reward is available for withdrawal anytime while the remaining consists total undistributed rewards which are distributed by weekly schedule for a period of 24 weeks.
How to Claim the rewards from my Staked LP tokens
- From the sun.io homepage, I selected the Manage button from the USDT-TRX LP I staked into.
- Switched to Claim.
- Sun was available for claim and I clicked the Claim button by the Sun reward.
- Confirm the transaction by supplying my password and clicked done.
- Transaction submitted.
- The Sun reward was received in my TronLink Wallet.
My SUN reward from USDT-TRX LP
6. What is the schedule of unlocking the mining rewards? Indicate the total undistributed/distributed mining rewards in the screenshot?
Knowing that 33% of Sun reward is available for withdrawal any time but the schedule for unlocking for other mining rewards is based on a weekly unlocking schedule over a period of 24 weeks.
Undistributed/distributed mining rewards for my staking in USDT-TRX LP on Sun.io
Accessing my staking in USDT-TRX LP, It is evident that I have the Sun reward available for distribution since it can be withdrawn anytime while the undistributed rewards are; SUN (part), TRX, JST, WIN, BTT. All distributed/undistributed rewards having a value < $0.001 (less than 0.001 USD). Screenshot below shows the undistributed/distributed mining rewards.
Undistributed/distributed rewards
7. Include the real example of your interaction with Justswap and Sun.io as required in this task? Indicate how a "stake"(in Sun.io) function consumes different "Energy & Bandwidth" than "obtaining LP token" (in Justswap)? You should add/remove a small amount of liquidity to obtain/redeem your LP token(as little as 1 USDT worth)? (Screenshots needed)
JustSwap Liquidity Pool
In the quest of providing liquidity on justswap.io/, I supplied 15 TRX + 1.059 USDT by which I obtained 17.906768 S-USDT-TRX (LP Token) from. The transaction consumed 383 bandwidth and 60,902 Energy, meanwhile, 8.52614 TRX was burned to accommodate the Energy required for the transaction.
JustSwap Liquidity Pool
383 Bandwidth and 60,902 Energy consumed
Sun.io Staking into USDT-TRX LP
On sun.io liquidity mining pool, I staked 17.906 USDT-TRX LP into the USDT-TRX LP to earn the liquidity mining rewards that comprises TRX, SUN, JST, WIN, BTT. The staking on sun.io consumed 313 Bandwidth and 89,516 Energy with 12.5321 TRX burned to accommodate the energy required for the transaction. Having the calling in this case to be Stake.
My staking- 17.906 USDT-TRX LP
Sun.io staking- 313 Bandwidth and 89,516 Energy consumed
Comparison of the Bandwidth/Energy consumed by Sun.io staking and obtaining LP token on JustSwap.io
| Resources | Sun.io | Justswap.io |
|---|---|---|
| Action | Staking in LP | Obtaining LP Token |
| Amount | 17.906 USDT-TRX | 17.906768 S-USDT-TRX |
| Bandwidth | 313 Bandwidth | 383 Bandwidth |
| Energy | 89,516 Energy | 60,902 Energy |
| TRX burned to accommodate the required Energy | 12.5321 TRX | 8.52614 TRX |
Observation from the above Data
Considering the data presented above, it is evident that Sun.io staking transaction consumed more Energy than obtaining LP token on JustSwap which is (89,516 > 60,902 Energy) and less Bandwidth for Sun.io staking as compared to obtaining LP token on JustSwap which is (313 < 383 Bandwidth).
8. How do I unstake LP token and claim mining rewards(Sun.io)?
The steps that is involved in this process will be given below;
- Having connected my TronLink wallet with Sun.io/.
- I visited Sun.io from my TronLink wallet dApp.
- Clicked Manage on the USDT-TRX LP and switched to Claim.
- I have a total of 17.906 USDT-TRX LP available to unstake, 0 Sun available for claim and other undistributed rewards.
- Now, I am unstaking the whole 17.906 USDT-TRX LP so I clicked max and proceeded to click the Claim and Unstake button.
- Confirmed the transaction and supplied my password.
17.906 USDT-TRX LP unstaked on Sun.io - 17.906 S-USDT-TRX in TronLink Wallet
The above process completes the unstaking of my LP token and claim mining rewards on sun.io. Sun mining rewards accompanied the process of unstaking my LP token, remember, 33% of SUN mining rewards are available for withdrawal any time. The screenshot below shows the SUN mining rewards received in my TronLink Wallet.
Sun mining reward claimed when I unstaked my LP token
In conclusion, justswap.io/ doesn't only allow users to swap their tokens for another but also allow them to serve as a liquidity provider to obtain LP token thereby earning exchange fees based on the amount of tokens supplied into the liquidity pool. The obtained LP token on justswap.io/ can also be put into effective work by staking it on sun.io/ into the Liquidity mining pool to earn liquidity mining rewards. I'm glad I attended this lecture and was able to explore something new, thanks to professor @sapwood for this wonderful lecture. Thank you all.
Cc: @sapwood
Written by;
@fredquantum
Nice presentation from with real screen shot Examples.
Here for finishing our Trnsaction we need to hold additional TRX for Energy and Bandwidth Needs.
#affable #india
Thanks for the wonderful comment, sir. We can freeze some TRX to obtain Energy and Bandwidth as such, that will reduce the amount of TRX burned during the transaction or rather hold enough TRX for a successful transaction.
Yes agree.
#affable #india
Muy detallada tu explicación, te felicito.
Thanks so much for your kind remarks. Your spared time is highly appreciated. Thank you.