Overview
Sunswap v2 is the second-generation protocol focused on delivering high-performance token swaps with minimal slippage and minimal fees. It combines proven AMM primitives with modern UX, multi-path routing, and tooling for power users. The core goals are to lower barriers to liquidity provision, improve capital efficiency, and integrate with the broader DeFi ecosystem.
Key Features
- Optimized Routing: Multi-path and aggregated routing finds the best price across pools to reduce slippage.
- Concentrated Liquidity: LPs can provide liquidity within custom price ranges, improving capital efficiency.
- Low Fees: Fee tiers that adapt to pool volatility and trading volume to balance incentives for traders and LPs.
- Composable Farms & Vaults: Yield strategies and vaults that auto-compound farming rewards for LPs.
- Developer-Friendly: Well-documented contracts and SDKs for integrations and custom front-ends.
How Sunswap v2 Works
At its core, Sunswap v2 uses paired liquidity pools and an AMM formula to price assets. Traders interact with smart contracts to swap tokens; routing logic splits orders across pools when it improves execution. Liquidity providers deposit token pairs or single-sided positions into concentrated ranges, earning fees and rewards proportional to their deployed liquidity.
The architecture separates swap execution, fee management, and reward distribution, which simplifies audits and upgrading individual modules without breaking composability.
Tokenomics & Incentives
Sunswap v2 may include a native governance token used to:
- Govern protocol parameters (fee tiers, reward schedules).
- Direct liquidity mining programs to bootstrap liquidity.
- Enable fee sharing or buyback-and-burn mechanisms depending on DAO votes.
Incentive design focuses on sustainable yields and aligning long-term LP interests with platform health.
Security & Audits
Security is a priority: Sunswap v2 follows best practices — modular contracts, time-locked administrative actions, and external audits by reputable firms. Users should always verify contract addresses and interact via official interfaces or audited third-party front-ends.
Typical Use Cases
- Traders: Execute large swaps with minimized slippage using routed paths.
- Liquidity Providers: Deploy capital into focused price bands to earn higher fee yields.
- Builders: Integrate Sunswap liquidity and swap primitives into wallets, dashboards, or yield aggregators.
FAQ
Q: Is Sunswap v2 audited?
A: The protocol recommends relying on official audit reports and verifying via their documentation and GitHub.
Q: Can I provide liquidity with a single token?
A: Yes — single-sided positions are supported through internal routing that balances pool exposure.