Where Pangolin Stands in the Current Market

There’s no easy way to address what happened last week. The stories we’ve heard from community members, team members, and partner projects who’ve lost a large part of their portfolio’s value are devastating. While participating in DeFi comes with risks, this accelerated devaluation has hurt the entirety of the Web3 community and will have repercussions for many months to come.

How it affected Pangolin

Since May 8th, we’ve seen a significant drop in TVL. Much of this was driven by the depegging of UST as well as withdrawals of large amounts of AVAX from the platform as a result of the depegging shock. All of this matched with across-the-board drops in price, our TVL is the lowest it’s been since Feb 2021.

During last week’s volatility, our 24hr volume reached $108mill, making it the largest volume day of the year. This has temporarily boosted single-sided staking APR, funded by buybacks, to above 100%. Daily volume has leveled again, and we expect this boost to be temporary, with APRs most likely leveling out in the coming weeks.

The Pangolin Treasury, used for operating expenses, has taken a significant hit. We were not holding LUNA and before the UST depeg we moved all UST holdings to USDC in response to healthy skepticism from our Lead Analyst. Even with those defensive moves we still felt the same impact that everyone else has from the market-wide drop. At Pangolin, we were most affected by the dips in PNG and AVAX prices.

What does this mean for Pangolin?

As a team, we are here for the long term and will not stop building tools for our community and partners to explore and innovate what the future looks like for decentralized applications.

With upcoming grants and potential funding, and if the market doesn’t get exponentially worse, we have sufficient runway to continue building Pangolin into a profitable and revenue-generating business. It won’t be easy, but we are fortunate enough to be able to fund our team in fiat and provide the foundation for expansion and growth over the course of 2022.

We’ll be updating our Roadmap to consider Pangolin’s current position. Expect us to lean into revenue-generating expansion and community-building initiatives. Besides actual currency, the most valuable asset we have is our community members and users. Without you, there is no Pangolin, and we will be building products and services that enhance the ways you operate in a multichain future.

Moving forward

Today, May 19th, we are adjusting the weight of all UST and LUNA farms on Pangolin. While we can’t tell you whether or not to speculate on what will happen with those assets, we will be focusing emissions on other farms.

For the UST Super Farms, this weight change will significantly reduce the PNG rewards while extending the emissions schedule. The UST rewards in these farms already live in the contract, so the emission schedule will extend at least another 6 months, if not more. The PNG rewards from those farms will be reallocated to PNG-USDC, AVAX-USDC, and USDC-USDC.e farms.

UST will no longer be our default swap token although we will still maintain cordial relationships with all builders within the Terra ecosystem during this difficult time.

The road ahead

Thank you sincerely for supporting us. This week we celebrate the first anniversary of our core team being hired. The road has had its ups and downs, as most projects experience in crypto. We’ve spent the last six months strategically preparing ourselves for multi-chain expansion, and we are ready to change the trajectory of Pangolin’s future.

Our team is always available on Discord and Telegram to answer any questions or concerns you have. It’s going to take a lot of effort, collaboration, and creativity, but we are here to build for many years to come.

With love,

The Team at Pangolin