Penguin Finance app review

Penguin Finance

Penguin Finance app review

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Basic info

  • Token PEFI
  • Audited yes
  • DAO no
  • Yield farming yes
  • Team private
  • Hacks no

Audits

Auditors:

Certik

Certik

Token profile

Price Market cap.

Camille A. Hanard

Last updated: Nov 22, 2022

What is Penguin Finance

Penguin Finance is an Avalanche-powered platform building a set of dApps and financial products which offer users a variety of earning options through yield farming, staking, gaming, and fundraising.

How does Penguin Finance work

Penguin finance offers the following yield earning opportunities for its users: 

Igloos are yield farms allowing users to earn Penguin’s native tokens (PEFI) in addition to DEXes’ rewards by staking their LP tokens into the pools. Currently, 24 pools are available on Penguin Finance from such DEXes as Pangolin, Gondola, Trader Joe, Lydia, and others. 

Turbo Igloos are yield farms, which receive increased AVAX rewards during a limited time. Each incentivized Igloo enters into “Turbo Mode” for three days, boosting APRs by up to 10,000%. Currently, there are six pools eligible for Turbo Igloos. 

5-10% of non-PEFI rewards are collected as performance fees, depending on the pool.

In addition, users can also increase their yield through the Auto-nest option. With this function users’ rewards are automatically reinvested 2-3 times a day. Penguin Finance charges a 4.8% fee on the rewards generated. 1% of this fee goes to the developers of the respective liquidity pools, 2% goes to the Penguin Nest, and 1.8% is for ecosystem development as well as paying for gas fees for the protocol’s reinvesting bot.

The iPEFI Nest (Single-asset staking) option allows users to stake their PEFI tokens in exchange for iPEFI with no risk of impermanent loss. iPEFI is a token that represents staked PEFI, which can always be exchanged back to PEFI. To receive the rewards, users commit to lock their PEFI tokens inside the Nest, which will generate a passive income. In case of withdrawal, the protocol charges a 6% Paper Hands Penalty over the total withdrawn amount which is distributed among all iPEFI holders, to protect long-term investors and reward them with more PEFI.

iPEFI is the backbone of the protocol’s ecosystem, by holding these tokens users can participate in several dApps built on Penguin Finance.

Users holding iPEFI may participate in the Penguin Emperor game. In this game, users are competing against each other by stealing the Emperor’s throne and staying there for as long as possible. Users will need to bid to overtake the throne using iPEFI.  Depending on the game mode, the minimum and maximum bid of the game changes, as well as the time the event runs. At the end of the game whoever lasts on the throne the longest wins iPEFI from a jackpot pool. Penguin Finance fee is 3% whenever the bid is made, 66% of which is taken by the jackpot pool and the remaining 33% goes to the Nest for rewarding PEFI stakers.

Penguin Launchpad (IDO Platform) is a platform allowing new projects to fairly distribute their tokens to as wide an audience as possible. Penguin Launchpad doesn’t require KYC, it is just necessary to hold a certain amount of iPEFI to earn allocations. This amount will be adjusted for each offering due to the fluctuating price of PEFI, the number of holders, and the distribution of iPEFI. There will be several tiers determined by the amount of iPEFI held, with higher tiers offering bonus allocations. An allocation represents a share of all tokens to be distributed. The more iPEFI user holds the more allocations will be received. The number of tokens users can acquire will depend on the number of allocation points on hand.

Club Penguin is a single-asset iPEFI staking protocol. Users can stake their iPEFI in different contracts to earn other tokens of the Avalanche ecosystem. With this option, users benefit from no lockup period, no withdrawal fees, and no risk of impermanent loss. Each project Penguin Finance partners with has its own Iceberg. Iceberg is the smart contract where users stake their iPEFI to earn free tokens. Icebergs have limited staking time varying from 7-14 days depending on each Iceberg. There is no minimum amount of iPEFI required to take part in staking, however the more iPEFI is staked, the more tokens will be earned.

How to use Penguin Finance

Before starting using the Penguin Finance app, it is required to have some AVAX to pay for transaction fees and connect a wallet. Penguin Finance supports Metamask, Coinbase, and Clover. 

