Sunny is one of the hottest topics in the DeFi ecosystem. On 10th September 2021, the price of the SUNNY token hit a high of 0.1932. It went up over 10 times in a matter of days, earning over 1000% profits for its investors!
So what exactly is the Sunny protocol and why is it trending so much?
Sunny is a DeFi yield aggregator built on the Solana blockchain.
The Sunny Aggregator is enjoying the limelight as the first of its kind on Solana while this innovative blockchain is setting new records in the cryptocurrency universe.
Investor interest peaked in the Solana ecosystem during the first week of September 2021 and the price of SOL shot up from about $30 in early August to about $214 by September 9th.
With a TVL (total value locked) rise from $150M in March to an astounding $11.32B in under six months, Solana has seen an unbelievable growth spurt. Solana can overtake the Binance Smart Chain in no time if its growth phase continues at this pace. The BSC currently has a TVL of 16.21B. Solana may even take the crown from Ethereum and emerge the victor in the battle of blockchains.
Beyond its ridiculously low gas fees and lightning-fast transactions, Solana’s growth is attributed to its yield farms such as Raydium and Saber with their automated market makers (AMMs). Sunny takes this to the next level with its role as a yield aggregator.
Check out our step-by-step guide to buying SUNNY tokens. Dive into the article and find out how to use the Sunny Aggregator to stake your funds and reap more yield.
Let’s get started!
What is Sunny Aggregator?
Sunny is a composable DeFi yield aggregator built on the Solana platform.
You can deposit your funds (in the form of Saber LP tokens) on the Sunny network and earn rewards for these deposits. This is basically known as yield farming. You get both Sunny and Saber tokens as rewards. There are multiple pools on this network with new ones being launched frequently.
Read more: What is Yield Farming in DeFi?
Now let’s try to understand how Sunny is different from the other yield farms on Solana and what exactly the terms ‘composable’ and ‘yield aggregator’ mean.
Understanding Sunny’s Role as Yield Aggregator
Considering that there are many popular yield farms on the Solana network, such as Raydium and Saber, it becomes difficult for the farmers to find the best farms and manage multiple yield farms across so many different interfaces.
In most cases, you need to periodically claim your rewards and sell them for profit or add them back into the farm for compounding. This is not only time-consuming but also costs a gas fee every time you do this.
Yield aggregators help streamline this whole process and they help improve your yield in many ways. They enable you to discover new farms across various DeFi protocols and enter them easily. Additionally, they automatically compound your farmed tokens.
The only thing you need to concern yourself with is the depositing into the farms and finally the withdrawal of your funds from it. Everything else in-between is handled by the yield aggregator.
Sunny is a ‘Composable’
As a cross-chain protocol, composability is Sunny’s core feature. Composability refers to the interoperability of DeFi protocols – how various DeFi applications connect and interact with each other. Sunny utilizes Solana’s features for this.
Yield aggregators on Ethereum, such as Yearn Finance, offer composable building blocks for various DeFi projects. Sunny aims to replicate this success model by launching the first composable yield aggregator on Solana.
The Ethereum protocol Alchemix uses Yearn Finance’s composable tokens to offer you instant loans that repay themselves. Another DeFi protocol, Cream Finance uses Yearn Finance’s yCRV as collateral. Similarly, Sunny Aggregator offers yield aggregator composability by creating a platform for permissionless, composable DeFi on the Solana blockchain.
Solana has a unique single-sharded design feature which makes it the best blockchain for composability between various applications in the DeFi ecosystem.
Ethereum’s Polygon or ETH 2.0 uses multi-sharded scalability solutions that can separate and isolate DeFi applications into separate shards. This is a major deterrent to interoperability between these applications. Solana, on the other hand, has a major advantage here – all transactions on Solana happen on a single shard.
SUNNY Tokenomics
As a decentralized protocol, the Sunny Aggregator is governed by the Sunny DAO. “SUNNY” is the governance token. The holders of the SUNNY token form a decentralized autonomous organization (DAO) and together they decide what is to be done with the funds in the protocol.
If you own SUNNY tokens, then you have the option to vote in this democracy and help make decisions regarding the future of this protocol.
Currently, for staking and farming on Sunny, you need Saber LP tokens. When you put your funds into a Sunny pool, you get back agTokens. This represents your share of the pool.
Sunny’s agTokens is a composability mechanism. These agTokens have Solana SPL Token standard, so they can be used by various other protocols on the Solana network. These are quite similar to yTokens in Yearn Finance.
The supply of SUNNY is capped at 19,884,700,000 coins (just under 20 billion). The fixed token supply arrests inflation.
