Optimizing Pangolin Farms Portfolio, 2022 Edition
It’s a new year so time for some housecleaning!
This post covers Pangolin’s approach to adjust multipliers on farms from top to bottom with the goal of making Pangolin Farms both attractive to farmers and helpful for high-volume trading pairs.
While it is standard practice for Pangolin to optimize farm multipliers every one-two weeks, it has been a while since we overhauled the entire multiplier list from top to bottom. It’s a critically important exercise as it ensures that Pangolin farms are competitive and also maximize the protocol’s revenue. Our focus on revenue has a direct positive impact on the APR of single-sided $PNG staking.
Pangolin has a very talented, full-time analyst that is constantly analyzing & reviewing farm weights and new farm setups. In addition to our internal capabilities in this area, we have also signed a long-term partnership deal with a third-party blockchain data & analytics firm to help us optimize farm multipliers and make improved decisions.
Because we now have greater capabilities and precision when it comes to farm analytics, we will be changing farm weights much more regularly than in the past.
Assessment of Pangolin Farms Q1, 2022
- Many farms just don’t perform: Regardless of how high their APR is. They don’t attract enough liquidity, and the pair doesn’t produce much revenue from trading fees. These farms keep the total volume stagnant and create selling pressure on PNG. The rewards from these farms could serve a better purpose elsewhere.
- Attracting liquidity can improve: Pangolin currently fails to attract liquidity for some farms regardless of how high the APR is compared to what is offered by competitors. In most cases, those farms are also the ones that underperform in terms of volume. Thus, offering higher rewards when people prefer providing liquidity somewhere else just creates sell pressure on $PNG.
- A different approach for greater optimization: Pangolin can have competitive rates for the under-performing farms and shift the rest to the farms that will help increase volume and TVL.
Solutions & Coming Changes
We have begun to shift the LP rewards from the farms that don’t deliver liquidity or swap volume to the ones that actually provide liquidity as well as drive impactful revenue for Pangolin and $PNG stakers.
These changes are aggressive and we feel necessary to keep Pangolin competitive and grow the rewards for our PNG stakers. These updates will increase in volume and TVL on the Pangolin DEX
Complete list of Pangolin new farm multipliers:
These farms are being removed: