Pangolin V3 is Audited by Paladin
PBAR Token Vesting
# Providing Liquidity How To Provide Liquidity Liquidity provision is the heart of Pangolin V3’s system, allowing users to become LPs and earn fees (and extra rewards) by depositing tokens into the pools. In Pangolin V3, LPs have much more flexibility than in V2, so this section will guide you through the process and concepts of adding liquidity with concentrated ranges. ## Adding Liquidity (Creating a Position) **What You’ll Need:** Two tokens for the pair you want to provide liquidity for (for example, AVAX and PNG), in the appropriate ratio, and some AVAX for gas fees. It’s often easiest to provide liquidity when you already hold both tokens. In v3, the key difference is that you need to specify the price range at which you want to provide liquidity. The interface will show the current market price of the pair for reference. You can set a Min Price and Max Price or select “Full Range” (which is the entire 0 to ∞ range like Uniswap v2, but less capital-efficient). A narrower range allows for higher capital efficiency, while a wider range behaves more like a traditional AMM LP. The interface will also indicate how much of your liquidity would be "in range" based on recent price volatility. {% stepper %} {% step %} **Navigate to the Pool Interface** On Pangolin’s app, go to the Pools section. Click “Add Liquidity”. {% endstep %} {% step %} **Select Token Pair and Fee Tier** Choose the two tokens you want to create a pool position for. If the pair already exists, you’ll see it; if not, Pangolin will allow you to create a new pool. Next, select the Fee Tier for your position. The interface may suggest a default fee tier, but you can change it based on your expectation of the pair’s volatility and trading activity. Remember, Pangolin’s dynamic fees can adjust the actual fee within that tier range, but this selection still determines the base fee and tick size for your position. {% endstep %} {% step %} **Set Your Price Range** Specify your price range by setting a Min Price and Max Price (or select “Full Range”), narrow the range for higher efficiency (keeping in mind your position may become inactive if the price moves out), optionally set one bound to the current price or one tick away for one-sided liquidity, and choose a reasonable range (e.g., ±20%) with the interface showing how much of your liquidity is “in range” based on recent price volatility. {% endstep %} {% step %} **Input Deposit Amounts** Enter the amounts of tokens you want to deposit. Once you set the range, Pangolin will calculate the required ratio of tokens for that range at the current price. For example, if you set a range symmetric around the current price, you will need roughly a 50/50 value split of the two tokens (similar to v2). If you skew the range above or below the current price, you might supply more of one token than the other. The UI will indicate how much of each token is needed. If you don’t have enough of one token, you can adjust the amounts or range until it matches your wallet balances. Pangolin will also show your expected pool token NFT details, like the amount of liquidity (a number L) you’ll be contributing. {% endstep %} {% step %} **Approve and Supply** If this is your first time adding liquidity for either token, you’ll need to approve that token for use by the Pangolin smart contract (this is an on-chain approval, done by clicking an “Approve \[Token]” button and confirming in your wallet). After approvals, click “Supply” (or “Add Liquidity”) and confirm the transaction in your wallet. Adding liquidity is an on-chain action that will mint your LP position NFT and deposit your tokens into the pool. After a short moment, the transaction will confirm and your liquidity is now added. {% endstep %} {% endstepper %} ## What's next? Once you’ve added liquidity, Pangolin will provide you a confirmation and show your new LP Position. You are now an LP in that pool between the price bounds you set. As trades occur in the pool, if the price is within your range, your liquidity will be used and you’ll earn a portion of the fees proportional to your share of the pool liquidity. Fees earned automatically accrue in your position – you can think of it as your deposit amounts accumulating extra tokens from fees over time. These fees can be claimed when you remove liquidity or adjust via the interface. You can add multiple liquidity positions for different ranges or pairs. Each position is independent. Pangolin’s dashboard will list all your positions, with details like current value, range, fees earned, etc., so you can monitor them easily. # Managing Liquidity Positions Managing And Strategies {% hint style="info" %} Providing liquidity in Pangolin V3 is not a “set-and-forget” forever operation (unless you choose an extremely wide range). You’ll want to manage your position actively. {% endhint %} ### Monitoring Price vs. Range Keep an eye on the current price of your pool’s pair relative to your chosen range. The Pangolin interface will typically indicate if your position is “in range” (earning fees) or “out of range” (price has moved outside your bounds). If out of range, your liquidity is essentially all concentrated into one