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RedStone x Pangolin: Unleashing DeFi Potential

What is Pangolin?

Pangolin is a multi-chain decentralized digital assets exchange (DEX). Through advanced tooling, deep liquidity, and smooth onboarding, Pangolin offers easy swaps and efficient tools for projects and traders.

Launched in February 2021 on the Avalanche Network  (C-Chain) as a proven concept for automated market makers (AMMs), Pangolin facilitated over $15 billion dollars in trading volume in its first year.

Pangolin embarks on a multi-chain journey to compound the community with deployments on Hedera Network, Flare Network (Songbird), EVMOS, Near Protocol and many more.

DeltaPrime x Pangolin: unleashing LP tokens potential

Pangolin was the first integration in the DeltaPrime protocol, being integrated in February this year. With this integration, traders could create a leveraged cross-margin portfolio on DeltaPrime. 

In short, you can either deposit LP tokens in DeltaPrime which count as collateral to borrow against (meaning you get leverage on your LPs) or deposit another asset to borrow against and create LP tokens out of them (so, in this case, you can borrow e.g. USDC & AVAX and create a superLP out of it).

What Pangolin’s pools one can tap into?

What are the benefits of investing in Pangolin through DeltaPrime?

  • Use fast, reliable and cheap swaps with an Avalanche OG
  • Own a cross-margin portfolio with Pangolin-provided tokens
  • Extend this portfolio with Pangolin-provided farming opportunities
  • Multiply the value of your portfolio on DeltaPrime
  • Multiply your farming APY on DeltaPrime

What role do RedStone Oracles play here?

RedStone provides a precise real-time valuation for tokens from the above 3 pools. This enables over- and undercollateralized lending protocols such as DeltaPrime to bring their liquidity to Pangolin building a capital-efficient ecosystem with lower slippage in-between trades.

DeltaPrime needs real-time price data allowing the protocol to provide secure undercollateralized loans for its users. The precision of the data is of utmost importance here. Without it, the collateral price would not be represented accurately, which could put  Pangolin‚Äôs TVL and DeltaPrime’s liquidity providers’ money at risk. To avoid bad debt creation, based on RedStone‚Äôs pricing data, Delta Prime calculates Health Score – a parameter which tells the protocol when to liquidate its user’s positions and give the tokens back to its LPs.  

Borrowed funds must be repaid in the same asset they were issued with. When liquidation occurs, the bot will pay back the loan in the following steps:

  1. Calculate how much should be repaid to bring the loan back to a safe level.
  2. Repay part of the loan from tokens supplied by the liquidation bot.
  3. Transfer part of account positions + liquidation bonus to the liquidator.

That means: The tighter the margin, the bigger the profits for LPs meaning the more accurate price, the better.

About Pangolin

Pangolin is a multichain decentralized digital assets exchange (DEX). Through advanced tooling, deep liquidity, and smooth onboarding, Pangolin offers easy swaps and great tools for projects and traders.

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About RedStone

RedStone is revolutionizing Oracles industry by implementing a novel modular design and 3 tailor-made data consumption models. You can build the new generation of DeFi & Web3 protocols based on RedStone’s versatile data offering of long-tail, Lp, and Ecosystem-native tokens, as well as Real World Data and custom feeds.

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