Welcome to this post, where we are going to see how Pangolin works, the biggest DEFI Exchange of the Avalanche network and everything it has to offer.
Pangolin is a DEFI Exchange of the Avalanche network, being the most used today, as the pancakeswap of the binance Smart chain.
For this, I am going to use the metamask wallet. Where we must configure the Avalanche network if it does not appear. If when you click on networks it does not appear, go to settings, networks and copy the data that you can find below:
Network Name: Avalanche Network
New RPC URL: https://api.avax.network/ext/bc/C/rpc
With the Avalanche network set up, the next step is to have Avalanche in our wallet to be able to pay the commissions and use pangolin and any aspect of this network. For this, the best option is to buy Avalanche in Binance and withdraw it to our Metamask wallet. If you don’t know how to withdraw Avalanche from Binance to your wallet, I leave here a step by step guide on how to do it.
If you don’t have an account with binance, and you want to follow all the steps to buy Avalanche and use Pangolin, you can create your account just below.
There is a bridge if you have funds in your ethereum network to pass them to your Avalanche wallet. You can find it at bridge.avax.network, although the most economical option in terms of commissions is to use binance to buy Avalanche and send it to your wallet.
Another option to buy Avalanche offered by the Pangolin Exchange itself is Buy. Here, you can buy directly with FIAT or your currency, using your credit card or bank transfer Avalanche to your Metamask wallet thanks to Wyre. It is a very convenient option, and a bit more expensive in terms of commissions, but simpler if you want to avoid having to withdraw Avalanche from Binance to your wallet.
With Avalanche in our wallet, we can start to see how Pangolin works. The main function like all defi exchanges is the swap, which allows us to exchange any cryptocurrency in the Avalanche network for another one. Although first we must connect our wallet at the top right, clicking on connect and confirming in our wallet.
In from indicate the cryptocurrency you want to use and in to the cryptocurrency you want to get. Chances are that if you search for the name you will get the cryptocurrency. If not, copy the contract from the Avalanche network to see if it detects it. Once you check that everything is correct, click on swap and confirm the transaction in the wallet and you will have the tokens exchanged. The commission is really low, as you can see in the AVAX explorer.
Let’s see the pool part. Here, you can create an LP token and provide liquidity to Pangolin in exchange for an annual % of that LP Token. This is a way to passively generate more tokens, although it has the risk of impermement loss. To provide liquidity, simply click on add liquidity and indicate the two cryptocurrencies you want to use. Confirm the transaction in metamask and you will have your LP token to provide liquidity.
We continue with PNG. Here, you can find all the pairs to stake with LP and the annual percentage that they give for staking these LP’s. As you can see, there is a large amount with many different pairs for farming, so you can find the pair that you like the most and suits your risk/reward. The returns are quite high, as avalanche is a somewhat new network despite the great popularity it has had lately. Staking rewards are received in Pangolin (PNG) instead of the LP token itself as in other platforms, so it is an aspect to take into account. To know when to sell staking rewards and not lose value if the Pangolin price drops.
Some of the best pairs for me are AVAX-USDT, AVAX-USDC OR AVAX-DAI being LP tokens with a stablecoin, which reduces the risk of impermanent loss and Avalanche being the network cryptocurrency, where it is very likely to continue growing, if the network also grows. There are also other interesting pairs with higher annual %, but also with some more risk, having two tokens where the price fluctuates.
Like many protocols, it has a voting part in vote, where if you have Pangolin tokens (PNG) you can propose changes or vote on future changes to the protocol.
With this, we have already seen the main functions that pangolin has and you should know if you are new. I hope it has helped you and remember, if you don’t have an account with binance, you will be able to create one with the link below.