What is Pangolin (PNG)?

Deep Dive

1. Purpose & Value Proposition

Pangolin operates as a decentralized exchange on Avalanche, enabling users to trade assets without intermediaries. Its AMM model relies on liquidity providers (LPs) who earn fees from trades. By building on Avalanche, it offers sub-second transaction finality and fees under $0.01, making it competitive against Ethereum-based DEXes. Key features include dynamic fees (adjusting based on pool volatility) and dual rewards (staking PNG earns $AVAX and $PNG).

2. Technology & Ecosystem

The platform integrates with cross-chain protocols like Kyber Network and ODOS to aggregate liquidity and optimize swap routes. Its V3 upgrade introduced concentrated liquidity positions, allowing LPs to set custom price ranges for higher capital efficiency. Partnerships with projects like Flare Network also expand interoperability beyond Avalanche.

3. Tokenomics & Governance

PNG serves as a governance token, letting holders shape protocol decisions. For example, a 2025 proposal introduced dynamic fee tiers based on community voting. Additionally, PNG incentivizes liquidity provision—staking tokens in pools earns yield, while protocol fees partially fund a community treasury.

Conclusion

Pangolin combines Avalanche’s technical strengths with decentralized governance to create a flexible, user-owned trading platform. Its focus on cross-chain liquidity and LP incentives positions it as a key player in Avalanche’s DeFi ecosystem. How might Pangolin’s governance model evolve to address emerging Layer 2 competition?