Pangolin is a decentralized exchange (DEX) built on the Avalanche blockchain, designed to deliver fast, low-cost trading through an automated market maker (AMM) model. As a community-governed platform, it empowers users with tools like limit orders, liquidity mining, and staking—all powered by its native PNG token. With Avalanche’s high throughput and EVM compatibility, Pangolin offers seamless cross-chain swaps while maintaining affordability and speed.
In this guide, we’ll explore how Pangolin works, what sets it apart from other DEXs, the role of the PNG token, and its long-term potential in the decentralized finance (DeFi) ecosystem.
What Is the Pangolin Exchange?
Pangolin Exchange launched in February 2021 as a community-driven decentralized exchange on the Avalanche network. Built using an AMM model similar to Uniswap, it enables users to swap tokens without intermediaries by leveraging liquidity pools.
The platform operates primarily on Avalanche’s C-Chain, which supports the Ethereum Virtual Machine (EVM). This compatibility allows Ethereum-based assets and wallets—like MetaMask—to interact seamlessly with Pangolin. Users can trade Avalanche-native tokens (AVAX) as well as bridged ERC-20 tokens from Ethereum.
One of Pangolin’s core strengths lies in Avalanche’s performance: capable of processing up to 4,500 transactions per second (TPS) with sub-second finality and minimal gas fees. In contrast, Ethereum typically handles only 15–30 TPS and often incurs high transaction costs during peak usage.
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This infrastructure gives Pangolin a significant edge over Ethereum-based DEXs, making it ideal for frequent traders, arbitrageurs, and liquidity providers seeking efficiency and cost savings.
How Does the Pangolin Crypto Exchange Work?
At its core, Pangolin uses automated market makers (AMMs) to facilitate trades. Instead of relying on order books like centralized exchanges, it relies on smart contracts that manage liquidity pools funded by users.
When traders want to swap tokens, they interact directly with these pools. For every trade executed, a small fee is collected and distributed among liquidity providers, stakers, and the protocol treasury.
Here are the key functions available on Pangolin:
Swap Tokens
Swapping is straightforward: users select their input and output tokens, approve the transaction via their wallet (e.g., MetaMask), and confirm the swap. Thanks to Avalanche’s speed, most transactions settle within seconds.
Provide Liquidity
To become a liquidity provider (LP), users deposit two tokens into a pool—such as AVAX/USDC or PNG/ETH. In return, they receive LP tokens representing their share of the pool and earn a portion of the 0.3% swap fee.
Farm and Stake
Liquidity providers can further boost returns by staking their LP tokens in “Super Farms,” where they earn additional PNG rewards. Staking PNG directly also yields returns—historically around 24% APR—for those who prefer passive income without managing liquidity pairs.
Bridge Assets
Using the Avalanche Bridge (AB), users can transfer ERC-20 tokens between Ethereum and Avalanche. This opens access to a broader range of DeFi opportunities while benefiting from lower fees on Avalanche.
What Makes Pangolin Unique?
While many DEXs follow the Uniswap blueprint, Pangolin enhances the model with several innovative features tailored for the Avalanche ecosystem.
Limit Orders
Unlike most AMMs that only support instant swaps, Pangolin allows users to set limit orders—a feature typically found on centralized exchanges. This lets traders specify exact prices at which they want to buy or sell assets, improving control and enabling strategic entry/exit points.
Super Farms
Super Farms are incentivized yield farms that distribute PNG rewards to users providing liquidity in specific pools. These farms often include partner tokens like LOST (Lost Worlds), KLO (Kalao), and HEC (Heroes Chained), creating cross-project synergies and boosting overall liquidity.
Transparent Fee Distribution
Each 0.3% swap fee is split transparently:
- 0.25% to liquidity providers
- 0.0425% to PNG stakers
- 0.0075% to the Pangolin DAO treasury
This structure ensures multiple stakeholders benefit from platform activity.
