Pangolin uses the newly launched Avalanche-Ethereum Bridge to enable users to pursue yield opportunities with the same asset across two blockchains
Avalanche yesterday announced the launch of Pangolin, a community driven decentralised finance (DeFi) application. Pangolin is a decentralised exchange (DEX) running on the Avalanche blockchain which supports all Avalanche and Ethereum tokens.
Although it uses the same automated market making (AMM) model as Uniswap, Pangolin will be more cost and time efficient thanks to Avalanche’s low fees and sub-second transaction times. The exchange also allows liquidity providers to yield PNG, the native governance token of Pangolin, through their liquidity mining programme.
Pangolin prides itself as a fair, open and democratic project. As such, it will use a “fair launch” model for token distribution – no PNG are reserved for the team and there will be no pre-mine or early access. Instead, all tokens will be distributed to the community and Pangolin will direct trading fees (0.3%) to liquidity providers.
Pangolin will leverage the Avalanche-Ethereum Bridge (AEB) launched on Monday, which allows the seamless flow of assets between the two ecosystems. The AEB means that Pangolin is fully compatible with the assets and tooling of Ethereum, which enables a wider set of developers to innovate with new assets, as well as more closely mirroring institutional finance when it comes to capital efficiencies. What’s more, with Pangolin, DeFi users will be able to pursue yield opportunities with the same asset across two different ecosystems for the first time.
The Pangolin website has gone live, featuring information on the PNG token and tutorials for using the application. Trading and liquidity mining was due to begin at 7pm UTC yesterday, giving users enough time to review tutorials and set up their tooling. However, high volume of traffic last night caused the Avalanche wallet API nodes to go down so Pangolin delayed the app launch to ensure users would be able to access their non-custodial AVAX wallets.
This was an issue just with the public API nodes, which are centralised. The Avalanche protocol, on the other hand, continued to run smoothly. Pangolin eventually launched around 9pm last night and is already seeing liquidity of over $38 million and today’s trading volume is over $10 million so far, according to Pangolin protocol analytics.