Platform and PNG Token Litepaper – Pangolin

Introducing Pangolin and the PNG Token

PNG hero


Pangolin is a decentralize substitution ( DEX ) which runs on Avalanche, uses the lapp automated market-making ( AMM ) model as Uniswap, features a native government keepsake called PNG that is fully community distributed and is able of trading all tokens issued on Ethereum and Avalanche. In a push market with multiple contenders, Pangolin offers three critically important benefits : fast and cheap trades, community-driven development, and a fair and open token distribution .
first, Pangolin can finalize trades cursorily and cheaply. Since Pangolin is built on Avalanche, it enables users to swap assets while enjoying sub-second transaction finality and transaction fees angstrom low as a few cents. Oftentimes, trades on Pangolin will feel a fast as trades on centralize exchanges. Second, beyond the significant performance upgrades to the technical status quo, Pangolin is community-driven. The native government token, PNG, enables the community to drive the development of the merchandise in full. Third, but not least, Pangolin features a 100 % community-focused token distribution model, meaning that all tokens are distributed directly to the community, without any allocations to team, advisors, investors, or insiders .
Users of existing AMMs, such as Uniswap and Sushiswap, are already familiar with their mechanism of action. consequently, the rest of this post does not discuss how Pangolin achieves its trade capabilities. rather, we discuss the PNG token in more detail, including its distribution mechanism and administration rules .

PNG Distribution : A 100 % Community-Driven Governance Token

To reinforce the project ’ s committedness to being created entirely for the benefit of users, Pangolin is following a fair launch model with its government keepsake ( PNG ). however, while PNG will enable all the government activities of Pangolin, and therefore its future development, administration proposals will not start until three months after the launch of Pangolin. This waiting period of three months is to ensure that enough PNG is distributed to the community.

Distribution Breakdown

No PNG tokens are allocated to the team, investors, advisors, or any kind of insiders. therefore, Pangolin is wholly community-driven and entirely community-owned. PNG is capped at a issue of 538 million tokens, 100 % of which will be distributed to the community according to Chart 1. The beginning 95 % of tokens, or 512 million tokens, are dedicated to the community treasury, where they will initially be used to fund fluidity mining. The remaining 5 %, or 26 million tokens, are dedicated to a community airdrop .
PNG distribution
Chart 1. PNG distribution. 95% of the tokens are given to liquidity miners and 5% to airdrop

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Community – Liquidity Mining Allocation (95% of PNG)

The vest schedule is algorithmically specified as follows : starting from 256 M tokens for the first four years, the count of tokens distributed halves every extra four years, mean that the next four years contribute roughly a quarter, and so on. This design continues into perpetuity. For reference, during the first four years, roughly 175,342 PNG will be distributed per day to fluidity miners. The full agenda of distribution of PNG in the liquidity mining allotment is shown below :

Time Total PNG Distributed PNG / Day
0 – 4 years 256 M ~ 175 K
4 – 8 years 128 M ~ 87 K
8 – 12 years 64 M ~ 44 K
12 – 16 years 32 M ~ 22 K
16 – 20 years 16 M ~ 11 K
20 – 24 years 8 M ~ 5 K
24 – 28 years 4 M ~ 2 K

The fluidity mining program starts on mainnet launching and will cover the follow pools on pangolin :

  • AVAX Pools
    • AVAX/ETH
    • AVAX/PNG
    • AVAX/DAI
    • AVAX/UNI
    • AVAX/YFI
  • PNG Pools
    • PNG/ETH
    • PNG/USDT
    • PNG/WBTC
    • PNG/LINK
    • PNG/DAI
    • PNG/UNI
    • PNG/AAVE
    • PNG/YFI

The PNG will be allocated per consortium proportional to liquid as calculated by the entire AVAX value in the pond. In non-AVAX pools, the proportional fluidity is calculated by looking at the price of the base token in comparison to AVAX .
here ’ s an case. Suppose we only have AVAX/USDT, AVAX/PNG, and PNG/USDT pools. We are trying to calculate the proportional sum of rewards for each. now, suppose the price of AVAX is 4 USDT and 40 PNG. For the AVAX/USDT pool, there ’ s 1 AVAX of liquid, and therefore 4 USDT. For AVAX/PNG there is 1 of liquid, and therefore 40 PNG. For PNG/USDT, there ’ s 80 PNG of fluidity. To calculate the come of AVAX, we calculate that the 80 PNG of liquid equals 2 AVAX. Therefore, the final examination liquidities are 1, 1, and 2 for the three pools respectively. This entire 4 AVAX, and therefore the beginning two pools receive 25 % of the rewards, and the third base pool receives 50 % .