Community Governance
As a decentralized autonomous organization (DAO), all major decisions—from fee adjustments to new farm launches—are proposed and voted on by PNG holders. This ensures the platform evolves according to community interests.
Benefits of Using Pangolin
Fast and Low-Cost Transactions
Avalanche’s consensus mechanism enables near-instant transaction finality with negligible gas fees. Compared to Ethereum-based DEXs like Uniswap or SushiSwap, trading on Pangolin is significantly cheaper—especially for small-volume trades.
Wide Token Selection
Thanks to EVM compatibility and the Avalanche Bridge, users can access both native Avalanche tokens and bridged Ethereum assets. Stablecoins like USDT and USDC are readily available, enabling stable-value trading pairs.
Multi-Wallet Support
Pangolin integrates easily with popular wallets such as MetaMask, Trust Wallet, and WalletConnect. This flexibility lowers the barrier to entry for new users exploring DeFi on Avalanche.
Reduced Slippage
High throughput and deep liquidity pools help minimize slippage—especially important for larger trades. Faster transaction speeds also allow traders to capitalize on arbitrage opportunities before price discrepancies close.
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What Is the Pangolin Token (PNG)?
PNG is the native governance token of the Pangolin protocol. With a capped supply of 230 million tokens, it was fully community-distributed at launch—no allocations were reserved for team members, advisors, or private investors.
Tokenomics Overview
Initially planned as 256 million tokens over multiple emission cycles, the total supply was reduced in September 2021 to ensure long-term sustainability. Current distribution includes:
- ~83% allocated to liquidity mining rewards
- ~13% held in the community treasury for future development
- Remaining portions distributed through early airdrops and incentives
Emissions decrease over time, promoting scarcity and aligning incentives for long-term participation.
PNG Utility
Holding PNG unlocks several key functionalities:
- Governance: Vote on proposals affecting fees, farms, upgrades, and treasury use
- Staking Rewards: Earn a share of swap fees by staking PNG
- Farming Incentives: Boost yields by participating in Super Farms
- Treasury Access: Influence how DAO funds are used through voting
As DeFi continues to evolve on Avalanche, PNG remains central to shaping Pangolin’s roadmap.
Future Potential of Pangolin
With Avalanche’s growing ecosystem—including rising TVL, new dApps, and institutional adoption—Pangolin is well-positioned to remain a leading DEX on the network.
Its combination of CEX-like features (limit orders), strong yield opportunities (Super Farms), and low operational costs creates a compelling value proposition. As more users migrate from Ethereum due to high fees, platforms like Pangolin benefit from increased liquidity and trading volume.
Ongoing developments may include enhanced cross-chain functionality, NFT integration, and deeper DAO tooling—all driven by community governance.
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Frequently Asked Questions
Is Pangolin a decentralized exchange?
Yes. Pangolin is a fully decentralized exchange (DEX) built on Avalanche using an automated market maker (AMM) model. It does not require intermediaries to facilitate trades.
How do I start using Pangolin?
First, set up a compatible wallet like MetaMask and configure it for the Avalanche network. Deposit AVAX or bridged tokens, connect your wallet to pangolin.exchange, and begin swapping or providing liquidity.
Can I stake PNG tokens?
Yes. You can stake PNG directly on the platform to earn a portion of the swap fees generated by the protocol. Staking helps secure the network and supports decentralized governance.
Where can I buy PNG?
PNG is listed on several major exchanges including Coinbase and Gate.io. You can also acquire it directly on Pangolin by swapping other tokens.
Does Pangolin support limit orders?
Yes. Unlike many AMMs, Pangolin allows users to place limit orders—giving greater control over trade execution prices.
Is there a mobile app for Pangolin?
While there’s no official mobile app, you can access Pangolin through mobile browsers using supported wallets like Trust Wallet or MetaMask Mobile.
Core Keywords: Pangolin DEX, PNG token, Avalanche blockchain, decentralized exchange, AMM, liquidity mining, Super Farms, limit orders