Pangolin
Pangolin is a community-driven decentralized exchange native to Avalanche that enables permissionless trading and liquidity provision (to earn trading fees).
- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: PNG
- Tags: Market Making
- TVL: $49.3M (Rank #94)
- TVL Ranking by Market Making: #0
- Blockchain: Avalanche, Flare, Hedera, Songbird
- Chain TVL
- Avalanche: $48.88M
- Flare: $160.08K
- Hedera: $155.08K
- Songbird: $136.47K
- Code reviewed by at least one experienced auditor; Halborn audited in October 2021
- Public team promotes accountability
- No documented protocol hacks since launch
- Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
- Top 20% by total value locked slightly reduces risk
- Multisig wallet controls protocol upgrades
- Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
- Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
- At least one minor governance issue documented
- Low voting power concentration reduces risk
- No death spiral concerns
- This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
- Pangolin is a Uniswap fork implemented on the Avalanche chain
How Pangolin works
Pangolin is an automated market maker (AMM) that is a fork of Uniswap V2 built on Avalanche. AMMs rely on liquidity pools rather than traditional order books to execute decentralized trades. The liquidity pools are funded by users who deposit two tokens in equal proportion in exchange for a liquidity provider (LP) token that represents their claims to their share of the total pool, plus a portion of trading fees. On Pangolin, users can earn additional yield by locking up their LP tokens to farm for native protocol tokens.
How Pangolin makes money
Pangolin charges a 0.3% fee on all trades within a liquidity pool. Of this amount, 0.25% is paid to LPs as a reward for providing liquidity, 0.0425% paid to PNG stakers, and 0.0075% paid to DAO’s swap fees wallet.
How you make money on Pangolin
You can provide liquidity to earn 0.25% of trading fees on Pangolin. You can also stake PNG on the platform to earn a portion of all swap fees (0.0425%) generated on the platform.
