Welcome to our comprehensive FAQ about Pangolin crypto, the decentralized exchange built on the Avalanche network. Whether you're a beginner or just curious, this guide covers the essentials: what Pangolin is, how it works, its fees, and how it compares to other DEXs.

What is Pangolin Crypto?

Pangolin is a decentralized exchange (DEX) built on the Avalanche blockchain, allowing users to trade cryptocurrencies directly from their wallets without intermediaries. It was launched in early 2021 and is named after the pangolin, a small mammal, symbolizing its role in the Avalanche ecosystem (which is named after a snow-covered mountain).

Pangolin uses an automated market maker (AMM) model, similar to Uniswap, where users provide liquidity to pools and earn fees. It is governed by its community through the PNG token, which allows holders to vote on proposals.

How does Pangolin work?

Pangolin operates as an AMM, meaning it uses smart contracts to create liquidity pools for trading pairs. Users can swap tokens by interacting with these pools, and the price is determined by a constant product formula (x*y=k).

To provide liquidity, you deposit an equal value of two tokens into a pool and receive LP tokens representing your share. In return, you earn a portion of the trading fees (0.3% per trade) proportional to your share. Liquidity providers can also earn PNG rewards when staked.

How do I use Pangolin?

To use Pangolin, you need a Web3 wallet like MetaMask or Avalanche's Core wallet, and some AVAX to pay for transaction fees. Connect your wallet to app.pangolin.exchange, select the tokens you want to swap, and confirm the transaction.

For providing liquidity, navigate to the 'Liquidity' tab, choose a pool, and deposit the required tokens. Remember to always double-check the network (Avalanche C-Chain) and keep some AVAX for gas fees.

What are the fees on Pangolin?

Pangolin charges a 0.3% trading fee on each swap, which is split: 0.25% goes to liquidity providers, and 0.05% is used to buy back PNG tokens for the treasury. There are no platform fees for swapping, only network gas fees (paid in AVAX).

Gas fees on Avalanche are notoriously low compared to Ethereum, often costing less than $0.10 per transaction, making Pangolin an attractive option for traders.

What is the PNG token used for?

The PNG token is Pangolin's governance token, allowing holders to vote on protocol changes, fee structures, and token listings. It also serves as a reward for liquidity providers and stakers.

PNG has a maximum supply of 538 million tokens, with a deflationary mechanism: a portion of trading fees is used to buy back and burn PNG, reducing supply over time. You can stake PNG to earn more PNG and participate in governance.

How is Pangolin different from Uniswap?

While Pangolin and Uniswap are both AMM-based DEXs, they operate on different blockchains: Pangolin on Avalanche, Uniswap primarily on Ethereum (and other chains). This results in significantly lower fees and faster transaction times on Pangolin.

Pangolin also has a unique 'Pangolin Perks' program that rewards users with bonuses for trading certain tokens, and it focuses on community-driven development. Uniswap has a larger ecosystem and more liquidity, but Pangolin offers a more cost-effective alternative on a high-performance chain.

What are the pros and cons of using Pangolin?

Pros:

  • Low fees and fast transactions thanks to Avalanche's high throughput.
  • Decentralized and community-governed.
  • Rewards for liquidity providers and stakers.
  • Supports a wide range of Avalanche-native tokens.

Cons:

  • Less liquidity than major DEXs like Uniswap, leading to more slippage on large trades.
  • Limited to the Avalanche ecosystem, which is smaller than Ethereum's.
  • Potential impermanent loss for liquidity providers.

Overall, Pangolin is a solid choice for Avalanche users seeking low-cost trading, but be aware of the trade-offs.

Is Pangolin safe to use?

Pangolin has undergone multiple audits by reputable firms like Peckshield and has a bug bounty program, making it relatively safe. However, as with any DeFi protocol, there are risks, including smart contract vulnerabilities and impermanent loss.

Always do your own research, use a hardware wallet for large amounts, and be cautious of phishing sites. The project's open-source nature allows for community scrutiny, but no system is completely risk-free.

Where can I buy PNG tokens?

PNG tokens can be purchased on Pangolin itself by swapping AVAX or other tokens for PNG, or on other exchanges that list PNG, such as Gate.io or KuCoin. You can also earn PNG by providing liquidity or staking.

To buy on Pangolin, connect your wallet, select AVAX as the source and PNG as the output, and confirm the swap. Ensure you have enough AVAX for gas fees.

Final Thoughts

Pangolin is a user-friendly and efficient DEX on Avalanche, offering low fees and a vibrant community. It's an excellent starting point for beginners interested in decentralized trading, especially those already using Avalanche.

As with any crypto investment, it's crucial to understand the risks and do thorough research. With its growing ecosystem and governance model, Pangolin is worth keeping an eye on in 2026.