Pangolin is a decentralized exchange (DEX) built on the Avalanche blockchain. It allows users to trade cryptocurrencies directly from their wallets without the need for intermediaries. Pangolin was founded in 2020 by Avalanche, a company dedicated to developing decentralized applications (dApps) on their blockchain network. The name "Pangolin" comes from the anteater-like creature known for its armored scales, symbolizing the DEX's security and protection of user funds. Key features include low fees, fast transactions, and liquidity incentives.
Pangolin is a decentralized exchange (DEX) built on the Avalanche network, offering several benefits compared to its direct competitors.
One of the key advantages of Pangolin is its low transaction fees. The platform operates on Avalanche, which boasts significantly lower fees compared to other popular blockchains like Ethereum. This makes Pangolin an attractive choice for users seeking cost-effective transactions.
Another benefit is the speed and efficiency of Pangolin's platform. Avalanche's high throughput allows for fast and seamless transactions, ensuring a smooth user experience. This sets Pangolin apart from its competitors, as users can enjoy quick and efficient trading without experiencing the congestion often associated with other DEXs.
Pangolin also offers a wide range of tokens for trading. Its extensive token selection ensures that users have access to a diverse set of assets, including popular cryptocurrencies and emerging tokens. This gives traders greater flexibility and opportunities for diversification compared to its competitors.
Furthermore, Pangolin provides a user-friendly interface and simple onboarding process. The platform is designed to be intuitive and accessible, making it easier for both experienced and novice users to navigate and engage in decentralized trading.
In summary, Pangolin's benefits, including low fees, fast transactions, a diverse token selection, and user-friendly interface, distinguish it from its competitors. These advantages position Pangolin as a strong contender in the decentralized exchange space.
Pangolin is an automated market maker (AMM) built on the Avalanche blockchain. The underlying technology used by Pangolin is similar to other popular decentralized exchanges (DEXs) like Uniswap and SushiSwap, but with a focus on the Avalanche ecosystem.
Pangolin operates using a liquidity pool model, where users can contribute their assets to trading pairs and earn fees by providing liquidity. The platform utilizes smart contracts to automate the trading process and enable peer-to-peer swapping of cryptocurrencies.
At its core, Pangolin relies on the Avalanche consensus mechanism to secure transactions and validate trades. Avalanche uses a unique consensus protocol called the Avalanche protocol, which employs a combination of network participants (validators and stakers) to achieve consensus. This protocol allows for fast and secure transactions with minimal fees.
When a user wants to make a trade on Pangolin, the smart contract executes a series of steps. First, it checks the liquidity pool to ensure sufficient funds are available for the trade. Then, it calculates the exchange rate based on the current pool ratios. The trade is executed, and the liquidity pool is updated accordingly. The fees generated from trades are distributed to liquidity providers in proportion to their contributions.
Pangolin also incorporates yield farming and staking features, allowing users to earn additional rewards by locking up their assets or participating in governance activities. This incentivizes participation and provides a mechanism for users to actively engage with the platform.
Overall, Pangolin offers a decentralized and efficient way for users to trade cryptocurrencies on the Avalanche blockchain, utilizing the power of smart contracts and the innovative Avalanche consensus mechanism.
DIA takes a comprehensive approach to data management for fetching trade data from various DeFi and NFT exchanges. The process of extracting data differs depending on the type of exchange being considered.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA utilizes specialized scrapers that directly collect trade information from the exchange databases. This is done using Rest APIs or WebSocket APIs. The frequency of data collection varies from one to seven seconds, depending on the exchange. By retrieving the data as close to the source as possible, DIA ensures high precision and real-time availability.
In contrast, for decentralized exchanges (DEXs), DIA retrieves trading data directly from the underlying blockchain. This is achieved by subscribing to swap events in the liquidity pools of DEXs. Examples of decentralized exchange sources include Uniswap, curve.finance, and PancakeSwap. By collecting data from the blockchain itself, DIA enhances data accuracy and eliminates reliance on potentially unreliable sources.
When it comes to NFT marketplaces, DIA captures live trading data from integrated marketplaces' smart contracts. The retrieval period for NFT data ranges from 20 seconds to one minute, ensuring coverage of real-time transactions. DIA's approach avoids leveraging unreliable bids and offer data, thus ensuring precision across the broader NFT market. Notable NFT integrated exchange sources include Blur, X2Y2, OpenSea, and TofuNFT.
By combining these different approaches, DIA is able to provide highly accurate and customizable price feeds for cryptocurrencies, NFTs, and other digital assets. This comprehensive data management strategy enables DIA to deliver reliable and up-to-date information to support various blockchain applications and smart contracts.
DIA employs a systematic process to compute trade data from Pangolin and build price feed oracles. The process varies depending on whether we are referring to a DeFi or NFT exchange.
For DeFi exchanges such as Pangolin, DIA implements a two-step approach. The first step involves data cleaning and outlier detection. This is crucial to ensure that the price estimation process is resilient against irregular trades that deviate from the current market price. DIA applies an Interquartile Range (IR) filter to identify and exclude data points and sets that lie outside an acceptable range relative to the interquartile range. By removing outliers, DIA prevents misaligned price data caused by low-volume trades or market manipulation.
The second step is the application of price determination methodologies. DIA utilizes trade-based filters to calculate a single price value for each asset. For example, the Volume Weighted Average Price (VWAP) methodology takes into account the varying volumes of trades. It collects all trades within a queried time range and weights them based on their volume. The accumulated volume-price-products are divided by the sum of all volumes, resulting in the VWAP.
For NFT exchanges like Pangolin, DIA follows a different process to determine the floor price of NFT collections. The first step involves applying cleansing filters to exclude market outliers and manipulation techniques. This is essential to produce market-representative prices and counteract potential manipulations, such as wash trading and floor sweeping.
DIA offers various pricing methodologies for NFT collections. The simplest mechanism is the Floor Price, which provides the lowest sale price recorded on the blockchain within a given time window. However, to address market manipulation and provide more reliable floor prices, DIA also offers advanced methodologies such as the Moving Average of Floor Price. This methodology calculates the moving average of a collection's floor price and can be customized based on specific use cases.
It's important to note that DIA is constantly open to discussing custom filters and methodologies to meet the needs of specific use cases within the blockchain ecosystem.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.