Automated Market Makers (AMMs) allow digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. An example of an AMM is Uniswap on Ethereum.
This new method of exchanging assets embodies the ideals of crypto in general: no one entity controls, everyone can participate, and anyone can build on top of another.
The most famous AMM in Avalanche DeFi ecosystem is Pangolin.
Pangolin is a decentralized exchange (DEX) which runs on Avalanche features a native governance token called PNG that is fully community distributed and is capable of trading all tokens issued on Ethereum and Avalanche. Pangolin offers three critically important benefits: fast and cheap trades, community-driven development, and a fair and open token distribution.
PNG TOKEN
No PNG tokens are allocated to the team, investors, advisors, or any sort of insiders. Therefore, Pangolin is entirely community-driven and entirely community-owned. PNG is capped at a supply of 538 million tokens, 100% of which will be distributed to the community. The first 95% of tokens, or 512 million tokens, are dedicated to the community treasury, where they will initially be used to fund liquidity mining. The remaining 5%, or 26 million tokens, are dedicated to a community airdrop.
Community Liquidity pool
The vesting schedule is algorithmically specified as follows: starting from 256 M tokens for the first four years, the number of tokens distributed halves every additional four years, meaning that the next four years contribute roughly a quarter, and so on. This pattern continues into perpetuity. For reference, during the first four years, roughly 175,342 PNG will be distributed per day to liquidity miners.
MANY NEW AVALANCHE DEFI PROJECTS START TRADING ON PANGOLIN AS SOON AS THEY LAUNCH THE TOKEN. So, Pangolin is the first and most used AMM on Avalanche.
The second most famous AMM on Avalanche is called Baguette exchange.
Although just launched Baguette attracted attention to the project by airdropping $BAG tokens to Avalanche Network validators and delegators. It was the first practice in Avalanche Defi Ecosystem and it was highly appreciated by community members. Baguette presents similar characteristics to Pangolin and sometimes you can access cheaper prices on Baguette than Pangolin. Avalanche meme coin ShibAVAX chose Baguette to launch and successfully implemented a maximum 5 million $SHIBAX token sale on a single transaction in order to achieve a fair launch.
Famous Uniswap competitor Sushiswap is building a cross-chain exchange and also embraced the Avalanche network. Although it offers token swaps for Avalanche tokens, it's not yet the Avalanche community's first choice for AMM.
Avalanche Ecosystem does not have a DEX aggregator yet, but it is on the way. YieldYak team is working on launching it. Meanwhile, before they launch this functionality you can use their Compare page to find the best price match on Avalanche AMMs.
