Launched in February 2021, Pangolin represents a decentralized cryptocurrency exchange (DEX) on the Avalanche blockchain. Built to swap all tokens issued on Ethereum and Avalanche, the project is based on the same automated market-making (AMM) model as Uniswap. At this, the main purpose of Pangolin is to address the problems of expensive gas fees as well as slow transaction speed.
November 21, 2022, is set as the launch date of Pangolin V2 aiming to bring a number of significant improvements. These include reducing the PNG (the native Pangolin token) issuance schedule from 28 to 4 years, reducing the PNG supply by burning 57% of all remaining PNG tokens, increasing incentives for liquidity providers, and additional distribution of LP in PNG tokens as rewards to liquidity providers in priority farms.
Pangolin main advantages over other exchange platforms include low transaction fees, easy swaps, increased security, fast trades, community-driven development, deep liquidity, and democratic token distribution.
To be able to use the exchange, one needs a Metamask wallet connected to it. In addition, users must have AVAX (the Avalanche native token) in their wallets in order to pay gas fees on the Avalanche network. AVAX can be bought for fiat via wire transfer, debit card MoonPay, and Apple pay. The Pangolin DEX supports purchases in 29 fiat currencies including USD, EUR, GBP, AUD, CAD, NZD, etc. The trading platform has only a web version, though, and doesn’t come with any mobile app.
Pangolin allows users to swap Avalanche and Ethereum-based tokens, provide liquidity to earn passive income, stake PGL tokens for additional rewards, and design the project’s future. Besides, it enables PNG single staking, provides Pangolin Protocol Analytics with advanced charting tools and allows setting limit orders for any token on the platform.
Pangolin relies on the Avalanche bridge to transfer assets between Avalanche and Ethereum. Users with ERC-20 tokens can use it to bring the funds to Avalanche and swap them for other tokens or add liquidity to any pool on Pangolin.
Besides, Pangolin offers an Automated Market Maker mechanism to increase the probability of successful transactions. Moreover, community members can manage liquidity on Pangolin themselves. All they need to do is invest in one of the available liquidity pools or create a new one.
Since there are no insiders like investors, founding team members, or advisors, the development of Pangolin is determined by its community. For example, its members can decide on modifications in the liquidity pools and fee structure.
Being a fork of Uniswap V2, Pangolin is considered one of the most secure Avalanche protocols. It does not store users’ purchase history or any personal data. Moreover, in October 2021, the Halborn team conducted a security audit of the Pangolin smart contract. As a result, Halborn identified some security risks that were considered and accepted by the project’s team. So far, there have been no security breaches.
Both makers and takers of liquidity are charged a 0.30% fee. This fee is allocated among liquidity providers in proportion to their contribution to liquidity reserves. Transfer fees vary by payment method and make up 2.9% + $0.30 for US debit cards and Apple Pay, 3.9% + $0.30 for international debit cards and Apple Pay.
The Pangolin token
Pangolin or PNG is a native utility and governance token of the Pangolin exchange created on the Avalanche blockchain. The maximum supply of PNG is capped at 538 million coins. 95% of tokens were reserved for the community treasury while the remaining 5% were intended for a community airdrop. This means that Pangolin features a completely community-focused token distribution model. PNG trading began on February 19, 2021.
The token release is scheduled as follows: 256 million tokens will be distributed over the first four years (about 175,342 PNG per day) to liquidity miners, after which the number of tokens will be halved every four years to follow.
PNG can be used for providing liquidity in farms, single staking, and trading. After token holders create a new pool or add liquidity to an existing one, they receive PGL (liquidity provider tokens) in return, which represent their share in the pool. Liquidity providers earn a 0.25% fee on all trades based on their share of the pool. Earned PGL tokens are further deposited into one of their participating pools to generate more Pangoline coins. The participants can claim their earned PNG tokens without having to remove their PGL tokens. At the time of writing, the liquidity mining program on Pangolin covers AVAX and PNG pools.
Apart from that, PNG tokens represent users’ voting shares in the Pangolin governance. To exercise their governance rights, PNG token holders can join the community forum to participate in discussions, vote for the developers’ proposals, and determine the future of the project.
The PNG token can be traded on Pangolin, Trader Joe, Gate.io, MEXC, BitMart, LBank, and AAX, with AVAX, USDC.E, and QI being the key trading pairs with the highest trading volume. Users can also trade PNG on MarginSwap and WOWswap with up to 5X leverage.
Pangolin team and partners
The initial development work for Pangolin was performed by Ava Labs. After that, the project’s community hired an additional team of developers and specialists in digital production, strategy, project management, advertising, and digital marketing analytics.
Justin Trollip, the CEO of the project, is highly competent in business intelligence and analysis. He is also the founder of Kudoo (an open-source ERP system). Stephen Novenstern, an experienced sales director, is the Head of Strategy. Firat Akkan, a former lawyer and investment banker, is the Head of Business Development who explores new business opportunities and carries out business strategies. Ken Burbary, a Chief Marketing Officer at Pangolin Exchange and Pangolin Labs, also works as a CMO at Maximizer and a digital marketing professor at Cornell Johnson Graduate School of Management.
Since its launch, Pangolin has established multiple partnerships including projects such as DeFi Yield Protocol (a platform that offers solutions for yield farming, staking, and NFTs), AVME (an antivirus and malware protection provider), Defi Launch (a multi-chain incubator), Spore (a cross-chain bridge from Avalanche to Binance Smart Chain), Poolz (a cross-chain token launchpad), Beefy.Finance (a multichain yield optimizer), etc.