Pangolin — A community-driven DEX for Avalanche & Ethereum Assets
Pangolin brings you the best trading opportunities to find and maximize your yield with fast settlement, low transaction fees, and a democratic distribution powered by Avalanche.
Pangolin is a decentralized exchange (DEX) based on Avalanche that uses the same automated market-making (AMM) mechanism as Uniswap, has a native governance token called PNG that is fully community distributed, and can trade all Ethereum and Avalanche tokens. Pangolin provides three crucial benefits in a crowded market with several competitors: rapid and cheap trades, community-driven development, and a fair and open token distribution.
Pangolin, for instance, can complete exchanges fast and cheaply. Because Pangolin is based on Avalanche, users can swap assets with sub-second transaction completion and transaction fees as low as a few cents. Pangolin trades are frequently as rapid as trades on centralized exchanges. Second, Pangolin is community-driven, in addition to the huge performance improvements above the current technical status quo. The native governance token, PNG, allows the community to fully control the product’s evolution. Finally, Pangolin has a token distribution strategy that is 100 percent community-focused, which means that all tokens are issued directly to the community, with no allocations to the team, advisers, investors, or insiders.
Existing AMMs, such as Uniswap and Sushiswap, have a mechanism of action that users are already familiar with. As a result, the remainder of this post will not go into detail on how Pangolin achieves its trading capabilities. Rather, the team delve deeper into the PNG token, covering its distribution mechanism and governance regulations.
Distribution: A 100% Community-Driven Governance Token
Pangolin is using a fair launch approach with its governance token (PNG) to underline the project’s dedication to being established entirely for the benefit of users. While PNG will permit all of Pangolin’s governance operations, and hence its future evolution, governance proposals will not begin until three months following Pangolin’s launch. The three-month wait is necessary to guarantee that enough PNG is provided to the community.
The team, investors, advisers, and any other insiders are not allocated with PNG tokens. As a result, Pangolin is fully driven by and owned by the community. PNG has a maximum quantity of 538 million tokens, of which 100% will be given to the community, as shown in Chart 1. The first 95 percent of tokens, or 512 million tokens, will go to the community treasury, where they will be used to fund liquidity mining at beginning. The remaining 5%, or 26 million tokens, will be given away as part of a community airdrop.
Community — Liquidity Mining Allocation (95% of PNG)
The vesting schedule is as follows: starting with 256 M tokens for the first four years, the quantity of tokens awarded halves every four years after that, meaning the next four years contribute roughly a quarter, and so on. This trend will continue indefinitely. For comparison, around 175,342 PNG will be distributed per day to liquidity miners for the first four years. The following is the whole timetable for PNG distribution in the liquidity mining allocation:
Community — Airdrop Allocation (5% of PNG)
The airdrop allocation will be apportioned based on UNI and SUSHI ownership. UNI and SUSHI token holders who had tokens on December 7th, 2020 will need to call withdraw on a distribution contract in order to claim the PNG in the airdrop. This transaction must be sent within one month of Pangolin’s launch from the same Ethereum address that holds UNI/SUSHI. The procedure is as follows:
- To begin, a user deposits SUSHI or UNI from their Ethereum address where tokens were held on December 7th, 2020, onto the Ethereum> Avalanche bridge contract.
- Second, the holder withdraws SUSHI or UNI from the Avalanche Ethereum> Avalanche bridge contract. The Avalanche withdrawal address must be the same as the Ethereum withdrawal address. This is possible since Avalanche comes pre-installed with Metamask and other tools, so Ethereum addresses resolve to the same Avalanche addresses.
- Finally, the user will be able to remove PNG immediately.
