What is Sunswap?SunSwap is an exchange protocol on TRON for exchanges between TRC20 tokens.Conversion can happen easily between any 2 TRC20 tokens based on system price. All trading fees collected will directly go to liquidity providers of the protocol, rather than the protocol itself.
How does it work?SunSwap is a protocol for automated liquidity provision.There’s no need for making offers or matching orders, and there’s no intervention of any centralized institutions or facilities in transaction.
Managed by smart contracts, each transaction pool supports token exchanges, adding liquidity etc.,and essentially maintains the function x*y=k to ensure the legitimacy of transactions.
Price DeterminationPrice is determined by the number of tokens in each pool.The smart contract maintains a constant function: x*y=k, in which x = token1, y = token2, k = a constant number.
Each swap takes place by replacing some of the tokens with a certain number of the other token. As k remains unchanged, balances of the tokens will be updated accordingly, which leads to changes in prices.
What tokens are supported for swap?Both conversion between two TRC20 tokens and between TRX and TRC20 token are supported.