SunSwap

SunSwap V3 - Concentrated Liquidity

SunSwap

Ranges and fee tiers

SunSwap V3 launched on 28 June 2023. It is still a sun swap pool on sun io, built from the V2 constant-product curve, with one change that matters: you choose the price range where your liquidity sits. Trades inside that range share fees in proportion to the liquidity that was there. A narrower range puts the same capital to work harder. A wider range covers more prices and earns less per trade. If the market leaves your range, that position stops earning fees until the price comes back.

V3 also lets the pool creator pick a fee tier instead of one fee for every pair. SUN.io documents four tiers. 0.01% is for large stablecoin flow. 0.05% is for tokens with lower volatility. 0.3% is for most tokens. 1% is for tokens with wider swings. A sunswap of a volatile meme token and a sunswap of two stablecoins should not pay the same fee. V3 is how those trades get different pools.

V3 did not replace V2. Full-range V2 pools still exist, and they are where a lot of TRON pairs, including liquidity that graduates from SunPump, sit. V4 later added native TRX and a cheaper architecture. For a trader, V3 is one possible route. For a liquidity provider, V3 is a range you have to tend.

How a V3 position differs

  1. Pick the pair and a fee tier that matches how much the price moves.
  2. Set a lower price and an upper price. The range should cover the price you expect, or you will not earn.
  3. Deposit and sign. Fees in range accrue to your position.
  4. Move or widen the range if the price leaves it. An out-of-range position earns no trading fees.

Frequently asked questions

What is SunSwap V3?

SunSwap V3 is concentrated liquidity on TRON, launched 28 June 2023. Liquidity providers choose a price range and one of four fee tiers: 0.01%, 0.05%, 0.3%, or 1%.

Does V3 earn fees all the time?

No. Fees are paid only while trades happen inside your range. Outside that range the position earns no trading fees until the price returns.

Which fee tier should a stablecoin use?

SUN.io points the 0.01% tier at large stablecoin swaps and the 0.05% tier at lower-volatility tokens. Most other tokens use 0.3%, and high-volatility tokens use 1%.