of the two tokens (whichever side it exited on) and is no longer generating fees until the price moves back into your range. You might choose to adjust your position at that point. ### Adjusting a Range Pangolin does not directly “move” an existing range (since the position is an NFT). To adjust your range, you would generally withdraw your liquidity (or a portion of it) and then re-add it with a new range that captures the current price. The dynamic range adjustment capability of Pangolin means you can respond to market volatility or new information by narrowing or widening your range anytime. For example, if a token’s volatility decreases and you expect the price to stay in a tight band, you might concentrate more narrowly to earn higher fees. If the token is about to have a major event causing volatility, you might widen your range (or even temporarily withdraw to avoid impermanent loss). ### Adding or Removing Liquidity to an Existing Position If you want to increase your liquidity in the same range (i.e., deposit more tokens into that position NFT), Pangolin’s interface may allow it by essentially minting more of the same position. If not, you can always create another position with the same range (which is effectively the same outcome of having more liquidity at that range). To decrease or partially withdraw liquidity, you can use the remove function and specify how much of your position to pull out (e.g. 50% of it). This will burn that portion of the NFT liquidity and return the underlying tokens to you. ## Strategies for Managing Liquidity Positions Being an LP in Pangolin V3 often involves a bit of strategy: You’ll earn fees when in range, but you also face impermanent loss (IL) if the price moves significantly. Impermanent loss in V3 is more dynamic – it’s essentially the opportunity cost of having one asset converted to the other as price moves. By concentrating liquidity, you earn more fees which can compensate for IL, provided the price oscillates in your range. If price runs away one-directionally outside your range, you may end up holding mostly one asset (the one that the pool converted your liquidity into). It’s recommended to manage your positions and not let them sit out of range for too long unless you intentionally want to hold the asset you’ve converted to. Pangolin provides analytics for LPs to make decisions. You can view the total liquidity in the pool and your share, the 24h volume (to gauge fee potential). Use this information to adjust your strategy. Some LPs rebalance daily or weekly; others set wider ranges to reduce the need for frequent updates. It’s up to your risk preference and market outlook. # Withdrawing Liquidity How To Withdraw Liquidity At any point, you can withdraw your liquidity from Pangolin V3, partially or fully. Removing liquidity will return your share of the pool’s tokens back to you, along with any fees earned by your liquidity up to that moment. ## How to remove? {% stepper %} {% step %} **Open Your Position** In the Pangolin interface, go to Pool page and My Positions and select the specific position you want to remove from. It will show an option to Remove Liquidity. {% endstep %} {% step %} **Choose Amount to Remove** You can usually use a slider or input a percentage (e.g. 100% to fully withdraw, or a smaller percentage to do a partial withdrawal). Pangolin will display how much of each token you are estimated to receive. If your position is currently in range, those amounts include the fees you earned (which are in the form of the two tokens). If your position is out of range, you’ll mostly receive one token (the one in which liquidity ended up) and perhaps some residual of the other. {% endstep %} {% step %} **Confirm and Withdraw** After specifying the amount, confirm the removal. Once confirmed, the tokens will be transferred back to your wallet. Your NFT position will either be destroyed (if you removed 100%) or updated to reflect the remaining liquidity (if you did a partial removal). {% endstep %} {% endstepper %} After withdrawal, you have your tokens back and you stop earning fees from that position. You can always **re-add** liquidity again if you choose. It’s often wise to withdraw if you no longer want to maintain a position or before a big event if you want to avoid impermanent loss. # Earning Rewards Fees, Rewards, And In-Range Farming One of the main motivations to provide liquidity is to earn trading fees and any additional incentives. Pangolin V3 offers multiple layers of earnings for LPs: ## Trading Fees As covered, whenever traders swap through your liquidity range, you earn fees. These fees accrue in real-time to your position. The fee rate is dynamic, but you get your share of whatever fees are taken from trades. Over time, as volume flows through your range, you’ll see your position accumulate more of each token. You can claim these by withdrawing as noted. The effective **fee APR** (annualized percentage yield from fees) will depend on trading volume and your range width – narrower, well-utilized ranges can earn very high APRs, whereas very wide ranges earn less (similar to v2). Pangolin V3’s dynamic fee means in volatile times the APR might spike (higher fees), helping offset impermanent loss. ## Liquidity Mining Rewards (Superpools) Pangolin often runs liquidity mining programs to distribute PNG tokens (and sometimes AVAX and also partner project tokens) to LPs of specific pools. In Pangolin V3, this takes the form of **Superpools**, where a pool can offer additional rewards to LPs. Rewards are typically distributed per second and can be claimed periodically. Pangolin V3’s farm rewards often require your liquidity to be **in range** to qualify (this is the essence of “in-range farming”).