Sunrise DA is the world's only Data Availability Layer (DA Layer) that supports Proof of Liquidity and off-chain Blobs.

It is attracting attention as next-generation infrastructure that dramatically improves the scalability and accessibility of modular blockchains.

Since the initial testnet launch in July 2024, it has achieved global growth, surpassing 100,000 active users in just three weeks and 200,000 in six weeks, despite being a blockchain originating from Japan.

The official documentation is here

1. Proof of Liquidity

Sunrise DA employs "Proof of Liquidity" (PoL) as its consensus mechanism.

The most prevalent consensus mechanism currently is "Proof of Stake" (PoS), used by Ethereum and others, but Proof of Liquidity is a new concept that replaces PoS.

The main drawback of PoS is that "it does not directly generate economic activity itself."

While locking tokens and earning rewards is economically rational from the perspective of individual validators, the economic effect on the entire ecosystem is limited.

On the other hand, in PoL, by giving Voting Power to substantial economic activities (such as providing liquidity to Sunrise L1 native liquidity pools), a positive feedback loop is created throughout the network. This series of positive feedback loops is called "The Liquidity Flywheel."

2. Data Availability Verification Mechanism using Off-Chain Blobs

Sunrise DA enables the realization of "big block L2," which was difficult with conventional DA Layers. This is because Sunrise DA, unlike other DA Layers, employs off-chain Blobs.

For example, in conventional DA Layers like Celestia, it is necessary to write Blob data onto the chain when proving data availability, and this limits data processing capacity.

On the other hand, Sunrise DA writes data to off-chain distributed storage like Arweave.

This enables the realization of fully on-chain AI and blockchain games (BCG) that exceed the data processing capacity of conventional L2s.

3. Native Support for IBC

IBC (Inter-Blockchain Communication) is an Interoperability standard born from the Cosmos ecosystem that enables communication and asset transfer between independent blockchains.

Sunrise DA natively supports IBC, inheriting the assets of the Cosmos ecosystem.

Furthermore, L2s built on Sunrise DA using OPStack, etc., can also support IBC.

Sunrise DA has a technical partnership with Datachain, a company that researches and develops interoperability solutions. L2s on Sunrise DA can support the IBC standard through Datachain's LCP (Light Client Proxy).

A total of 7% of the token supply was planned to be distributed as an initial airdrop at TGE (Token Generation Event). Additionally, 5% of the token supply is reserved for future initiatives. Sunrise is considering combining these two token allocations (up to 12%) and distributing them simultaneously during the genesis airdrop.

Sunrise's airdrop is divided into six Waves, and the currently ongoing incentivized testnet is Wave 4, along with a Galxe campaign.

Wave 1: Gluon/ex-UnUniFi ($GUU/$GLU) Stakers

• Total Distribution: 2% of the token supply
• Snapshot Date: June 14, 2024, 6:00 UTC
• Airdrop Claim Guide will be published soon

Wave 2: Celestia ($TIA) Stakers + LSTs ($milkTIA) + ($stTIA)

• Milky Way $milkTIA holders are eligible for Wave 2
• Stride $stTIA holders are eligible for Wave 2
• Total Distribution: 2% of the token supply
• Snapshot Date: June 14, 2024, 6:00 UTC
• Airdrop Claim Guide will be published soon

Wave 3: [REDACTED]

• Wave 3 is reserved for the private ecosystem
• Total distribution will be announced later
• Snapshot date will be announced later

Wave 4: Galxe + Incentivized Testnet Participants

• Total distribution will be announced later
• Snapshot date will be announced later Galxe is here  Official Guide is here

Wave 5: To be announced later

Wave 6: To be announced later

1. Access the site
2. Connect your Cosmos wallet
3. Connect your EVM wallet
4. Register a Username
5. Get Testnet $RISE from the Faucet
6. Swap RISE to get USDC and USDT
7. Provide liquidity to the Sunrise testnet liquidity pool (USDT/USDC pair is recommended)
8. Claim liquidity pool rewards to earn vRISE
9. Use Haru Yen (points) automatically awarded according to the amount of vRISE earned to purchase items in the Shop
10. Customize Haru (NFT) with items
11. Complete the Galxe tasks

Final Goal of Airdrop Activities

Aim for the following and steadily manage the liquidity pool every day.

1. Maximize vRISE earned through liquidity provision rewards.
2. Maximize Haru Yen earned according to the amount of vRISE earned.
3. Customize Haru to your liking by purchasing items in the Shop using Haru Yen (it has been announced that "the customized Haru will eventually become an NFT").
4. Maximize Haru's XP (experience points) by purchasing items in the Shop using Haru Yen.

