Overview
Sunswap v2 is the second major iteration of an AMM designed for the Solana ecosystem. It combines concentrated liquidity concepts with multi-curve pools and permissionless pool creation. The protocol is optimized for low-latency trades and predictable gas costs, enabling both retail and institutional traders to swap assets at scale.
Key Features
- Low fees: Engineered to keep on-chain fees minimal while preserving sustainable yield for liquidity providers.
- Multi-curve pools: Support for constant product and stable-curve pools to optimize slippage for both volatile and pegged assets.
- Concentrated liquidity: LPs can specify price ranges to improve capital efficiency and earn higher fees on targeted ranges.
- Permissionless pools: Anyone can create a pool with flexible parameters and incentivize liquidity through farm programs.
- Composability: Integrates easily with wallets, aggregators, and DEX routers through a clear contract ABI.
How Sunswap v2 Works
Trades are routed through the on-chain router which evaluates available pools and price impact. For stable pairs (e.g., USDC/USDT), the stable curve minimizes slippage; for volatile pairs, concentrated liquidity enables tighter spreads. LP positions are represented as on-chain NFTs reflecting the chosen price range and share of the pool.
Tokenomics & Incentives
Sunswap v2 introduces a governance token (SUN) used for fee rebates, governance votes, and liquidity mining. A portion of swap fees is distributed to active LPs while another portion is used for protocol treasury growth and ecosystem grants. Incentive programs periodically boost rewards for specific pools to bootstrap liquidity.
Getting Started — Quick Swap Guide
- Connect a Solana-compatible wallet (e.g., Phantom, Solflare).
- Select the token pair and desired pool type (stable or variable).
- Enter the amount to swap; the UI displays estimated slippage and price impact.
- Approve the transaction in your wallet and confirm the swap on-chain.
For LPs: add liquidity by choosing a price range (for concentrated pools) or deposit into a balanced pool for broader exposure.
Security & Audits
Sunswap v2 prioritizes security — smart contracts are audited by reputable third parties and contracts are immutable after governance-set timelocks. Users are encouraged to verify contract addresses and use official UI links to avoid phishing. Bug bounty programs reward responsible disclosures.
FAQ
Q: Is Sunswap v2 compatible with v1 liquidity?
A: Migration tools are provided to move positions to v2 where applicable.
Q: How are governance decisions made?
A: SUN token holders may propose and vote on upgrades, parameter changes, and treasury allocations.