Sow Sun- Understanding different options of Mining, Schedules, Economy, etc along with "How-to" Tutorial.

in #sowsun4 years ago (edited)

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Background

Decentralized Finance aka DeFi is the latest buzzword and the driving force in today's crypto ecosystem. It has offered a lucrative opportunity to the token holders over the last year or so to earn passive income while catering to the use-case of lending, exchange through AMM-based LP Pool.

The market capitalization in DeFi sector has gone up and the dominance is significant. More than 8 Billion USD is locked in DeFi, and this figure is parabolically growing. So with the smart contract, DeFi, the tokens sitting in the wallet is a thriving economy not just in the context of store-of-value but also with DeFi opportunities, by locking into a contract and earning governance tokens/passive revenue.

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Introduction to Sun.io

Sun.io is a concept, motivation, precisely a social experiment to strengthen the case of the Tron DeFi ecosystem; to make it fair, decentralized, community-driven where it will empower the community to mine SUN token by staking with different options, which can further be utilized as governance token in future.

It will further open up to multiple use-cases of DeFi projects in the Tron ecosystem such as lending, stable coins, insurance, liquidity, etc.

As the name DeFi suggests, its functionalities will be governed by programmable code, fully transparent with no pre-mined tokens. The only way out is "Mining".

Maximum Supply- 19,900,730
Circulating Supply- 1,677,831

SUN is a TRC-20 token on the Tron Blockchain.

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Different Phases & schedule of Mining

Genesis Mining-

  • Genesis mining period was from 02/09/2020n to 16/09/2020 (Ended)
  • Total SUN tokens mined- 1,860,602 (9.34% of the total)

Regular Mining-

  • The first 14 Day schedule- from 16/09/2020 to 30/09/2020- (Running)
    Mining Options: Staked Mining- TRX LP Mining- SUN-TRX LP, JST-TRX LP, USDT-TRX LP

  • The 15-day schedule launched by Huobi Exchange- from 23/09/2020- (Running)
    Mining Options: Staked Mining- HT LP Mining- HT-TRX LP

S NoStaked Mining/LP MiningDaily Mineable SUN
1TRX10000
2SUN/TRX LP49000
3JST/TRX LP39000
4USDT/TRX LP29000
5HT1400
6HT/TRX600
7Total129000

Combining the two schedules, per day 129000 SUN tokens are being mined.

It must be noted that within the schedule the total number of SUN tokens to be mined does not decrease and remain fixed. From one schedule to another it could change.

  • The second 14 Day schedule- to start from 30/09/2020
    Mining Options: Staked Mining- TRX, SUN, JST, USDT, WBTT, USDJ
    LP Mining- SUN/TRX LP, JST/TRX LP, USDT/TRX LP, WBTT-TRX LP, WIN-TRX LP, USDJ-TRX LP
S NoStaked Mining/LP MiningDaily Mineable SUN
1TRX8000
2SUN/TRX LP26000
3JST/TRX LP16000
4USDT/TRX LP14000
5SUN10000
6JST2000
7USDT2000
8WBTT2000
9WBTT/TRX LP10000
10WIN/TRX LP6000
11USDJ2000
12USDJ/TRX LP4000
13Total102000

In the second 14-day Schedule, the total number of SUN tokens that can be mined per day is 102000.

Again within the schedule, the number of tokens/per day to be mined is fixed.

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Different Mining Options & Max total supply

SUN token can only be mined, a trait that follows Bitcoin, which means there is no pre-mined-token, no joint venture capital, etc. It is open-source, decentralized, community-driven, and fair & transparent mining of SUN.

The maximum SUN tokens that can ever be mined is 19,900,730.

Now one can mine SUN token through different mining options which are broadly classified into two categories:

  • Staked Mining
  • LP Token Mining
Staked Mining

Staked mining is simple, just stake your liquid token into the contract to mine SUN token. You can realize it in real-time as soon as you unstake. How much can you mine, depends on the "staked duration" & "stake percentage of the total".