In less than a month of its launch, SUNNY boasts a fully diluted market cap of $2,642,875,923. As investors realized the existence of this little gem on the Solana landscape, the token price shot from $0.009597 to $0.1932 in less than a week. As of 12/9/21, SUNNY was trading at $0.115. That’s still a whopping 1139.17% from its low of $0.00959.
Sunny plans to regularly burn some of its token supply to make it an even rarer commodity, and push up its value considerably. All the transactions on Sunny are charged a minor fee which goes back into the project’s development fund. A part of this fund will be used by the DAO to buy back SUNNY tokens and burn them.
How to Use Sunny Aggregator
To get started, go to https://app.sunny.ag/
The first step is to connect your wallet.
Once you click on ‘Connect Wallet’, you get options to connect Solana compatible wallets such as Phantom and Sollet. You can also connect hardware wallets such as Ledger.
Read more: How to Download and Install Phantom Wallet
Once you connect a wallet, the first thing you get to see is the rewards panel. Yield farmers on various protocols like checking in to see how their farms are doing. The moment you connect your wallet to Sunny, you are greeted with all your yields that are ready for harvesting. Now, that’s a pleasant welcome indeed!
You are rewarded in the form of both SABER and SUNNY tokens for providing liquidity on this platform.
As of 12th September 2021, there are 15 liquidity pools on Sunny Aggregator. All these pools require you to provide liquidity using Saber LP tokens.
How to Get SABER LP Tokens for SUNNY Liquidity Pools
To obtain Saber LP tokens, you need to use the Saber app.
When you click on the ‘connect wallet’ button, you are first given a reminder that you need a Solana compatible wallet.
If you have one, then click on ‘continue’.
Now you get a pop-up with wallet options.
I am choosing a Phantom wallet. Click on whichever is your choice.
Unlock your wallet using your password.
Now you’ll be asked to allow the Saber app to connect. Click on ‘Connect’.
Now you are ready to use Saber and create the LP tokens required for the Sunny aggregator.
How to Add Liquidity to Sunny Pools Using Saber LP Tokens
Even if your ultimate aim is to stake the LP tokens in a specific Sunny pool, you first need to go to the associated Saber pool, to create the required LP tokens. So let’s get started with that process.
1. Click on ‘Pools’ in the top menu.
2. Choose a pool from the given list:
An easier way is to choose the pool directly from the Sunny aggregator itself. For example, let’s take the Saber wFTT-FTT pool.
3. To get the required LP tokens for this pool, you should click on the link in the paragraph (marked in red box) ‘providing liquidity on Saber using their app’. Each pool has a similar link that leads to the correct for creating the required LP tokens.
4. Once you click on this link, you are redirected to the page for creating wFTT-FTT liquidity pool tokens in the Saber app.
5. Once you enter the required amounts, you will be able to see a blue ‘Deposit’ button. Click on it.
6. When you click ‘Deposit’ you will be asked to ‘Confirm Deposit’ once more. Your connected wallet will pop up asking for confirmation of the transaction.
7. Now you will be able to see how many unstaked wFTT-FTT LP tokens are available in Saber. You can stake these directly in Saber pools or head over to Sunny to get even better APRs and Sunny tokens as rewards.
8. The next step is to head back to your Sunny app page and open the pool you created the LP tokens for.
9. You will be able to view the LP tokens as balance (marked in red on the below image). Click on the link of the balance amount to enter the full amount as a deposit. You can edit the amount as desired. ( I have marked the amounts as XXXX…)
10. Once the amount is entered, you get a yellow button to ‘Deposit Saber LP’.
11. Once you click ‘Deposit Saber LP’ you will get a wallet pop-up asking to confirm the transaction.
12. Once you do so, your LP tokens get staked in this pool. You can see a small pop-up notification (to the left bottom of the screen) regarding the transaction. Click on that if you wish to see the transaction details.
You can see the deposited amount in dollar value in the top portion of the box (marked in the red box in the image).
The rewards tab will show you how much reward is being generated in this pool.
Click on ‘withdraw’ to take out your staked funds at any time you desire.
Before You Go…
Unlike most other DeFi tokens, SUNNY tokens did not have an ICO. These tokens are currently available for purchase on certain exchanges. The only other way to get SUNNY tokens is through yield farming on the Sunny Aggregator platform.
Considering that Solana is currently the cheapest and fastest blockchain out there, there is no doubt that Solana protocols get an added advantage. Solana is providing stiff competition to the Binance Smart Chain and new protocols seem to prefer launching on this network.
As more and more yield farms and other DeFi protocols make their way into this exciting new ecosystem, the Sunny DeFi yield aggregator is ready to connect with these money legos and build a whole new financial kingdom.