In the rapidly expanding realm of decentralized finance (DeFi), Pangolin stands out as a significant platform with distinct services. This article looks into the complexities of Pangolin, a decentralized exchange (DEX) that runs on the cutting-edge Avalanche Network. Pangolin uses an Automated Market Maker (AMM) methodology similar to Uniswap, employing the Avalanche blockchain’s advanced features for improved performance.

The egalitarian PNG token distribution, which provides direct allocation to the community while skipping team or insider allocations, is a strong example of Pangolin’s strong commitment to a community-driven strategy in the article. You will learn about Pangolin’s various functionalities, such as token swapping, liquidity pools, and staking, while appreciating its comprehensive support for tokens on both the Avalanche and Ethereum networks.

What is Pangolin?

Pangolin is a decentralized exchange (DEX) built on the Avalanche Network that uses an Automated Market Maker (AMM) technique similar to Uniswap. Pangolin, known for its speedy and cost-effective trade settlements, uses the Avalanche blockchain’s outstanding efficiency, enabling users to perform asset deals with sub-second transaction finality at substantially lower costs than many other platforms.

Its governance structure demonstrates its dedication to a community-driven approach. The platform’s principal governance token, PNG, allows the community to participate actively in its growth. Pangolin is committed to a transparent and egalitarian token distribution approach in which all tokens are awarded directly to the community, with no allocation to the team, advisers, or insiders.

Pangolin, in addition to supporting a large range of tokens from the Avalanche and Ethereum networks, now supports numerous blockchains. The platform is compatible with various chains like as Flare, Hedera, and NEAR, among others. Pangolin’s multi-chain interoperability not only increases its potential for token swapping and liquidity, but it also strengthens its position in the larger DeFi ecosystem as a flexible and inclusive platform.

History of Pangolin, Origins and Key Persons

Ava Labs created the Pangolin project, which is essential to developing the Avalanche blockchain. However, Pangolin swiftly organized an independent team to empower community members by giving them control over governance and decision-making. This transformation mirrors the project’s culture, prioritizing community interaction and decentralization over central power and control.

Pangolin stands out in terms of transaction processing speed and cost. Built on Avalanche, it enables users to conduct asset swaps with low transaction fees and speedy finality. The platform also incorporates features commonly found in centralized exchanges (CEXs), such as limit orders and Super Farms, to provide a comprehensive and user-friendly experience for DeFi users.

Furthermore, using the Avalanche network, Pangolin has made substantial progress in addressing challenges common to the Ethereum network, such as high gas fees. This strategic approach has allowed it to deliver cheaper transactions faster than many Ethereum-based DEXs.

As a dynamic player in the DeFi industry, Pangolin has experienced significant development, including a high Total Value Locked (TVL), thousands of daily users, and various collaborations. The platform continues to evolve and expand its ecosystem, focusing on characteristics that contribute to its long-term success, such as increased governance, UX redesign, and building bridges with other projects.

Furthermore, the Pangolin Academy provides materials and courses on DeFi, collaborations, and community development, demonstrating its dedication to community education and involvement.

How Does Pangolin Work?

Pangolin employs an AMM protocol, which enables transactions to be completed against assets in liquidity pools. Users can contribute to these liquidity pools by depositing funds, effectively becoming liquidity providers. To become a liquidity provider on Pangolin, you must supply two assets to the pools. In exchange, liquidity providers receive fees for trades conducted in their pools. This incentivization is a significant aspect of AMMs, encouraging users to contribute liquidity to the exchange.

Source: Pangolin Documentation

Pangolin supports token switching, making it simple to exchange one Avalanche token for an Ethereum token and vice versa. Automated liquidity pools help with this. The platform has a function called Super Farms, which is liquidity mining. This feature enables users to earn high annual percentage rates (APR) by participating in liquidity pools. Furthermore, staking on Pangolin is simple and profitable, requiring only an Avalanche or Ethereum wallet.

Users can utilize the Avalanche Bridge (AB) to trade ERC-20 tokens across the Ethereum and Avalanche networks, increasing the platform’s cross-chain capabilities. Pangolin levies a 0.3% fee for each exchange, which is divided among liquidity providers, PNG stakeholders, and the Pangolin DAO’s swap fees wallet.

Pangolin’s native governance token, PNG, is essential to the ecosystem. It is utilized for governance, allowing token holders to influence the exchange’s decision-making process. PNG is distributed solely to the community, with no allocations to team members, advisors, or insiders. Pangolin’s solution tackles issues in the DEX arena, particularly those related to Ethereum’s network, such as high transaction fees and sluggish processing times.

Pangolin uses Avalanche’s features to deliver speedier transactions and lower fees. The platform’s emphasis on community-driven development and equitable token distribution distinguishes it in the DeFi environment.

Key Features of Pangolin

PNG token

Pangolin’s unique feature is its token, PNG, which serves as the exchange’s governance money. The Pangolin team adopted a unique approach by implementing a token distribution methodology that is entirely community-focused. This means that no advisors, investors, or insiders receive any PNG tokens. The entire supply of PNG tokens is limited to 230 million, with a major portion used to incentivize liquidity providers on the network.

Source: Pangolin Documentation

Automated Market Maker (AMM) Model

The AMM model is a foundational component of current decentralized exchanges, and Pangolin has adopted it to offer an efficient and user-friendly trading environment. Unlike traditional order book models, AMMs use liquidity pools to enable trades, which can result in improved pricing stability and less slippage. The high trade volume of Pangolin since its introduction demonstrates how effective this idea has been.