\ \ This means if your position goes out of the incentivized range, it may pause earning extra bonus rewards until it’s back in range, ensuring that only active liquidity is rewarded. Always check the farm details: the UI will indicate the **current APR** from rewards and any conditions. With Superpools, some pools may even give two types of tokens as reward (e.g., PNG + AVAX or another token), greatly boosting the yield. ## Compound Your Earnings Over time, you might want to compound your earnings for maximum yield. This could mean claiming your earned PNG (and other tokens) and either staking the PNG in Pangolin’s PNG staking (for governance or more rewards) or swapping those rewards to add more liquidity to your position. Compounding fees can be done by simply reinvesting – for example, use the accumulated fees (which are in the pool tokens) to add to your position, increasing your liquidity and therefore future fee earnings. Be mindful of gas costs when compounding, but on Avalanche they are relatively low. # Strategies for Maximizing Rewards Maximize Your Returns To get the most out of Pangolin V3 as an LP, consider some best practices (many of which align with Uniswap v3 LP strategies): ### Concentrate Liquidity Strategically Provide liquidity in narrower ranges around the current price where trading is heaviest to earn a larger share of fees. The more you concentrate (within reason), the higher fee APR you can achieve for a given capital. For instance, concentrating in a 10% price band rather than 50% band can significantly amplify your fee earnings – just be prepared to adjust if the price moves. ### Monitor Market Conditions Keep an eye on the token’s volatility and trend. In a **low-volatility** regime, a tight range can consistently capture trades and earn fees with minimal adjustment. In a **trending market**, you may need to move your range along with the price (or temporarily widen it). Also watch overall DEX volume – during high-volume days, being in range is extra lucrative. Pangolin’s dynamic fees will also increase during high volatility, which can mean higher earnings if you stay in range during those times. ### Adjust Ranges Regularly Rather than set and forget, **reassess your range periodically**. If price has drifted toward one edge of your range, you might proactively move the range to recenter around the current price to keep your liquidity active. Some LPs adjust daily, others when price changes by a certain percent. Find a balance between too frequent adjustments (which incur gas fees and possibly realizations of IL) and too infrequent (losing fee opportunities). ### Utilize Range Orders for Rebalancing By following these strategies, you can enhance your earnings while providing valuable liquidity to the exchange. Pangolin V3’s design empowers LPs to take an active role in liquidity management. It’s a more engaging process than the passive LPing of earlier AMMs, but with the potential for higher rewards as a result. Remember that all LPing involves some risk, and only supply liquidity for projects you believe in and assets you’re willing to hold. ### Diversify Across Pools You can provide liquidity to multiple pools or multiple ranges. This can diversify your risks. Perhaps split your portfolio: some in a stablecoin-stablecoin pool (low risk, moderate yield), some in a volatile pool like AVAX-PNG but in a narrower range (higher risk, high yield). Diversification can help ensure that even if one position goes out of range or suffers IL, another is still earning. ### Stay Informed on Incentives Pangolin’s farming incentives can change (new pools added, rewards rates updated). Stay updated via Pangolin’s announcements or the farm page. Shifting your liquidity to a pool with a generous Superpool can greatly boost your overall yield. For example, if PNG rewards are high for an AVAX-USDt pool, it might outweigh the slightly lower trading fees there. ### Impermanent Loss Awareness Continuously evaluate if the fees + rewards you earn are outweighing impermanent loss. There are community calculators and tools that help estimate IL vs fees for Uniswap v3 style positions – these can be used for Pangolin V3 as well. If a position is no longer profitable, don’t hesitate to reduce exposure. *** By following these strategies, you can enhance your earnings while providing valuable liquidity to the exchange. Pangolin V3’s design empowers LPs to take an active role in liquidity management. It’s a more engaging process than the passive LPing of earlier AMMs, but with the potential for higher rewards as a result. Remember that all LPing involves some risk, and only supply liquidity for projects you believe in and assets you’re willing to hold.
