🌞 What is the SUN protocol?

SUN Protocol is the first and most important decentralized finance (DeFi) platform in the TRON ecosystem. It was launched in 2020, and the founder is—no surprise here, Justin Sun. The project name 'SUN' itself carries a strong personal label.

Initially positioned as 'Curve + Yearn + SUSHI' on TRON:

  • Engage in liquidity mining (liquidity provision rewards)

  • Provide stablecoin exchange (like Curve)

  • Launch yield aggregation products (like Yearn)

  • Later supports governance voting, community proposals, staking, and other features

It has now developed into a comprehensive platform integrating stablecoin exchange, liquidity mining, and community governance.

💡 Main functional modules of SUN:

You can think of the SUN protocol as a 'central bank' or 'financial hub' within the TRON ecosystem.

1. Swap trading (stablecoin exchange)

Similar to Curve, allows users to exchange stablecoins like USDT, USDJ, TUSD, etc. on the TRON chain with very low slippage.

2. Liquidity mining

Users provide liquidity, such as USDT/USDC, TRX/USDT pools, take LP tokens to mine, and produce SUN tokens.

3. Staking & Locking

Users can lock SUN tokens to earn yields and participate in governance.

4. Governance system

Vote with veSUN (locked SUN for voting rights) to determine the direction of the protocol, such as adding new pools or changing parameters, which is somewhat similar to Curve's veCRV mechanism.

🪙 SUN token mechanism

Usage:

  1. Governance rights: The most important use, used for voting to determine the future of the protocol.

  2. Value capture: The fee income generated by the protocol, part of which will be used for repurchasing and burning SUN, or distributed to users who stake SUN, thereby empowering the tokens.

  3. Incentives: Distributed as rewards to liquidity providers.

Important event: Token split (Redenomination)

This is a key point. The initial SUN token (old SUN) had a small total supply and a high price. To lower the participation threshold and increase the application scenarios of the token, the official implemented a 1:1000 split plan.

Old SUN was exchanged for new SUN at a ratio of 1:1000.

What is currently traded and used in the market is the new SUN.

🚀 Highlights & Upgrade Path

  • When it launched in 2020, paired with the popularity of TRON and Justin Sun's personal influence, SUN saw a surge.

  • It was later upgraded to SUN v2, merging with another TRON DeFi project JustSwap, integrating the core products together.

  • The DeFi applications of the TRON ecosystem (JustLend, JustStable, SUN) gradually interconnected, forming its own small ecosystem.

😵 What happened later?

Popularity rapidly declined due to the following reasons:

  • The overall user base and funds in TRON DeFi are not large;

  • Similar gameplay, lack of innovation;

  • SUN itself, as a governance token, did not keep up with the scenarios, and the price continued to decline.

Currently, SUN is still operational but has low voice in the community, becoming an 'old project that is still alive but no one plays with'.

✅ Summary in one sentence

SUN is a comprehensive DeFi protocol on the TRON platform led by Justin Sun. It was initially positioned as 'Curve + Yearn on TRON' with stablecoin exchange, mining, staking, and governance features. However, its popularity has since declined, and its activity is currently low, serving more as 'infrastructure' for the TRON ecosystem.

$SUN