Multi-Chain Capabilities

A standout feature of Pangolin is its ability to integrate with multiple blockchains, including Flare, Hedera, and NEAR. Integrating several chains is a major changer, allowing Pangolin to reach a wider audience and provide a variety of cryptocurrencies. This multi-chain approach broadens the platform’s capabilities while reducing reliance on a single network, cutting transaction costs, and enhancing transaction speed. This strategic decision establishes Pangolin as a dynamic and inclusive platform within the DeFi ecosystem.

PNG (Avalanche Network): As Pangolin’s primary token on Avalanche, PNG is critical for its decentralized governance and egalitarian distribution. It exemplifies the platform’s high-speed, low-cost trading environment, which is vital for DeFi’s scalability and user engagement. PNG’s role in liquidity provision and reward distribution further solidifies Avalanche’s appeal in the DeFi sector.

PFL (Flare Network): PFL’s integration into Flare Network marks a significant step in diversifying Pangolin’s DeFi offerings. It enhances user participation in governance, contributing to a more decentralized and robust ecosystem. PFL’s unique position in Flare’s EVM-compatible environment broadens the scope of DeFi applications, promoting greater inclusivity and interoperability in the sector.

PBAR (Hedera Network): PBAR on Hedera brings a unique dimension to Pangolin’s DeFi capabilities. Its integration demonstrates Pangolin’s commitment to embracing advanced blockchain technologies. PBAR aids in ensuring faster, more efficient transactions and governance processes, highlighting Hedera’s unique features like high throughput and low fees.

PNR (NEAR Protocol): PNR’s role in the NEAR Protocol showcases Pangolin’s strategic move towards embracing high-performance blockchains. It enhances the platform’s scalability and user accessibility, which is key for DeFi adoption. PNR’s contribution to Pangolin’s ecosystem emphasizes NEAR’s strengths, like sharding and reduced carbon footprint, aligning with the broader goals of efficiency and sustainability in DeFi.

Concentrated Liquidity Pools in Pangolin Elixir

Concentrated liquidity pools enable LPs to invest their capital better by focusing on specific price ranges. This can result in higher returns for LPs because their funds are more actively involved in trades within their target price range. It also assists traders by increasing liquidity in the most important price segments, resulting in more efficient deals with less slippage.

In-Range Farming Mechanism

The in-range farming approach compensates LPs for supplying liquidity in important price ranges, resulting in a more dynamic and efficient marketplace. This method encourages LPs to be more strategic in their fund allocation, aligning their interests with those of active traders. As a result, the platform’s total liquidity increases, which benefits all users.

User Interface and Experience

Pangolin Elixir’s user interface is intended to minimize the barrier to DeFi and trade. A well-organized and intuitive interface can improve the user experience, allowing novice users to get started and expert users to carry out sophisticated methods. This emphasis on usability is critical for the widespread adoption of decentralized financial services.

Superior Trading Experience

Pangolin Elixir provides a trading experience comparable to centralized exchanges by leveraging concentrated liquidity pools. Reduced slippage and increased capital efficiency are crucial in a market where even minor price changes can substantially influence trade outcomes. This makes Pangolin Elixir a desirable platform for casual traders and experienced investors.

Source: Pangolin Documentation

Comparison to Other DEXs

In contrast to traditional DEXs, which may have diffused liquidity over a wide price range, Pangolin Elixir’s concentrated liquidity methodology allows for more targeted and efficient trading. This differentiator helps Pangolin stand out in a competitive market by providing practical benefits such as trade execution and liquidity provision.

Is Pangolin a Good Investment?

Determining whether Pangolin (PNG) is a solid investment requires a multidimensional study that considers various criteria, including market trends, technical analysis, and general cryptocurrency market circumstances. Historical price performance can provide insights, but it is only sometimes a good forecast of future performance. For example, Pangolin has experienced considerable variations over time. Future price predictions differ, with some indicating potential increases.

However, these projections are theoretical and should be considered with caution. Conducting a thorough fundamental study is critical, considering aspects such as trade volume, utility, and the platform’s strategic developments. Before investing in cryptocurrency, conducting a thorough study and understanding its volatility is important. Your unique investment objectives, risk tolerance, and investment horizon are all essential considerations in assessing whether Pangolin is a good investment for you.

How Can You Own PNG?

One approach to acquiring PNG is by going through a centralized cryptocurrency exchange. The first step is to create a Gate.io account and complete the KYC process. Once you have deposited money into your account, follow the instructions to purchase PNG on the spot or futures market.

News on PNG

Surge in Price

Pangolin’s PNG token has seen a significant price increase, rising by more than 1,100% since its lows in October. This sharp growth has also boosted the price of Avalanche’s AVAX token. The rise in PNG’s value is due to increased trading volume on the market.

Token Supply Reduction

Pangolin DEX plans to burn 57% of its PNG token supply. This decision came after a vote to improve the tokenomics of the PNG token. The suggested reduction from 538 million to 230 million tokens is intended to migrate to a more sustainable token distribution methodology. The reform involves decreasing the emission plan from 28 to 4 years and applying a monthly deflationary strategy to reduce emissions.

Take action on PNG

Users can trade PNG here.