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Example,

Suppose you want to stake 500 TRX and the total TRX staked is 90000 TRX. Per day 10000 SUN tokens are being mined in the 14-day schedule.

If you stake it for one day, then your contribution ratio is (500/90000)x100= 0.55%.

Per day, in the TRX pool, 10000 SUN tokens are being mined, so you will get 0.55% of 10000 SUN= 55 SUN tokens.

Similarly, if you remain staked for a longer period, then your contribution is weighted with "duration & percentage of the total stake" to determine how many SUN tokens you will get.

LP Token mining

LP token mining is a little sophisticated and can be risky too (equally rewarding). In LP mining, there is an LP protocol in which you need to contribute equally to both sides of the pair(in equivalent value), which means the coin worth on both sides needs to be the same as per the LP protocol, then you become a Liquidity Provider. Now you can stake that LP certificate in Sun.io to mine SUN token. Here depending upon the LP pair, the APY could be high/low.

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Here also, your contribution weighted with "duration & percentage of the total LP" will determine how many SUN tokens you will get.

So the amount of SUN reward per day= (Your contribution ratio weighted with duration & percentage stake of the total) x (maximum mineable SUN per day in the specified pool)

Each pool mine different amounts of SUN tokens every day. So please check the table as given above to know which pool is mining how much per day.

At the moment, the highly rewarding LP Pool is SUN-TRX LP with APY 462.87%.

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How to get Started

  • Go to Sun.io & Connect to your TronLink wallet(Extension)
  • Now you can notice different mining pools (staked pool & LP pool). Select the one you are interested in.
    For instance, I will select TRX pool (which is Staked Pool).
Staked Pool (Example, TRX Pool)

Here you will get to know how many tokens are currently staked, and how many SUN tokens are to be mined.

  • To stake in this pool, click on "Select", enter the amount of TRX you want to stake in this contract.
  • Click on "Stake".
  • Sign the transaction by clicking "Accept".(A pop-will appear)
  • You can unstake at any time and claim your SUN tokens.

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LP Pool (Example, USDT/TRX LP Pool)

Here you will get to know how many tokens (USDT-TRX LP) are currently staked, and how many SUN tokens are to be mined.

  • To stake in this pool, click on "Select", enter the amount of USDT/TRX LP you want to stake in this contract.
  • Click on "Approve USDT/TRX LP".
  • Sign the transaction by clicking "Accept".(A pop-up will appear)
  • You can unstake at any time and claim your SUN tokens.

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Similarly, you can stake in other LP & staked mining pool to mine SUN.

I have staked my TRX and USDT/TRX LP Token in Sun.io to mine SUN tokens.

Important- Do not directly deposit to the Sun.io contract, always use the TronLink Wallet to execute any transaction with the contract, otherwise you will lose your token.

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Analysis

Since 2017-18, all most all coins have visited their low, and now in a consolidation phase, comfortably above the support level. Bitcoin has already formed a double bottom. From here on, the probability of a bull market is more than a bear market.

That said, over the last one year or so, the DeFi market is the driving force in the crypto ecosystem. So SUN is a strong case in this analysis. The risk is involved everywhere, but it is the risk that caters to the reward, a wise player looks at the risk-reward ratio and the underlying sentiment.

So those who are having their liquid coins and have long term vision or target, they can generate passive income with this. For instance, you have liquid TRX sitting idle in your wallet, stake it in the contract of Sun.io, and mine SUN tokens. Similarly, you can go more sophisticated and contribute to both sides of an exchange pair in Justswap and then stake your LP certificate in Sun.io to mine SUN tokens.

The beauty is that at any moment you can exit and realize your mined SUN tokens in real-time.

If you check at the total staked value in LP Pool, then currently it stands at 359,850,186 USD. That is 359 million USD, now staked in this project. This figure is constantly growing, as 5 days ago the same was roughly 303 million USD and now is 359 million USD.

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Source

Further, if the APY is taken into account, then in LP Pool, the APY is as high as 462%, which is massive.

