I was digging down into the usual DeFi rabbit-hole. And I found myself on Pangolin–a decentralised exchanged like Uniswap but on Avalanche. And I came across something new, bubbling up from the depths. Penguin Finance.
Despite how cold it was, I stumbled upon one of the hottest cryptos in my bag. Let me give you the sweet stuff before we go ice-skating into the nitty gritty.
Penguin Finance review
- PancakeSwap clone. I’m guessing you’re somewhat well-versed enough to be hooked into PancakeSwap, yield farming, liquidity pools, farming .etc. Well, PEFI takes much of the same code and is brings the familiarity of PS to Avalanche. But, they’ve built up on this and added even more cool features.
- Super low fees. Like Binance Chain, Avalanche is also really fast and cheap to transact on. Great for everyone. Ethereum fees are way to high at the moment.
- Nests are churning out loads of PEFI. That’s in the regions of 400+% APY. That is phenomenally high. And do you want to know why this is the case? It’s because this is cutting edge first entry confidential.
3 key things you should know about
Swaps — Like most other DEXs floating around nowadays, Penguin Finance supports swaps. And, like Pangolin, offers a cost efficient way to invest in and trade Ethereum tokens — they can be wrapped on Avalanche. At present the swap functionality is offered through Pangolin, with view to implement their own swap mechanics at a later date. (Its early doors.)
Igloos — Like the farming option on PancakeSwap, Uniswap, etc. Penguin Finance operates ‘Igloos’. Users are rewarded with PEFI tokens as an incentive for providing liquidity. More on this later, there’s a clever platform you can use to auto-compound PEFI.
Nests — The nests are single asset farms that currently support PEFI. By putting your PEFI in the nests, you’re given xPEFI. xPEFI generates PEFI in a compounding fashion, and a can be traded back for PEFI at a higher ratio at a later date. There are fees for exiting, but considering the current APY rates, the fees are covered within a week.
How to use Penguin Finance
The steps required to use Penguin Finance are the same for any Avalanche-based DeFi at the moment.
- Get Metamask; if you don’t already have it: Get it. Download it. Install it.
- Add Avalanche to Metamask; follow this tutorial by the guys at Pangolin.
- Buy some Avalanche; it’s available on Binance.
- Send your Avalance to Metamask via your Avalanche Wallet. First, send from Binance to your Avalance Wallet, on the X network; then within the Avalanche wallet move it from the X network to the C network; then send from the Avalance wallet on the C network, to your Metamask Wallet.
It is far easier than it seems. And if you can make it that far. You will have a whole new world of Avalanche DeFi opened unto thee.
PEFI can be auto-compounded via Yield Yak
Yep, Yield Yak are offering auto-compounding farming for PEFI LP farms at the moment. They take a small fee for the service, but it’s worth it if you’re looking to farm in PEFI Igloos anyway.
This is a massive plus for Penguin Finance. Firstly, it shows they’re reaching out to other DeFi platforms in the Avalanche ecosystem.