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Community – Airdrop Allocation (5% of PNG)

The airdrop allotment will be 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 will need to call swallow on a distribution contract. This transaction must be from the same address that holds UNI/SUSHI on Ethereum and must be sent within one calendar month of Pangolin ’ s launch. The steps are as follows :

  1. First, a user deposits SUSHI or UNI from their Ethereum address that stored tokens on December 7th, 2020, onto
    the Ethereum <> Avalanche bridge contract sitting on Ethereum.
  2. Second, the holder withdraws SUSHI or UNI from the Ethereum <> Avalanche bridge contract sitting on
    Avalanche. The withdrawal address on the Avalanche side must be the same as the address on the Ethereum side.
    This is possible since Avalanche supports Metamask and other tools out of the box, therefore Ethereum addresses
    resolve to the same Avalanche addresses.
  3. Third, and finally, the user will be able to instantly withdraw PNG.

The conversion formula from SUSHI or UNI onto PNG is not analogue, but rather slenderly quadratic. specifically, PNG will be claimable pro-rata based on the follow formula :

PNG amount = 0.3 * (SUSHI amount ^ 0.8)
PNG amount = 0.7 * (UNI amount ^ 0.8)

These conversion rates were chosen in orderliness 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 allotment — or 18.2M PNG — will be distributed to UNI holders and 30 % — or 7.8M PNG — to SUSHI holders .

PNG Governance

A large region of the value proposition of PNG ’ s administration is that it is highly community-driven. Because there are no insiders, such as investors, team members, or other such stakeholders, the development of Pangolin remains wholly up to the wide residential district. Pangolin government will be live three months after launch and will enable several key actions, including :

  • Modifications to the liquidity pools
    initially, the distribution of tokens will be entirely through the liquid mining pools listed in the previous section. The liquidity mine menstruation will remain active until the pools are altered or another community enterprise is accepted as a formal government proposal. Proposals may add and subtract fluidity mining pools or may allocate PNG directly to a user or ache contract such as a community treasury .
  • Fee switch
    The community will besides have the ability to enable the Pangolin fee switch. This fee switch can divert .05 % of all swap fees to a designate address. Swap fees will remain fixed at .30 %, but liquidity providers will lone receive at most .25 % of these fees. This provides the residential district with the opportunity to acquire extra funds to support any significant community initiatives. The Pangolin fee switch is subject to a 90-day timelock check and is disabled by default.

Read more about administration in our Governance Forum

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decision : A Public Good for Avalanche and Ethereum

In the summer of 2020, we discovered the limits of the then-current network infrastructure amidst the rocket manipulation of decentralized finance ( DeFi ) apps, and the equally shrill falls as liquidity shocks rang throughout. The resulting network congestion introduced indefensible, systemic risks and led to liquidations not from individuals without sufficient collateral, but from individuals who couldn ’ deoxythymidine monophosphate fit their collateral down payment into a forget on Ethereum. As avid users and believers in DeFi, we feel there must be back-ups and resources that avoid centralizing the closely $ 15B locked in DeFi protocols onto one network that is undergoing a significant, multi-year upgrade. furthermore, we believe that such applications require deep ownership from the community, and should be highly democratic and distributed .
Pangolin is a reception to these two critical issues that other AMMs front : subpar performance and administration controls that benefit a few big holders. With Pangolin, users will be able to enjoy centralized-exchange-like speeds without having to compromise access to their existing portfolio of assets and without having to give control to large insiders .

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