# Understanding SAR Sunshine And Rainbows Algorithm Explained {% hint style="info" %} Sunshine and Rainbows (SAR) is an innovative farming-staking algorithm created by Pangolin DAO. It addresses the issue of attracting stable liquidity, which is a common challenge faced by decentralized exchanges (DEXs). {% endhint %} ## How do rewards work? In contrast to other protocols that require long-term fund lockups or staking governance tokens, Pangolin has developed a game-theoretic algorithm. The advertised APRs on Pangolin's website are average figures; actual APRs start at zero and increase over time, potentially surpassing the average. Claiming rewards or removing liquidity resets the APR back to **zero**. Users can compound their rewards to the farms and the staking pool. When compounding, the APR decreases proportionally to the compounded amount compared to the position size. Users must match the other side of the PBAR rewards to compound if they are not staking. ## How does compounding work? ### LP Farms that contain PBAR: Users can compound within that same farm, but must add equal value of the other token in the pair. ### LP Farms that do not contain PBAR: Users must compound to the PBAR-HBAR farm and add equal value of HBAR to their PBAR rewards. Also, they must remove liquidity from the PBAR-HBAR far before withdrawing from the non-PBAR farm. ### Single Sided Staking: Users can compound to their NFT, which represents their staking position. When you compound your rewards, your APR will go down proportionally to the amount compounded compared to your position size. It’s important to note for farms, you’ll need to match the other side of PBAR rewards to compound. Assuming nobody enters or leaves the farm, your APR would go down if other LPs compound, but you don’t since your share in the farm would go down over time. Here is the formula for how your share from the rewards is calculated:
Airdrops auto staked as NFT
Not selected position
Selected position
Start a new staking position by clicking on START
Enter an amount of PSB you want to stake
Check summary and confirm
Claim your rewards or Compound them into your position
Compound your rewards directly into your position
Add PSB to your staked position
Unstake your SAR NFT position
| Title | Contract Address |
|---|---|
| PangolinV3Factory | 0x1128F23D0bc0A8396E9FBC3c0c68f5EA228B8256 |
| NFTDescriptor | 0xB87a8aD1c1217EC587474b348b848dF564D505aa |
| NonfungibleTokenPositionDescriptor | 0x7528B8Ae60084577B0774A4e225BC4C3DeA7E315 |
| NonfungiblePositionManager | 0xf40937279F38D0c1f97aFA5919F1cB3cB7f06A7F |
| SwapRouter | 0x5485A0751a249225D3bA2f6f296551507e22547f |
| PangolinV3Migrator | 0x27eCB0391ad611Bbd9dd5e7e8A19db3fCAe41ab8 |
| PangolinV3InterfaceMulticall | 0x7d115C1fb6152C5Aed1750183Ae59107160694a2 |
| PangolinV3Quoter | 0xA86522CCc412dBC4FA10991900FE46De95983822 |
| TickLens | 0x5DFe6DB0F904A27a52f543Afd6B690784a44CaC1 |
| Contract | Address |
|---|---|
| PNG Token | 0x60781C2586D68229fde47564546784ab3fACA982 |
| PNG Staking | 0x88afdaE1a9F58Da3E68584421937E5F564A0135b |
| Minichef v2 | 0x1f806f7C8dED893fd3caE279191ad7Aa3798E928 |
| LPool Manager (deprecated) | 0x05191198A2047c1Ad440161123B29e839B219476 |
| LPool Manager v2 | 0x912b5D41656048Ef681eFa9D32488a3fFE397994 |
| Pangolin Factory | 0xefa94DE7a4656D787667C749f7E1223D71E9FD88 |
| Pangolin Router | 0xE54Ca86531e17Ef3616d22Ca28b0D458b6C89106 |
| Factory Testnet | 0xE4A575550C2b460d2307b82dCd7aFe84AD1484dd |
| Router Testnet | 0x2D99ABD9008Dc933ff5c0CD271B88309593aB921 |
| Airdrop | 0x0C58C2041da4CfCcF5818Bbe3b66DBC23B3902d9 |
| Contract | Address |
|---|---|
| Vote Calculator | 0xAE9D046c27A824dE4B5BABEA75D0754132664d9F |
| Governor Alpha | 0xb0Ff2b1047d9E8d294c2eD798faE3fA817F43Ee1 |
| Timelock | 0xEB5c91bE6Dbfd30cf616127C2EA823C64e4b1ff8 |
