Pangolin

Pangolin (PNG): A Comprehensive Guide to the DeFi Protocol on Avalanche

What is Pangolin (PNG)?

Pangolin (PNG) is a decentralized exchange (DEX) built on the Avalanche blockchain. Launched in February 2021, Pangolin was designed to provide fast, low-cost trading of cryptocurrency assets with a community-driven governance structure. As one of the premier DEXs on Avalanche, Pangolin (PNG) leverages the network's high throughput and rapid finality to offer users a seamless trading experience that competes with centralized exchanges in terms of speed while maintaining the security benefits of decentralization.

How Does Pangolin (PNG) Work?

Pangolin (PNG) operates as an automated market maker (AMM) protocol, similar to Uniswap on Ethereum. The platform uses a constant product formula (x*y=k) to determine asset prices within liquidity pools. Here's how it functions:

Key Components of Pangolin's Architecture:

• Liquidity Pools: Users contribute pairs of tokens to create trading markets, earning fees from traders who swap between these assets.
• Swap Mechanism: Traders can exchange one token for another directly through these pools without the need for a counterparty.
• Cross-Chain Compatibility: Pangolin supports assets from multiple blockchains via Avalanche's bridging technology.
• Governance: PNG token holders can participate in the protocol's decision-making process through voting.

By building on Avalanche, Pangolin (PNG) achieves transaction finality in seconds with minimal fees, addressing key limitations that plague Ethereum-based DEXs like high gas costs and network congestion.

Staking and Liquidity Mining on Pangolin (PNG)

Pangolin (PNG) offers multiple ways for users to earn rewards through participation in the ecosystem:

Staking Opportunities

PNG tokens can be staked through various mechanisms on the platform:

• Single-Sided PNG Staking: Users can stake their PNG tokens directly to earn additional PNG rewards.
• Liquidity Provider (LP) Staking: By providing liquidity to trading pairs that include PNG and staking the resulting LP tokens, users can earn enhanced yields.

Liquidity Mining

Rather than traditional mining used in proof-of-work cryptocurrencies, Pangolin employs liquidity mining where users earn PNG tokens by providing liquidity to trading pools. This process helps maintain adequate trading depth while distributing PNG tokens to active participants in the ecosystem.

The specific APR (Annual Percentage Rate) for staking and liquidity mining varies based on total value locked in each pool, trading volume, and current PNG emission rates as determined by governance.

What is PNG Used For?

The PNG token serves multiple functions within the Pangolin ecosystem:

Utility of Pangolin (PNG) Token:

• Governance: PNG holders can propose and vote on protocol changes, including fee structures, token emissions, and treasury management.
• Fee Discounts: In certain implementations, holding PNG can reduce trading fees on the platform.
• Yield Farming: PNG serves as the reward token in Pangolin's yield farming programs.
• Value Accrual: A portion of trading fees may be used to buy back and burn PNG, potentially creating deflationary pressure over time.

Launch and Distribution of PNG

Pangolin (PNG) took a distinctive approach to its token distribution, emphasizing fairness and community ownership:

Initial PNG Distribution

• No Pre-mine: Unlike many projects, Pangolin had no team allocation, investor distribution, or pre-mine.
• Community-First Approach: 95% of the initial PNG supply was distributed to the community through liquidity mining programs.
• Avalanche Allocation: 5% was allocated to the Avalanche Foundation to align incentives for long-term ecosystem support.
• Fair Launch: PNG distribution began immediately upon launch through liquidity provision incentives.

This distribution model established Pangolin as one of the most equitably launched DeFi protocols, with no venture capital or early investor advantages.

Additional Features and Information About Pangolin (PNG)

Unique Aspects of Pangolin

• Avalanche Consensus: By leveraging Avalanche's consensus mechanism, Pangolin achieves transaction finality in 1-2 seconds.
• Cross-Chain Integration: Through the Avalanche Bridge, users can bring assets from Ethereum and other chains to trade on Pangolin.
• Low Fees: Transaction costs on Pangolin are typically fractions of a cent, compared to potentially dozens of dollars on Ethereum-based DEXs during high congestion periods.
• Partnerships: Pangolin has established strategic partnerships with other projects in the Avalanche ecosystem to enhance liquidity and user experience.

Trading Pangolin (PNG) with Cryptohopper

Investors and traders interested in Pangolin (PNG) can easily access this asset through Cryptohopper's automated trading bot. Cryptohopper allows users to trade PNG on multiple exchanges using sophisticated trading strategies, automated portfolio management, and market analysis tools. Whether you're looking to accumulate PNG through dollar-cost averaging or implementing more complex trading strategies, Cryptohopper's platform offers a user-friendly way to interact with Pangolin and other cryptocurrencies across any supported exchange.

As the Avalanche ecosystem continues to grow, Pangolin (PNG) remains one of its cornerstone DeFi applications, providing critical liquidity infrastructure and earning opportunities for participants across the blockchain space.