For Farming, it is necessary to navigate to the Farm section from the main menu. The page will display the list of all available pairs. Each pool accepts only the LP token from its corresponding DEX. Once the pool is chosen, it is necessary to click on it and select ‘Enable Farm’, which will be followed by approving the contract in a wallet. As the next step, the user must click the ‘Get LP token’ button in the pop-up window, which will open a new page of the DEX (depending on the previously chosen pool) in the browser. After acquiring the required LP token, the user needs to come back to the Penguin page and choose the amount of LP tokens to be deposited and confirm the operation. 

If a user wants to remove some or all LP tokens, it is necessary to click ‘Unstake’ on the slider, choose the number of tokens and select ‘Confirm Withdrawal’. If the user wants to add more LP tokens in existing pool or remove them from the pool, rewards are automatically ‘Harvested’. To collect the rewards, the user needs to go to the Farm page and click the ‘Harvest’ button under "Pending Rewards". This will require paying a gas fee. 

On the same pop-up window, users can choose to stake a portion of their PEFI for an auto-nesting function. Auto-nesting is customizable and the default amount set for every pool is 50% of PEFI rewards, which can be increased up to 100% to maximize the yield. 

To stake into iPEFI Nest, users need to have some PEFI in their wallet and go to the ‘Stake’ tab, where users have to click the ‘Approve PEFI’ button, enter the amount of PEFI tokens to be staked and click ‘Confirm Staking’. 

To collect the rewards from the nest, it is first necessary to swap iPEFI back to PEFI.  For that end, it is just required to click the ‘Unstake xPEFI’ button, choose the number of tokens to be withdrawn and confirm the operations. This step will also entail a 6% paper hand penalty (withdrawal fee).

To participate in the Launchpad, users need to have a certain amount of iPEFI to qualify for an allocation. Allocations are purchased with stablecoins (a choice of USDC.e, DAI.e, USDT.e, or MIM). Each Launchpad event is announced with the specification of the amount of iPEFI required for each tier. Participants are expected to register their iPEFI on the Launchpad page to guarantee their allocation(s).

Participants need to hold their iPEFI until the start of the Claiming phase, as a random snapshot will be taken after the end of the registration phase. This snapshot will determine the allocations. The exact token per allocation can only be determined at the end of the Registration Phase, as it will depend on the number of iPEFI staked.

In the claiming phase, participants need to exchange stablecoins for their allocated tokens, and then they will have several days to claim IDO tokens. If a participant fails to claim during this period, they will miss out their allocation.

The PEFI token

PEFI is Penguin Finance’s native token with a max supply of 21,000,000 tokens.

PEFI tokens can be staked to receive rewards and fees collected from the dApps within the Penguin Ecosystem. Penguin Finance is also planning to launch Penguin DAO where PEFI holders will have the right to propose and vote for changes in terms of fees, token burning mechanisms, and other parameters.

PEFI tokens are distributed in the following manner:  50% to liquidity providers & staking, 5% to marketing & community endowment, 25% for airdrops, 10% for the team, and the remaining 10% are for the Penguin DAO Treasury.

Is Penguin Finance safe

All the protocol’s smart contracts are open-source and available for review by the community. Also, these contracts are behind a 24-hour time-lock, meaning that any change will come into effect the day after they were made. Penguin Finance also runs a Bug Bounty Program with a reward of up to 20,000 USD.

The Penguin Finance team decided to remain anonymous for security purposes. It is however claimed that the team identities have been shared with the Ava Labs core team members. 

Partners

Penguin Finance has recently partnered with such Avalanche platforms as YDragon, Yeti Swap, and BooFinance, introducing more pools and bringing more yield opportunities to users. 

What’s next

In 2022, Penguin Finance plans to launch a new gambling game called Penguin Arena, get the protocol listed on CEXes, release the first NFT collection with the name CryptoPuffies, which can be used for farming and will be listed on NFT marketplaces, launch V2 of the Penguin Emperor game with anti-whale mechanisms and NFT integration. It is also planned to introduce a DAO and order additional audits. 

Links 

https://docs.penguinfinance.io/

 

 

 

 

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