Leading Avalanche-Ethereum decentralized exchange, Pangolin has collaborated with Olympus DAO. The collaboration, among other things, is to create a bonding program and create further inroads in marketing efforts.
The collaboration has brought the World's first bonding program on Avalanche (AVAX). Under the bonding program, users would trade for Pangolin governance tokens (PNG) Liquidity Provider (LP) tokens. The trade would occur at a concession to regular rates. Pangolin won't sell them. But would lock them in Olympus' Bond Treasury.
Bonding Programs Come With Many Benefits
Bond programs create far more benefits for decentralized finance (DeFi) institutions than the eye can see.
One of these benefits is the control of liquidity. DeFi institutions get to own and control their liquidity flows in the markets they operate. In this case, Pangolin will have a far greater say in its liquidity flows within the markets where its tokens are listed.
Another benefit is the stabilization of token prices. The cryptocurrency space, and especially the DeFi space, is known for the high volatility of tokens. Bonding programs are known to stabilize the token prices and lower their risk levels.
It also enhances the longevity of its tokens. Yield farmers within the DeFi space are known for their many predatory practices. Their aim, which is always quick profits, is often at odds with project teams' and members' aims.
It gives the PNG token a new lease on life. Bonding helps to bring an elongated view to the Pangolin project. The revenue generated from the programs can now be equitably distributed and will increase participation within the Pangolin ecosystem.
The bonding program has also reduced the exit risk of the project, as Liquidity Providers often set aside a significant amount of their token LP activities. Bonds create breathing space for these LPs as there exists zero motivation to exit early for investors.
The New Partnership is a Perfect Match
Under the terms of the partnership, Pangolin would list its PNG tokens on the Olympus Pro X bond marketplace. The Olympus Pro X bond marketplace is one of the World's top-tier marketplaces for such bonds within the DeFi space.
Olympus DAO is also one of the leading DeFi structures that are democratically driven. With a solid codebase and governance rules that prevent monopoly, Olympus DAO avoided the human errors that often bring down DeFi institutions of its kind.
Pangolin is also going to draw on the human resources of Olympus DAO. The Olympus DAO team will help Pangolin to improve its project rankings. Thus, bringing in users from the ETH community who are seeking projects that have a long-term perspective.
As a World-first project on Avalanche (AVAX), the bond project will provide proof-of-concept sorely needed within the Avalanche space. It will spur further activity within the Avalanche (AVAX) ecosystem and bring new projects with bold ideas that have potential.
Pangolin proved its mettle in recent times when Ethereum went through its hangover of high transaction fees. Many saw it as a suitable link between Avalanche and Ethereum when things went dark.
Though Ethereum Improvement Proposal (EIP) 1559 has given all of us a breather (somewhat), we need to do more on the road to ETH 2.0. In the meantime, Pangolin is one platform that gives Avalanche (AVAX) D'Apps and their various communities the breathing space needed for innovation to flourish.
While the Ethereum community tries to resolve its issues, hope exists that we will continue our transactions easily. That is, without being at the mercy of the Ethereum miners, who care less about everyone else and more for themselves.
Something antithetical to the community spirit espoused and experienced by the founders and early users.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.