SunSwap

SunSwap is the leading decentralized exchange (DEX) on TRON, providing the core automated market maker (AMM) infrastructure for token swaps and liquidity provision. Governed by SUN DAO, the protocol supports both V2 constant-product pools and V3 concentrated liquidity, enabling non-custodial trading with minimal price impact and high capital efficiency for liquidity providers.

Domain: sun.io

Verify the domain

Only access SunSwap via sun.io. Do not use links from third-party sites, search ads, or Telegram messages. Phishing sites mimic SunSwap’s interface to steal approvals.

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Core Concepts

Automated Market Maker (AMM)

SunSwap does not use an order book. Instead, trades execute against liquidity pools — smart contracts that hold reserves of two tokens. The exchange rate is determined algorithmically by the ratio of tokens in the pool (the constant-product formula: x × y = k).

This means:

• There are no buyers or sellers on the other side of your trade — the contract fills it
• Large trades relative to pool size incur price impact (you receive a worse rate)
• Liquidity providers (LPs) supply the tokens in each pool and earn trading fees

WTRX

TRX is not a TRC-20 token — it is the native currency of TRON. Smart contracts (including SunSwap) cannot directly hold TRX in the same way they hold TRC-20 tokens. WTRX (Wrapped TRX) is a TRC-20 token pegged 1:1 to TRX that allows TRX to participate in AMM pools.

When you swap TRX on SunSwap, it is automatically wrapped to WTRX before the swap, and unwrapped back to TRX on receipt. This is transparent — you do not need to manually wrap or unwrap.

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Swapping Tokens

1. Open sun.io and click Connect Wallet. Approve the connection in TronLink.
2. Navigate to the Swap interface (default landing page on SunSwap V2/V3).
3. In the “From” field, select the token you are selling. In the “To” field, select the token you are buying.
4. Enter the amount in either field. SunSwap calculates the output amount automatically based on current pool prices.
5. Review the swap details panel:
   • Price impact: How much your trade moves the pool price. Under 1% is typical for liquid pairs. Above 5% means the pool is thin — reconsider or split the trade.
   • Minimum received: The worst-case output after slippage tolerance.
   • Route: The swap path. SunSwap may route through intermediate tokens for better rates.
6. Click Swap. If this is your first interaction with the token you are selling, an Approve transaction appears first — confirm it, then confirm the swap.

Slippage Tolerance

Slippage tolerance is the maximum price movement you will accept between submitting and executing your transaction. The default (typically 0.5%) works for most trades. If a transaction fails with a “slippage exceeded” error, increase the tolerance slightly.

High slippage on low-liquidity pairs

Setting slippage tolerance above 5% on unknown tokens creates a front-running window. Bots can sandwich your transaction — buying before you and selling after — capturing value at your expense. Keep slippage low and use liquid pairs.

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Providing Liquidity (V2)

Liquidity providers deposit equal value of two tokens into a pool. In return, they receive LP tokens representing their share of the pool. LP holders earn a portion of the 0.3% trading fee collected on every swap through that pool.

Adding Liquidity

1. Navigate to Pool → Add Liquidity on sun.io.
2. Select the two tokens you want to deposit (e.g., USDT / TRX).
3. Enter the amount for one token. SunSwap calculates the required amount of the second token automatically to maintain the current pool ratio.
4. Review the estimated LP tokens you will receive and your share of the pool.
5. Approve each token (if not already approved) and confirm the Add Liquidity transaction.
6. LP tokens appear in your wallet. They represent your position in the pool.

Removing Liquidity

1. Navigate to Pool → My Positions.
2. Select the pool position you want to exit.
3. Enter the percentage (or amount of LP tokens) you want to withdraw.
4. Click Remove and confirm the transaction. Your share of both tokens returns to your wallet.

Impermanent Loss

When the price ratio between the two tokens in your pool changes, you receive a different ratio of tokens on withdrawal than you deposited. The value of your withdrawn tokens may be less than if you had simply held both assets separately. This difference is called impermanent loss.

Impermanent loss increases with price divergence. For volatile pairs, trading fees may not compensate for it. Stablecoin-to-stablecoin pools (e.g., USDT/USDD) have minimal impermanent loss risk.

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Concentrated Liquidity (V3)

SunSwap V3 allows liquidity providers to specify a price range for their liquidity. Liquidity is only active (and earning fees) when the market price is within your specified range. This allows:

• Higher capital efficiency — concentrated liquidity earns more fees per dollar deployed
• More control — choose the price range where you expect trading to occur
• Higher active management — if price moves outside your range, your liquidity stops earning

V3 is appropriate for experienced users who understand the mechanics. V2 is simpler and suitable for passive liquidity provision.

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SUN Token

SUN is the governance and incentive token of the SunSwap ecosystem. It serves several functions:

Function	Description
Liquidity mining	Some pools offer additional SUN rewards to LPs on top of trading fees
Governance	SUN holders vote on protocol upgrades and new pool incentives
sSUN (staked SUN)	Locking SUN generates sSUN, which may provide additional platform benefits

SUN rewards are distributed continuously to eligible LP positions. Check your position on sun.io for any claimable rewards.

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Fee Structure

Pool type	Fee tier	Best for
V2 standard	0.3% per swap	Most token pairs
V3 stable	0.01% per swap	Stablecoin / pegged pairs
V3 standard	0.05% or 0.3%	Standard volatile pairs
V3 exotic	1.0% per swap	Low-liquidity or high-volatility pairs

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Risk Summary

Smart contract risk

SunSwap is audited but DeFi protocols carry inherent contract risk. Only deploy capital you can afford to have locked.

Impermanent loss

Price divergence between pool tokens erodes LP value relative to simply holding. Indicative figures for a V2 pool: a 2× price change between assets produces ~5.7% IL; a 4× change produces ~20%; a 10× change produces ~42%. Trading fees may not compensate for IL in volatile pairs. Stablecoin pairs (USDT/USDD) have near-zero IL.

Price impact on thin pools

New or low-liquidity token pools can have severe price impact on even small trades. Always check the impact percentage before confirming.

Token legitimacy

Anyone can create a SunSwap pool for any TRC-20 token. A pool existing does not imply the token is legitimate. Verify token contract addresses independently before trading.