MEXC Global Research: A DEX Project Based on The Avalanche Protocol: Pangolin

Pangolin

Pangolin is a decentralized and community-driven trading platform launched by Avalanche. Its governance token will be distributed to the community in a model known as a “fair launch”. Similar to Uniswap’s AMM, it allows users to use Avalanche’s underlying capabilities to enhance trading speed and lower transaction costs. Pangolin’s PNG governance token will be distributed to its users in a model known as a “fair launch”. The team did not raise funds or own any tokens, so 0.3% of the trading transaction costs will be refunded to the liquidity providers.

Pangolin is a DEX (decentralized trading platform) operated on Avalanche. It uses the AMM model, which is identical to Uniswap, allowing users to trade all of the tokens on Ethereum and Avalanche.

Pangolin has three important characteristics: Fast and cheap transactions, community-driven development, and fair and open distribution of tokens.

Fast and cheap transactions: Since it is established on Avalanche, relying on the Avalanche Protocol’s characteristics, users can exchange assets while enjoying a sub-second trading certainty and transaction costs as low as a few cents.

Community-driven: Pangolin conducts community governance through PNG tokens so that the community can fully promote product development.

100% Community Token Distribution: PNG Governance token will be fully distributed to the community and shall not remain in the team as it is a platform fully governed by the community.

Tokenomics

Native token: PNG

Total: 538,000,000 tokens

Liquidity mining: 95%, 512,000,000 tokens

Community Airdrop: 5%, 26,000,000 tokens

Distribution of Liquidity mining:

Pangolin started with 256 million pieces in the first four years. The distribution will be halved every four years, so the production will be completed in about 32 years. According to calculations, approximately 175,342 PNG tokens were distributed every day in the previous four years.

The liquidity pool mainly consists of the trading pairs of AVAX and PNG. PNG will be distributed to every pool based on liquidity and calculated according to the total value of AVAX in the pool. In non-AVAX pools, the liquidity ratio is calculated by comparing the basic price of tokens and AVAX.

PNG will distribute to every pool based on liquidity, according to the total value calculated by AVAX. In non-AVAX pools, the liquidity ratio is calculated based on comparing the basic price of basic tokens and AVAX.

For example:

Assuming there are three pools, AVAX/USDT, AVAX/PNG, and PNG/USDT. The price of AVAX is 4USDT and 40PNG.

For AVAX/USDT pool, the AVAX liquidity is one, so there are 4 USDT.

For AVAX/PNG, the liquidity is one, so there are 40PNG.

For PNG/USDT, the liquidity is two, so it’s 80PNG.

Liquidity of 80PNG equals 2AVAX. Therefore, the final liquidities of the three pools are 1, 1, and 2, respectively, so there will be a total of 4 AVAX. As a result, the previous two pools are rewarded 25% of PNG, while the third pool receives 50% of the reward.

PNG’s practical value

Value: Community governance, voting, and proposals on liquidity pools.

Trading fee: The community could vote to activate the fee switch (The fee switch diverts 0.05% of the swap fees (0.3% per transaction) to a specific address to provide funds to support future development. There will be a 90-day timelock delay after enabling or disabling.).

Development Plans for 2021

Launch PNG on as many CEX (Centralized trading platforms) as possible.

Support PNG’s staking services.

Redesign UX (User’s Interface).

Increase the liquidity mining rewards during PNG trading.

Improve the governance system, reduce the processing time of chains, increase flexibility.

Build more partnerships to support Avalanche and DeFi’s development.

Support cross-chain services.

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Evelyn Zhang

Evelyn Zhang

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