PNG’s government is highly community-driven, which adds to its value proposition. Pangolin’s development is totally dependent on the general community, as there are no insiders such as investors, team members, or other such stakeholders. Three months after launch, Pangolin governance will be operational, allowing for a number of crucial acts, including:
- Modifications to the liquidity pools
To begin, tokens will only be distributed through the liquidity mining pools indicated in the previous section. Until the pools are changed or another community effort is adopted as a formal governance proposal, the liquidity mining period will continue. Proposals can add or remove liquidity mining pools, or they can directly give PNG to a user or smart contract like a community treasury.
- Fee switch
The Pangolin fee switch will also be available to the community. This fee switch can send.05 percent of all exchange fees to a certain location. Swap fees will stay at.30 percent, while liquidity providers will only get.25 percent of the fees. This gives the community the opportunity to raise additional funds to assist any major community projects. The Pangolin fee switch is deactivated by default and has a 90-day timelock delay.
Pangolin Version 2
Pangolin V1, a proven idea for automated market makers (AMMs) unique to the Avalanche network, was released in February 2021. In terms of time-to-finality, Avalanche is the fastest smart contract platform in the blockchain market. It is both inexpensive and environmentally beneficial.
Pangolin has established itself as a safe, secure, and low-cost decentralized exchange, and the top DEX on Avalanche, since its start. The Pangolin V1 DEX has facilitated over $9.8 billion in trading volume in less than a year since its introduction, and it acts as a key piece of DeFi infrastructure in the ecosystem.
Pangolin Version 2 will have the following new features:
- Improved Tokenomics, reducing the $PNG emissions schedule, previously 28 years, to a new 4-year emissions schedule
- Dramatically reduced $PNG supply, the biggest token burn ever in DeFi’s history. 57% of all remaining $PNG tokens will be burned, making them substantially more scarce.
- Liquidity Provider Optimization, enabled by making our smart contracts even smarter, allowing Pangolin to now offer even higher incentives to liquidity providers.
- Additional LP Rewards, Pangolin will distribute the $4 Million USD of PNG tokens as rewards to liquidity providers in priority farms to celebrate Pangolin V2
- A new UX, releasing phase 1 of a redesigned UI, including a migration tool to help users migrate from old pools to the new Pangolin pools. Phase 2 of our redesigned UI will cover the entire Dapp UI.
Pangonomics V2 Proposal
New Tokenomics Improvement Proposal
This proposal aims to improve the PNG token’s underlying tokenomics. The following are some of the reasons for the proposal:
- for a DeFi protocol, a token emission timetable of 28 years is overkill.
- no foundation allocation jeopardizes Pangolin’s long-term viability.
- improve the distribution of PNG prizes to make it more dynamic and competitive.
The team plan to do this by taking the following steps:
- changing PNG’s emissions schedule to a four-year (retroactive) period
- set aside a percentage of the supply for a charitable foundation.
- Emissions will be gradually reduced in the future.
- Increase the treasury’s funding to 30 million PNG dollars.
- To stay competitive, provide attractive APRs in the first year.
- Deflationary measures (burns)
From the current supply and allocation of 538 million, Pangolin will move to 230 million PNG (a 57% reduction in PNG tokens):
New Max Supply: 230M Treasury Goal: 30M (13% of max supply), with 6M of the 30M set aside for the Team Fund
Duration: 4 years
The proposed Emissions Schedule will look similar to the below:
How is this going to happen?
- A proposal for on-chain governance will be loaded (tentatively scheduled for 11th October 2021)
- If the on-chain proposal passes, the above-mentioned emissions schedule will be applied.
- New universal guidelines 34 will be loaded for the new PNG distribution.
- The team is going to make a proxy contract. All PNG emissions will then be pushed to this Proxy contract from our current Vesting contract 11.
- After that, the Proxy contract will send some PNG to the Foundation and the rest to a new LiquidityPool contract. After the four years have passed, all PNG emitted will be burned.
- The Pangolin team haven’t finalized the design of the new LiquidityPool contract yet, but we’re looking into whether a MasterChef version or a new contract would make more logistical sense.
- Halborn will then audit these contracts.