The Future of Decentralization and How Pangolin is Unaffected by FTX
The events of last week are not easy to address. The loss of funds for crypto users and teams will have lasting repercussions throughout our space. Regarding Pangolin, here’s what it all means for our community and the future of decentralization.
Pangolin Had No Funds on FTX
Pangolin held no treasury funds on FTX, was not exposed to their exchange, and does not store any tokens on centralized exchanges.
In alignment with our guiding values, Pangolin utilizes Fireblocks to safeguard treasury and grant funds and maintains custody of all assets.
As for treasury funds, Pangolin holds the majority of funds in stables to combat volatility, and the contributing team has sufficient runway to battle the bear market.
DEX > CEX
The FTX death spiral has made it apparent that decentralized exchanges are fundamental to the future of cryptocurrencies. Transparent custody of funds is imperative to building a future where community members can safeguard their funds from malicious founders and institutions.
Decentralized exchanges (DEXs) do not require custody of your assets. Centralized exchanges(CEXs,) such as FTX, hold custody of your funds similar to a bank (without the required regulations on checks and balances).
On a DEX, your funds remain in your self-hosted wallet while you trade. The only case where you give custody away on an AMM/DEX is if you provide liquidity. In that case, the liquidity you provide is held in an automated smart contract and is governed by the law of code.
Pangolin’s smart contract pools allow for permissionless, trustless and fully decentralized trading to continue into perpetuity. No matter what happens to the contributing team, Pangolin’s smart contracts will continue and anybody can reutilise them by deploying a new user interface or front-end portal should they wish.
DEXs traditionally include on-chain governance voted on via a governance token. On Avalanche, the Pangolin DAO is governed by PNG holders. PNG holders decide the future of the DEX.
It’s increasingly apparent that centralized institutions do not serve the purpose that brought all of us to this space. Pangolin has, and will always, champion decentralization and aim to take market share from centralized exchanges.
Pangolin DAO will continue building by:
Deploying our subDAO model on new chains
Adding interoperability to Pangolin Exchange with cross-chain bridging and swapping options to ensure you can compound your community in one place
Expanding our Sunshine and Rainbows staking algorithm to Avalanche and beyond
Offering open-source, decentralized tools and products with multichain scalability
This year has dealt multiple blows to our industry, and we will continue evolving.
As we progress through the storm, our focus is on creating the best products and services for our community and encouraging our industry counterparts to do the same.
The current Pangolin DAO and all contributors will continue building toward a chain-agnostic future where users compound their community and interact with multiple chains in just a few clicks. And, as always, we intend for that future to be here at Pangolin.
About Pangolin Exchange
Pangolin is a multichain decentralized cryptocurrency exchange (DEX) on the Avalanche and Songbird Networks. Through advanced tooling, deep liquidity, and smooth onboarding, Pangolin offers easy swaps and a great experience for projects and traders alike.