Pangolin app review

Pangolin

Pangolin app review

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Open Dapp

Basic info

  • Token PNG
  • Audited yes
  • DAO yes
  • Yield farming yes
  • Team private
  • Hacks yes

Audits

Auditors:

Halborn

Halborn

Token profile

Price Market cap.

Yolanta Chomag

Last updated: Nov 23, 2022

What is Pangolin

Pangolin is a community-driven decentralized exchange (DEX) that runs on Avalanche. It was launched in February 2021 with the support of Ava Labs.

Since Pangolin is a Uniswap V2 fork, it uses the same automated market-maker (AMM) model as Uniswap. It was built on Avalanche to reduce fees and increase the speed of transactions. Notably, Pangolin allows traders to use Ethereum ERC-20 tokens by transferring them to Avalanche via the Avalanche bridge.

How does Pangolin work

Pangolin’s products include providing token swaps through an automated market maker exchange, limit orders, and liquidity providing programs which earn a 0.25% fee on all trades proportional to the user’s share of a liquidity pool. There are also farms where LP tokens can be staked for PNG rewards, as well as a stake feature for PNG tokens. The platform also supports crypto onboarding with a credit card. 

Traders on the platform have a choice between market and limit orders. Crypto onboarding happens through the integration of MoonPay, currently, the supported digital assets by the feature are AVAX, UST, LUNA, NEAR, HBAR, and ATOM. 

The latest version of the Pangolin farms has been designed to enable users to earn not only PNG tokens but also other project tokens simultaneously. The new program is called Pangolin Super Farm, all pools eligible for it are marked on the dApp with a yellow “Super farm” sign, each of them has detailed information on its rewards. 

Pangolin’s staking programs change but the latest one includes not only PNG rewards but also two other tokens, as part of the latest Avalanche Rush program. These are LUNA and AVAX tokens which will be distributed alongside PNG stakers PNG token rewards. The company is joining this program for the second time. 

How to use Pangolin

The Pangolin app allows exchanging both Avalanche and Ethereum tokens. There is a 0.3% Pangolin fee for each swap, 0.25% of which is given to liquidity providers. In addition to token swap and liquidity pools, Pangolin features a liquidity mining program that enables liquidity providers to earn PNG rewards.

Pangolin has a fiat-to-crypto gateway available on the platform where Avalanche's native AVAX token can be purchased with a bank card, Apple Pay, or via bank transfer, directly into a wallet Pangolin supports.

The PNG token

Pangolin (PNG), the platform’s native governance token, is capped at a supply of 538 million. PNG is 100% community distributed. The first 5% were given to airdrop recipients in March 2021, and the rest of the tokens are intended for liquidity miners. The number of tokens distributed halves every additional four years. 

PNG can be used in liquidity pools and staking on Pangolin. PNG holders can vote for proposals with their tokens or delegate them to another community member to vote on their behalf. The minimum number of tokens to participate in voting is 1,000,000 PNG owned or delegated.

Is Pangolin safe

Pangolin is entirely community-driven and community-owned. There is no official information published about the community leaders or the Pangolin team, as there are none —  the platform claims to put the users first. 

Although audited before deployment, one of Pangolin’s smart contracts was found to have a vulnerability which allowed someone to extract fees meant for PNG stakers. The contract was responsible for the company's single-sided staking buyback function. The incident resulted in a $306k worth of rewards meant to be distributed to stakers being lost. The Pangolin team found out about the vulnerability in a timely manner and paused the contract to protect the protocol’s swap fees. 

The platform’s solution to the Pangolin hack was a buy-back program of 803.976 PNG tokens from swap fees accumulated before the contract was breached. This was meant to increase the PNG staking APR for a period of two weeks. Pangolin claims no user funds were at risk, the funds that were stolen were Pangolin protocol’s swap fees, intended for PNG single-sided staking rewards.

Partners

Pangolin offers bonds in partnership with Olympus and leveraged trading with Marginswap and WOWswap

Bonds give users an opportunity to exchange their liquidity provider (LP) tokens for Pangolin (PNG) at a discounted rate. The partnership with Olympus provides Pangolin with greater exposure as well as increased liquidity. 

Marginswap and WOWswap allow users to access margin and leverage trading. In addition, users borrowing from Marginswap are rewarded with PNG tokens.

What’s next

The team is going to seek to form partnerships with both native Avalanche projects and external projects. This will help to grow the existing Avalanche ecosystem and bring new participants to the network. Pangolin is also planning to improve upon the existing governance system, allowing users more access to vote, and launch a Pangolin Academy to successfully onboard new users. 

For Q2 2022, the main focus on the Pangolin roadmap is placed on prioritizing features and communication improvements for “loyal community members”, implementing infrastructure for a multi-chain Pangolin ecosystem, and prioritizing products and services that may increase the company’s fee revenue.

Links

https://docs.pangolin.exchange/

https://snapshot.org/#/pangolindex.eth

 

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