Main Tokens (RISE, vRISE)

・RISE:
┗Sunrise's native token. Used for gas fees, etc.
┗Transferable
┗30 RISE can be claimed daily from the Faucet

・vRISE:
┗Sunrise's governance token. Used for Gauge Voting, etc.
┗Non-transferable
┗Can only be earned through liquidity provision rewards to the Sunrise liquidity pool

・USDT・USDC:
┗General stablecoins
┗Recommended as a liquidity provision pair
┗Can be obtained by swapping RISE

NFT (HARU)

・HARU:
┗A character customized by each user. The core of the Sunrise v2 campaign
┗The goal is to equip HARU with many items and accumulate XP (experience points, details later)
This customized Haru will eventually become an NFT
┗Customizing this Haru is one of the ultimate goals for users in the Sunrise v2 campaign

Points (Haru Yen, XP)

・Haru Yen:
┗Points distributed according to the amount of vRISE earned
┗*Haru Yen is distributed every time you earn vRISE, so even if you use your vRISE for delegation or Gauge Voting, your Haru Yen will not decrease.
┗Used in the Sunrise v2 campaign game
┗Purchase items in the Shop using Haru Yen

・XP:
┗Haru's experience points
┗Increases according to the purchase amount every time you purchase an item in the Shop using Haru Yen ← Maximizing this XP is one of the ultimate goals for users in the Sunrise v2 campaign

First Steps

1. Access the site

2. Connect your Cosmos wallet

3. Connect your Ethereum wallet 

Check your GitCoin Passport score here

4. Register a username

Any name or random text is fine.

5. Claim 30 RISE from the Faucet

First, let's get some RISE tokens. You can claim 30 RISE from the official Faucet every day.

6. Swap RISE to get USDC and USDT

Swap RISE to get the tokens you want to provide liquidity for.

To provide liquidity for the USDT/USDC pair, swap the 30 RISE as follows:

• Swap 11 RISE for USDT and 18.9 RISE for USDC (leave 0.1 RISE for gas fees).

7. Provide liquidity to the Sunrise testnet liquidity pool (USDT/USDC pair is recommended)

The USDT/USDC pair is recommended.

By providing liquidity with the Custom Range log±10% setting, you can earn liquidity rewards stably and efficiently.

(See the explanation at the end of the article if you are interested)

This completes the initial setup. You are now ready to earn vRISE as liquidity provision rewards. Wait until you have accumulated a reasonable amount of liquidity provision rewards (especially vRISE) (the next day is sufficient).

Next, I will introduce the daily routine.

Daily Routine

I complete my daily airdrop routine for each chain in about 5-10 minutes every morning. For Sunrise, it's as follows:

1. Connect both EVM and Cosmos wallets on the Sunrise Portal site (you cannot claim from the Faucet without both wallets connected).
2. Claim 30 RISE from the Faucet.
3. Swap the acquired RISE to USDT and USDC (Swap 11 RISE to USDT and 18.9 RISE to USDC. Reserve 0.1 RISE for gas fees).
4. Claim liquidity pool rewards to earn vRISE (*Claim before increasing the liquidity provision amount).
5. Increase the liquidity provision amount (add the swapped USDT and USDC to the existing pool).

This completes the daily routine.

Components of DEX Liquidity Provision Rewards

The amount of reward from a liquidity pool is mainly determined by the following five factors:

(This is not specific to Sunrise but general knowledge about Uniswap, etc.)

1. Pool APR (Annual Percentage Rate): The overall reward rate of the pool
   
2. Pool Trading Volume (24h Volume): The higher the trading volume, the higher the fee income
   
3. Proportion of Liquidity Provided: The larger the user's provided liquidity amount / total TVL ratio of the pool, the more advantageous (is there a strategy to provide liquidity to minor pairs?)
   
4. Price Range Setting: If the price fluctuates within the log±10% range, the liquidity will be effectively utilized. If the price moves outside the range, it will become only one token, and the rewards will decrease.
   
5. Provision Period: The longer the period, the greater the accumulated rewards
   

Liquidity Provision Strategy in Sunrise

In conclusion, it is most recommended to provide liquidity to the USDT/USDC pair with the Custom Range log±10% setting.

• High stability because it's a stablecoin pair (no risk of impermanent loss)
• Highest 24h trading volume ($309.91M)
• Highest TVL (9.91B)
• vRISE reward APR itself is 4th from the top (61.4%), but it's within a comparable range to the highest APR ATOM/RISE pair (62.8%). Considering the trading volume, the reward is likely the highest.

Swap the RISE claimed daily from the Faucet into USDT and USDC.

Specifically, it is recommended to provide liquidity at a ratio of 11 RISE to USDT and 18.9 RISE to USDC.