In general, in an LP Pool if both sides lose value(in a bear market), then you lose, but considering the present scenario, the probability to go up is more than the probability to go down(not financial advice though), so even if the risk factor is considered, the use-case of AMM(Automated Market Maker) exchange will always generate passive income for the Liquidity Providers and now by staking LP Token in Sun.io, you can mine SUN token which has monetary value, listed in major exchanges including Binance.

The Tron Blockchain is well known for its cost-effectiveness in terms of Blockchain fees. Whether you transfer TRON, USDT(TRC-20), or any other similar coin of the Tron family, the cost is much lower(or no fees) when you compare it with USDT(ERC-20) while dealing with exchanges. So not just it is a suitable ecosystem of DeFi for the whales but also for the common average stakeholders who always look for low Blockchain fees. And Tron ecosystem has been cost-effective since its inception.

So definitely it's a win-win case for everyone.

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Conclusion

The ongoing mining of SUN is an interesting phase for Tron DeFi and an opportunity for all who have interests in DeFi. Even if someone is not looking forward to its governance, they can still take it as another opportunity to utilize their tokens to the optimal effect to generate monetary rewards in the form of SUN tokens.

DeFi boom is here to stay and it's that financial use-case which people used to be reluctant or defiant once but now with programmable code, smart contracts things have gone trustless and a genuine opportunity for all.

SUN has started to rise in altitude and it will be interesting to see when all the SUN tokens will be mined. Those who mine early will gain more, as the mining might get tougher from the first 14-day schedule to the next and so on.

Being a blogger in Steem Blockchain, I will be happy to see a pair like STEEM/TRX or STEEM/SUN. That will make things interoperable and that will further expand the horizon, investment opportunity.

Thank you.

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References:-

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Cc:-
@steemitblog
@steemcurator01
@steemcurator02

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Unless otherwise stated, all the images, infographics, charts, tables, etc(if any) are my original works.

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DISCLAIMER

This is not financial advice, nor a guarantee or promise in regards to any result that may be obtained from using the above content. So it should not be considered as financial and/or investment advice. No person should make any kind of financial decision without first consulting their financial adviser and/or conducting their research and due diligence.

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Hi @sapwood
This is an outstanding article regarding Sun, Liquidity Pools and JustSwap. I hope you win.

6C92C9AC-51EC-4911-A40B-0D40E8FF3258.jpeg

#steemitblog
#steemcurator01
@steemiblog
@steemcurator01
@steemcurator02

Thank you so much Sir.

It means a lot.

Steem on.

@sapwood wonderfully explained, this post is very helpful, I get lot of information 👍😊❤️

Thank you.

You are most welcome my dear friend 😊

Congratulations you are one of the winners of the Sow Your SUN Challenge...

Thank you for taking part

The Steemit Team

Thank you so much for this lovely gift.

Steem on.

Hi @souravpatel

Please don't flood the chain with such comments. This is not the way to restore confidence either.

That day you accepted that "you are feeling sorry for running an alternate account". Acceptance is a good thing, but it does not become a right either.

Please focus on your activities and tasks which interest you and please don't flood the chain with such repetitive comments every day, everywhere.

But I didn't get any reward from @steemcurator01

Dear @souravpatel

Getting an upvote is a privilege, not a right, let that sink in.

The curators have a certain framework, rules, and guidelines. You have violated that, and you are also feeling sorry for that after realizing what went wrong.

Now your approach should be corrective, not something like bargaining, if you really do well for a period of time, they might visit you again. But daily putting comments, tagging steemcurator01 everywhere itself sounds like an act of spam.

Please do away from tagging 01, that's really annoying, and trust me that wastes a lot of time of a curator.

Thanks

Ok sir from now i will not commenting as related to 01 but please you tell to 01 sir that they visit my diary post.
Its a humble request

Hi @souravpatel,

I think we need to discuss this in detail. I will try to answer all your queries. let's not discuss here.

Please contact me on my discord: neeraj kumar#2038

Ok we will discuss on discord btw thanks.

If you keep spamming your messages you will be banned from all our challenges.

cc @neerajkr03 @rishabh99946 @sapwood

Sorry but please atleast visit to my diary post.
Its a humble request...

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