Pangolin, a decentralized community exchange for (AVAX/ETH) assets, offers quick settlements, low transaction fees and democratic distribution. Olympus announced that they have entered into a formal partnership in order to develop a unique bonding program with Olympus.

Pangolin’s partnership with Olympus Pro Bond Marketplace means that it is now one of the most active DEX on AVAX. It can execute a bonding programme, which allows it to control its liquidity in key markets. Users can exchange Pangolin governance tokens (PNG), their liquidity provider tokens (LP) for bonding at a reduced rate. Pangolin does not sell these tokens and ensures that liquidity stays in its Treasury.

This process ensures that the Pangolin protocol does not remain at the mercy yield farmers, whose interests often conflict with those of the protocol’s goals. Pangolin can instead ensure the stability of its key tokens, providing security and liquidity for its users. Pangolin also enjoys a lower volatility, which reduces the risk of users. This increases long-term revenue for Pangolin and allows for faster innovation.

The bond solves a variety of liquidity problems for protocols. Traditionally, bonds have been used to encourage LPs by setting aside large amounts of native token supply. It causes significant selling pressure for farm tokens as well as goal misalignment among protocols and LPs. LPs are motivated by higher reward rates than the success rate of the protocol. When protocols succeed, another disincentive can occur due to the native token’s appreciation, leading to an impermanent loss scenario for LPs. In uncertain times, LPs may look to take liquidity out of the pool when it is most necessary.

Pangolin’s bonding program in partnership with Olympus eliminates those risks. Pangolin’s bonding program will allow users to be incentivised with discounted tokens. This is to ensure the success of Pangolin. Pangolin’s liquidity will increase, making it more able to support large trades, maintain price stability and protect its users against mass exits. Pangolin can now generate additional revenue from captured liquidity fees as well as innovate through its own platform.

Pangolin will be the first AVAX project offering bonds. The partnership with Olympus ADAO will increase Pangolin’s visibility. The bonds of Pangolin will be listed on Olympus Pro X’s bond marketplace. It is a Top 100 Global Project. Moreover, Pangolin will gain access to Olympus DAO’s experienced policy and marketing teams to raise awareness and ensure the success and long-term maintenance of the initiative.

Continue reading on DailyCoin