| Contract | Address |
|---|---|
| Multisig Wallet | 0xA4cB6e1971Ed8A1F76d9e8d50A5FC56DFA5cc1e6 |
| Multisig Voting Wallet | 0x6cdD4B54562019902C03e5BE4BB4C5800A379185 |
| Multisig Working Capital | 0x8d2e504087f081A41727A10e193F0d656BBF51F2 |
| Fee Collector | 0xAc61FD938E762357eEe739EB30938783366f43a7 |
| Multisig SwapFees (deprecated) | 0x7491158583ccb44a4678b3D1eCCC1f41aeD10a1F |
| Community Treasury | 0x650f5865541f6D68BdDFE977dB933C293EA72358 |
| Treasury Vester | 0x6747AC215dAFfeE03a42F49FebB6ab448E12acEe |
| Contract | Address |
|---|---|
| PangolinV3Factory | 0x44805F92db5bB31B54632A55fc4b2B7E885B0e0e |
| NFTDescriptor | 0xc2fc48fA4F66bBb0D06c6e22Cf4DCC304A980f18 |
| NonfungibleTokenPositionDescriptor | 0x598484525C3d7720AD1E360c5c53904FC28466D2 |
| NonfungiblePositionManager | 0x2a7F28aFB9c3ae31C914c19504171503a4888eBE |
| SwapRouter | 0x03bAB1D496a691B5D77e7614e42Eb4910719B87f |
| PangolinV3Migrator | 0x04A003FbE9571f59943cC99AC1EEAB3C33a5b137 |
| PangolinV3InterfaceMulticall | 0x0660bba74A622dEf24E9d28BA07A6c2777DA91aa |
| PangolinV3Quoter | 0x7f877ed6b9765653351f361d3e70EB2FbDeb0bCd |
| TickLens | 0xE73E3ecC006ED6fC119b46d80E5cEF23aF04025F |
| Contract | Address |
|---|---|
| PBAR Token | 0x00000000000000000000000000000000001a88b2 |
| WHBAR Token | 0x00000000000000000000000000000000001a8837 |
| PBAR Staking | 0x00000000000000000000000000000000001a8957 |
| PangoChef | 0x00000000000000000000000000000000001a88db |
| Pangolin Factory | 0x00000000000000000000000000000000001a88bc |
| Pangolin Router | 0x00000000000000000000000000000000001a88c9 |
| Factory Testnet | 0x0000000000000000000000000000000000000748 |
| Router Testnet | 0x000000000000000000000000000000000000074b |
| Contract | Address |
|---|---|
| Multisig Wallet | 0x00000000000000000000000000000000001a7e7e |
| Community Treasury | 0x00000000000000000000000000000000001a88b5 |
| Contract | Address |
|---|---|
| PFL Token | 0xB5010D5Eb31AA8776b52C7394B76D6d627501C73 |
| PFL Staking | 0x12245B3Fe351ec3BE15EF971f31927Af1292Ff40 |
| PangoChef | 0xe19a6a2253B40F884FcaE7945C3edbB5AAf8cb60 |
| Pangolin Factory | 0xbfe13753156b9c6b2818FB45ff3D2392ea43d79A |
| Pangolin Router | 0xA981cb468c87Ed32F37dE546e25a7c5FF17e2308 |
| Factory Testnet (Coston2) | 0x4a2ba0812a92c78b3975bA25509b08b49972dFFa |
| Router Testnet (Coston2) | 0x1435422E3765898D3bD167DC06b36e9a8AEf4784 |
| Merkle Airdrop | 0x290593624b60D5c8EBf329344343d2cD21c46Cf3 |
| Contract | Address |
|---|---|
| Multisig Wallet | 0xE688399009a1c283FAD889d3cedF6FfF4D685d51 |
| Community Treasury | 0x5d29aDabe7a49cB27a2c8d2Db62814B88F25501c |
| Contract | Address |
|---|---|
| PSB Token | 0xb2987753D1561570f726Aa373F48E77e27aa5FF4 |
| PSB Staking | 0x7428A089A79B24400a620F1Cbf8bd0526cFae777 |
| PangoChef | 0x76489156Fff6f4B89626f58386366941150642B7 |
| Pangolin Factory | 0xB66E62b25c42D55655a82F8ebf699f2266f329FB |
| Pangolin Router | 0x6591cf4E1CfDDEcB4Aa5946c033596635Ba6FB0F |
| Factory Testnet (Coston1) | 0xa5D4D920cea39f0344A99b2a3c4597E10DA16D88 |
| Router Testnet (Coston1) | 0x6a6C605700f477E56B9542Ca2a3D68B9A7edf599 |
| Merkle Airdrop | 0x3B8377E6a9d527b4587F251bce706b53DAC26cf6 |
| Merkle Airdrop (Reimbursement) | 0x78407686458ACf7FceA53Cf73697d0ff51052ca6 |
| Contract | Address |
|---|---|
| Multisig Wallet | 0xe18dFC20edE326930d11b3316E92bdC1F606dc94 |
| Community Treasury | 0xA2e6eFFdbb278744E286F602Bfaa2BcDAccBb1AA |
| PNG and DEX Values on Avalanche | /files/ebdxgt8Po5WX3SBrxLol |
| PBAR and DEX Values on Hedera | /files/kmTsjPRajs0aB2TFKy5O |
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"decimals": 18,
"name": "Pangolin",
"symbol": "PNG",
"logoURI": "https://raw.githubusercontent.com/pangolindex/tokens/main/assets/43114/0x60781C2586D68229fde47564546784ab3fACA982/logo.png"
}