Litepaper PNG



Pangolin is a decentralized exchange (DEX) using the same automated market-making (AMM) model as Uniswap V2*, which utilizes the constant product AMM formula.
Pangolin was launched in February 2021 as a proven concept for AMMs native to the Avalanche network. Pangolin also features a native governance token on the Avalanche network called PNG.
Pangolin’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.

Avalanche Network

Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality.

Cross-Chain Strategy

Pangolin believes in a multi-chain future and is chain agnostic. Pangolin’s multi-chain strategy is shaped by current limitations of the blockchain/bridging technology and the analysis of leading DEXs.
The domain will be the website for all blockchains Pangolin will expand onto, which would create synergies among different Pangolin franchises.

Features & Product Overview

Pangolin's decentralized exchange product on Avalanche offers several services to users, including but not limited to:

Token Swaps:

Pangolin's automated market-making (AMM) model (utilizing the constant product formula: x * y = k) enables users to swap tokens on the Avalanche Network. The constant product formula defines the price curve of the particular pair to be exchanged. Naturally, the more liquidity a pair has, the lesser the price slippage is for that particular token swap. Token swaps are generally simple in nature. Pangolin requires users to specify the amount of output tokens they want to receive by virtue of the amount of input tokens they want to swap.
function swap(uint amount0Out, uint amount1Out, address to, bytes calldata data);

Liquidity Pools & Yield Farms:

Users are able to provide liquidity to Pangolin's liquidity pools on Avalanche. Users deposit liquidity by converting an equal value of both tokens into the relevant liquidity pool. Liquidity Pool Tokens ("LP Token or PGL") represent the user's contribution to the liquidity pool.
Users depositing LP Tokens (PGL) in the applicable liquidity pool earn a portion of the fees accrued by Pangolin's AMM derived from Token Swaps. Users receive rewards on a pro-rata basis in accordance with their allocation to the liquidity pool. Albeit able to accumulate rewards from liquidity provision incentives, users may also provide liquidity to Pangolin's "Farms" or "Super Farms" to earn additional reward tokens.

Incentive Token Staking:

Pangolin will provide staking incentives in regard to a variety of tokens on the platform. Users may, naturally, stake the relevant tokens and earn the corresponding rewards. Tokens may include Pangolin’s native token (PNG) or any other token capable of being used on the network.


Users may use the Pangolin token PNG to participate in a governance framework that has been implemented as also detailed below.


Pangolin provides an Analytics page detailing the following on the Avalanche network:
  • The tokens available on the platform
  • The available liquidity pools and details in regard to APR, liquidity available and LP Tokens deposited in such pools
  • Pangolin's exchange volume
  • Total Value Locked
  • The user's portfolio via Pangolin's Portfolio Tracker.

PNG Token’s Use Cases

  • Governance
  • Incentive Token Staking
  • Liquidity Provision
  • Reward
The currently existing bridging infrastructure doesn’t allow PNG tokens (Pangolin's native Avalanche Token) on the Avalanche ecosystem to be bridged and subsequently used on other chains. In addition, due to the lack of security regarding the current interaction of bridges, a new token for Pangolin’s new multi-chain approach would be a more suitable and a more secure solution.


Initial Total Supply: 538,000,000 PNG (V1 tokenomics)
Months to emit: 336 months
When it was first launched in February 2021, PNG had a 28-year emissions schedule with 538M max supply. After the proposal to change Pangolin’s tokenomics in November 2021 got approved, Pangolin V2 was launched improving PNG’s tokenomics, switching to a new 4-year emissions schedule, reducing max token supply to 230M tokens by ceasing emissions for 57% of all PNG tokens. We have achieved this by writing a proxy contract on top of our existing contracts. Below is the new total supply and the emission duration for the PNG token.
Total Supply: 230,000,000 PNG (V2 tokenomics)
Months to emit: 48 months (starting from February 2021)
You can access the submitted proposal here.

Token Distribution

When it was first launched in February 2021, PNG’s token distribution was as follows:
Liquidity providers: 95%
Airdrop: 5% (The airdrop allocation was distributed on the basis of ownership of UNI and SUSHI. In order to claim the PNG in the airdrop, UNI and SUSHI holders that had tokens on December 7th, 2020 claimed via a distribution contract. The transaction had to have been from the same address that held UNI/SUSHI on Ethereum and had to have been within one month of Pangolin’s launch.)
The conversion formula from SUSHI or UNI onto PNG is not linear, but rather slightly quadratic. Specifically, PNG will be claimable pro-rata based on the following formula:
PNG amount = 0.3 * (SUSHI amount ^ 0.8)
PNG amount = 0.7 * (UNI amount ^ 0.8)
(These conversion rates were chosen by AvaLabs in order to reduce wealth concentration onto large holders of SUSHI and UNI and redistribute more evenly onto smaller holders of SUSHI and UNI. 70% of the airdrop allocation -- or 18.2M PNG -- will be distributed to UNI holders and 30% -- or 7.8M PNG -- to SUSHI holders.)

The new distribution after the proposal was approved in November 2021 is as below:

Liquidity Providers: 83.7% (Farms v1: 15.4%, Farms v2: 68.3%)
Claimed airdrops: 3.3%
Treasury: 13%
Pangolin takes regulatory compliance seriously and has not raised and will not raise any funds via a public sale, ICO, or IEO.

Token Vesting Schedule

Token emissions began in February 2021 and will end in January 2025 (in accordance with the tokenomics update in November 2021).

Protocol Fees & Token Buybacks

For every swap made on a particular Pangolin pool, a 0.3% transaction fee is charged which will be shared among the following parties with the following breakdown:
Liquidity provides (in accordance with their share in the particular pool): 0.25%
PNG staking pool: 0.0425%
Pangolin DAO’s treasury: 0.0075%
This amount is set forth by Uniswap V2’s smart contracts which Pangolin also uses.
Initially, there were no token buybacks and the fee switch was turned off. At a later stage, however, a governance proposal took place to turn on the fee switch on Avalanche. You can access the submitted proposal here.
By enabling the fee switch, Pangolin diverts 0.05% of all swap fees to a designated address. The Pangolin fee switch is subject to a 90-day timelock delay and was disabled by default.
Governance decisions that may impact Pangolin’s future development are intended to be decided via governance proposals. In particular, any smart contract upgrades or changes to smart contracts are intended to be subject to a governance vote. In addition, every six months, expenditures for the next six months are intended to be put to a governance vote to manage the budget. PNG holders can vote for or against governance proposals. Although Pangolin has its own custom on-chain governance for Avalanche, governance proposals didn’t start until three months after the launch of Pangolin. This waiting period of three months was to ensure that enough PNG was distributed to the community.
The initial development work for Pangolin was done by AvaLabs. Until an on-chain governance was in place, Pangolin was run by AvaLabs. However, once governance was in place, initial team members were selected by the community.


Pangolin Exchange has been restructured for a multi-chain future. Building off the strength of the Uniswap V2 contracts, Pangolin has 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 will be at the forefront of every chain where it deploys.
*Uniswap v2 Whitepaper:


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 PNG 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.