PBAR Litepaper
Introduction
Pangolin
Pangolin is a decentralized exchange (DEX) using the same automated market-making (AMM) model as Uniswap V2*, which utilizes the constant product formula.
Pangolin was launched in February 2021 as a proven concept for AMMs native to the Avalanche network.
Pangolin DAO’s mission is to create a chain-agnostic exchange utilizing blockchains with low transaction costs, high transaction speed, and the bridge infrastructure for a cross-chain future. In this regard, Pangolin will launch on the Hedera network. Pangolin will also feature a native governance token on the Hedera network called PBAR.
Hedera
What is Hedera?
Hedera is a public permissioned (but leaderless) proof-of-stake network for building and deploying decentralized applications and microservices. Powered by the hashgraph consensus algorithm, the ledger offers high throughput, fair ordering, and low-latency finality. The Hedera network has officially committed to carbon-negative network operations.
The mainnet is comprised of permissioned consensus nodes and permissionless mirror nodes.
Hedera network services are a set of APIs that include the token, consensus, smart contract, and file services. Each API has a predictable transaction fee denominated in USD based on the processing and storage required, and Hedera SDKs make it easy to access the API with popular programming languages like JavaScript, Java, and Go.
For more information on the Hedera Network: https://hedera.com/
Cross-Chain Strategy
Pangolin is chain agnostic and believes in a multi-chain future. Pangolin’s multi-chain strategy is shaped by current limitations of the blockchain/bridging technology as well as the analysis of leading DEXs.
The currently existing bridging infrastructure doesn’t allow Pangolin tokens issued on the other ecosystems to be used on Hedera. In addition, due to the insecurity of the current interaction of bridges, a new token for Pangolin’s new franchises is a more secure solution.
Some multi-chain DEXs have already launched in several chains with different strategies. Many of these DEXs have encountered issues competing with native exchanges and have spread their tokens across multiple chains. Learning from such examples, Pangolin will have a new token on each chain, enabling chain-specific governance and emissions. Partnerships with local projects are also a key component of the strategy to embed Pangolin in different chains. Pangolin.exchange will be the website for all blockchains Pangolin expands to, creating synergy among different Pangolin franchises.
Features & Product Overview
Pangolin Hedera offers a variety of features and products for users:
Token swaps: Trade any token on the Hedera network for another token.
Liquidity pools & farms: Provide liquidity to the pools to earn swap fees proportional to the share of the pool & provide liquidity to the farms to earn additional reward tokens.
Novel incentive mechanism called “Sunshine and Rainbows” (SAR): Users get more rewards as long as they are not claimed while allowing users to compound rewards without sacrificing their initial stake.
Single-sided liquidity provision (such as PBAR): Deposit tokens into single-sided pools that are available to earn reward tokens.
Governance: Vote on governance proposals using the SAR NFTs obtained by staking the governance token, PBAR.
Analytics: Get more insight about the tokens, pools, the exchange’s volume, TVL, and track portfolio.
PBAR Token’s Use Cases
PBAR is a governance token. It can be used for:
creating NFT positions to participate in governance by voting on proposals.
PBAR is not backed by any monetary value. PBAR’s value is in determining the protocol’s direction.
Tokenomics
PBAR Token Distribution & Distribution Breakdown
Total Supply: 230,000,000 PBAR
Months to emit: 30 months
PBAR’s distribution breakdown is as follows:
Liquidity providers: 63.1% (no cliff, continuous vesting for 30 months)
Treasury: 15% (3 months cliff, with continuous vesting thereafter for 27 months)
Protocol-owned liquidity: 4.4%
Marketing: 0.5%
Contributors: 15% (12 months cliff, with continuous vesting thereafter for 18 months)
Advisors: 2% (12 months cliff, with continuous vesting thereafter for 18 months)
Pangolin takes regulatory compliance seriously and has not raised and will not raise any funds via a private sale, public sale, ICO, IDO or IEO.
Token Vesting Schedule
Token emissions will start in January 2023 and will end in July 2025. Zero PBAR tokens will be emitted by the end of July 2025. Below are the emission schedule and emission rates for PBAR token.
Protocol Fees
For every swap made on Pangolin, 0.3% transaction fee is charged all of which will be shared among liquidity providers. The 0.3% fee is set forth by Uniswap V2’s smart contracts which Pangolin Hedera will also use.
Governance
Pangolin Exchange is run by Pangolin DAO. Decisions that may impact the future development of the platform and its treasury may be decided via governance proposals. In particular, any smart contract upgrades and/or changes to smart contracts may be subject to governance vote. In addition, every six months, expenditures for the next six months are planned to be put to governance vote to manage the budget. SAR NFTs holders can vote for or against governance proposals given they have PBAR staked in their NFT positions.
Once Pangolin’s own custom governance for Hedera is implemented, on-chain governance will be introduced.
Conclusion
Pangolin Exchange has been restructured for a multi-chain future. Building off the strength of the Uniswap V2 contracts, the contributors have built infrastructure for multi-VM capabilities, cross-chain interoperability, and features like portfolio management and token watchlists. With the rise of new blockchains, novel technology, and a growing user base, Pangolin Exchange will be at the forefront of every chain where it deploys.
*Uniswap v2 Whitepaper: https://uniswap.org/whitepaper.pdf
Disclaimer
This paper is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment, including the PBAR token, and should not be used to evaluate the merits of making any investment decision. This paper should not be relied upon for accounting, legal, tax advice or investment recommendations. This paper reflects the current opinions of the authors and is not made on behalf of the developer community of Pangolin or its affiliates and does not necessarily reflect the opinions of Pangolin's developer community, its affiliates or individuals associated with such community. The opinions reflected herein are subject to change without being updated.
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