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Concentrated Liquidity (V3 Pools) with in-range farm incentives
Pangolin Elixir is a decentralized exchange (DEX) designed to provide a seamless trading experience while leveraging the power of concentrated liquidity pools. It offers low slippage, high capital efficiency, and flexible fee structures for both traders and liquidity providers (LPs). In this section, we will explore the key features and benefits of Pangolin Elixir and compare it to other decentralized exchanges in the market.
Pangolin Elixir allows LPs to create custom liquidity pools with any two tokens of their choice. What sets Pangolin Elixir apart is the ability for LPs to specify the price range in which they want to provide liquidity. By concentrating their funds in specific price segments, LPs can potentially earn higher returns compared to traditional constant product pools. This approach enables LPs to adapt their liquidity provision strategies to market conditions and their risk preferences, leading to increased capital efficiency.
One of the novel features of Pangolin Elixir is its in-range farming mechanism. LPs who provide liquidity within a predefined price range are rewarded with additional tokens. The rewards can be native to the pool (such as the PNG token) or other tokens. In-range farming creates a positive feedback loop, aligning the incentives of LPs and traders. The tighter the price range LPs provide liquidity within, the greater the rewards they can earn compared to other LPs. This mechanism promotes liquidity, trading volume, and fees, contributing to a vibrant ecosystem.
Pangolin Elixir aims to provide a superior user experience in the decentralized finance (DeFi) space. With a user-friendly interface, navigating through the platform and accessing essential features becomes intuitive and efficient. Traders can execute trades with reduced slippage and price impact, thanks to the concentrated liquidity pools. LPs can easily manage their positions, adjust price ranges dynamically, and monitor their in-range farming rewards. Pangolin Elixir strives to make DeFi accessible and convenient for both experienced users and newcomers.
While there are several DEXs available in the market, Pangolin Elixir differentiates itself with its concentrated liquidity pools and in-range farming mechanism. Traditional DEXs often rely on constant product pools, which may lead to diluted liquidity and higher slippage. Pangolin Elixir's approach allows LPs to concentrate liquidity in relevant price segments, resulting in lower slippage and increased capital efficiency.
Additionally, the in-range farming mechanism introduces a unique incentive model that aligns the interests of LPs and traders. By rewarding LPs based on their price range concentration, Pangolin Elixir encourages liquidity provision and creates a dynamic ecosystem where LPs can earn additional tokens while contributing to the platform's liquidity and trading volume.
Through these key features and its commitment to a superior user experience, Pangolin Elixir aims to offer a compelling option for traders and LPs in the decentralized finance landscape.