Sunny Token (SUNNY) represents a share in Sunny Pool. Impact investors can deposit stablecoins into Sunny Pool, which will be used to fund solar PV projects and deposit liquidity in yield-earning DeFi protocols. Each impact investor invested in Sunny Pool receives SUNNY equivalent to their share of the pool. The SUNNY price is calculated based on the valuation formula.
Sunny Token returns are generated by tokenized loans and the liquidity provided to DeFi protocols.
In addition, SUNNY holders have the opportunity to stake them in SI Pool Vaults and receive higher APY through SI rewards.
Sunny Token has the following characteristics:
There are no dividend distributions. All returns flow into Sunny Pool, thereby increasing the SUNNY price.
Sunny Token price is calculated based on the valuation formula.
There is no maximum supply of Sunny Token. New Sunny Tokens are minted for every new deposit and burned for every withdrawal of stablecoins.
The market price can vary from the internal Sunny Token price.
Sunny Token represents a share of Sunny Pool. Therefore, the value of Sunny Token depends on the valuation of Sunny Pool.
Due to the available Liquidity Reserve, there is a maximum number of Sunny Tokens that investors are able to redeem. The following formula is used to calculate the value of the pool, the value of a share, and the maximum number of redeemable tokens.
In future versions of Sunny Pool, impact investors will be able to redeem tokens even if the liquidity reserve is exhausted (see Roadmap).
In the next sections, we will go through some practical examples of buying and redeeming Sunny Tokens.
Impact investors are able to purchase Sunny Tokens directly through the Sunny Pool. The pool share value is based on the Sunny Pool valuation. A deposit fee may apply.
100 investors have invested $1,400 each in Sunny Pool, and there have been 0 projects implemented. Alice would like to buy five shares of Sunny Pool.
Liquidity Reserve: 100 * $1,400 = $140,000Sunny Token Supply: 100 Sunny TokensInvested in Projects: $0Projects Redemption Payments: $0Value of Sunny Pool: $140,000 + 0 - 0 = $140,000Value of Sunny Token: $140,000/100 = $1,400
Alice pays $7,000 (5 * $1,400) to receive five Sunny Tokens. There will be $7,000 added to the Liquidity Reserve. In total, five new Sunny Tokens are minted.
Bob wants to invest $100 in Sunny Pool after Alice (see Example 1).
Liquidity Reserve: $140,000 + $7,000 = $147,000Sunny Token Supply: 105 Sunny TokensInvested in Projects: $0Projects Redemption Payments: $0Value of Sunny Pool: $147,000 + $0 - $0 = $147,000Value of Sunny Token: $147,000/105 SUNNY = $1,400
Bob receives 0.0714285714 SUNNY ($100/$1,400) for his $100 investment.
In total, three projects with an investment capital of $15,000 are being implemented. So far, no redemption payments have been made by borrowers. Bob would like to buy two Sunny Tokens.
Liquidity Reserve: $147,100 - $15,000 = $132,100Sunny Token Supply: 105.0714285714 Sunny TokensInvested in Projects: $15,000Projects Redemption Payments: $0Value of Sunny Pool: $132,100 + $15,000 - $0 = $147,100Value of Sunny Token: $147,100/105.0714285714 Sunny Tokens = $1,400
To buy three shares, Bob has to pay $4,200.
All three projects in Example 3 returned payments totalling $11,000. $1,000 of the payments is interest and $10,000 are redemption payments. Alice wants to buy one more Token.
Liquidity Reserve: $132,100 + $4,200 = $136,300Sunny Token Supply: 108.0714285714 Sunny TokensInvested in Projects: $15,000Projects Redemption Payments: $10,000Interest payment: $1,000Value of Sunny Pool: $147,300 + $15,000 - $10,000 = $152,300Value of Sunny Token: $152,300/108.0714285714 Sunny Tokens = $1,409.25313946
To buy one Sunny Token, Alice has to pay $1,409.25
Sunny Pool's Liquidity Reserve is limited. In the event that there is not enough liquidity in the Liquidity Reserve, token holders may trade Sunny Tokens on the secondary market. The maximum amount of Sunny Tokens that can be redeemed is determined by the valuation formula.
Several projects have been implemented. Sunny Pool Value is $150,000 and Liquidity Reserve is $120,000. Sunny Token Price is $1,400 and Token Supply is 100 SUNNY. Alice would like to return three SUNNY.
Sunny Pool value: $150,000Liquidity Reserve: $120,000Value of Sunny Token: $1,400Redeemable Sunny Tokens: $120,000/$1,400 = 85.7142857 SUNNY
A maximum of 85.7142857 SUNNY can be withdrawn due to the given Liquidity Reserve. Alice receives $4,200 for her three tokens. The value of the Sunny Tokens is not affected by the withdrawal.
In the same situation as in the previous example, Bob wants to withdraw 90 tokens.
Sunny Pool Value: $150,000Liquidity Reserve:: $120,000Value of Sunny Token: $1,400Redeemable Sunny Tokens: $120,000/$1,400 = 85.7142857 SUNNY
Bob is only able to redeem 85.7142857 SUNNY directly through Social Impact Network. He could sell the remaining amount of 4.2857143 SUNNY on the secondary market.
In future, a system based on dynamic fees and tokenized project debt will make it possible for Bob to redeem all his shares even in the case of an exhausted Liquidity Reserve (see Roadmap).
All fees related to Sunny Token and Sunny Pool can be found here.