Crypto Academy Week 15 - Homework Post for @sapwood
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Introduction
Sun.io is a decentralized platform built on the Tron network, which offers the services of liquidity mining with contribution to the liquidity pool. This platform offers a number of rewards during the liquidity mining process.
How to connect my TronLink Wallet to Sun.io
Open the TronLink Pro app. I am using the application for Android. Select "Discover".
Select "SUN". You can manually type in the url https://sun.io/
Select the "double bar" at the top right corner.
The wallet address is displayed already. This is an advantage of using TronLink Pro. It automatically connects the wallet to any dApp that is opened using the application.
Mining Pools offered by Sun.io
Sun.io offers a number of liquidity mining pools. There are listed below as follows:
| Liquidity Mining Pool | APY |
|---|---|
| USDT-TRX | 4.32% |
| USDJ-TRX | 5.9% |
| TUSD-TRX | 18.32% |
| SUNOLD-TRX | 35.63% |
| WBTT-TRX | 6.08% |
| JST-TRX | 5.61% |
| BTC-TRX | 5.7% |
| ETH-TRX | 3.91% |
| WIN-TRX | 7.74% |
From the table, it is observed that SUNOLD-TRX LP has the highest APY with a value of 35.63%.
The rewards gotten by staking LP tokens are as follows:
- TRX
- JST
- WIN
- SUNOLD
- BIT
- BTCST (this token was recently added to the reward pool)
How to obtain LP Tokens by adding Liquidity to JustSwap.
In the "Discovery" tab of your TronLink wallet, select JustSwap. You can also type in the url manually. https://justswap.io/
Select "Pool" tab.
Select "Add Liquidity".
Click on "Select a token".
A sub-menu appears. I selected USDT.
Inputting an amount of trx would give the corresponding amount of USDT, and vice versa. I inputted 0.1USDT, putting into consideration the large amount of trx that would be burned as energy for this entire exercise because I don't have enough trx.
A pop-up appears. Approving USDT transaction.
After USDT has been approved, another pop-up appears. Select "Confirm Supply".
Select "Confirm".
Enter password.
Confirming
Liquidity successfully added. Select "close"
I received a total of 1.6775 USDT-TRX LP tokens for supplying 0.1001 USDT and 1.4025 TRX. This can be viewed in JustSwap and my Tron wallet.
JustSwap
Tron wallet
How to stake LP tokens to earn 5 different tokens as rewards on Sun.io
Go to sun.io and select the "double bar" at the top right corner of the homepage.
Select "Century Mining".
Select the pair you wish to stake (USDT-TRX in my case) and click "select"
Approval needed.
Select "Confirm"
Type in password and select "Done"
Smart contract approved.
Input amount of tokens you wish to stake. I selected MAX inorder to stake all my acquired tokens.
Confirm the transaction.
Transaction approved.
How to receive "Available to Claim" Reward
Out of the six rewards that are given for contribution to the liquidity pool, only a fraction of one is readily claimable. 33% of the SUN rewards are available to be claimed at any time.
The following steps are taken to claim SUN rewards:
Under Liquidity Mining, locate USDT-TRX LP and select "Manage".
Go to "Claim" tab.
Select "Claim".
Confirm transaction.
Schedule for Unlocking Mining Rewards
Mining regards are categorized under two contexts; Available to Claim and Total Undistributed
The rewards under "Total Undistributed" are unlocked every week over a total span of 24 weeks.
The rewards under "Available to Claim" consists of 33% of SUN rewards that have been mined. The percentage that remains would follow the schedule for the undistributed rewards
How to Unstake LP Tokens and Obtain Mining Rewards
Under the "Claim" tab, Input amount of tokens you wish to unstake and select "Claim and Unstake". I selected MAX because I wish to unstake all my tokens.
Confirm transaction.
Input password and select "Done"
Transaction approved. All my tokens has been unstaked. If I had any rewards, they would be claimed in the process too.
Comparison between Resources utilized for Staking in Sun.io and Obtaining LP tokens from just swap.
The screenshots above displays resources utilized for obtaining LP tokens from JustSwap, and resources utilized for Staking in Sun.io respectively.
From the illustrations, it is observed that obtaining LP tokens consumed more bandwidth, but less energy (and TRX burned) than staking in sun.io. The details are below:
| Action | Bandwidth | Energy | TRX burned as Energy |
|---|---|---|---|
| Obtaining LP Tokens | 382 | 60,902 | 8.52628 TRX |
| Staking in Sun.io | 313 | 89,516 | 12.53224 TRX |
Conclusion
With the help of this lesson and homeworks task, I have learned yet another important aspect of blockchain technology and decentralized applications.
Liquidity mining is a very good method of passive earning using cryptocurrency and I believe that with time, cryptocurrencies and decentralized technology would replace certain aspects of finance.
Special thanks to @sapwood.