PangolinSwap: What It Is, How It Works, and Why It Matters in DeFi

When you trade crypto without a middleman, you're using a PangolinSwap, a decentralized exchange built on the Avalanche blockchain that lets users swap tokens directly from their wallets. Also known as Pangolin, it's one of the most active DEXs on Avalanche, powering over $200 million in daily trades. Unlike centralized exchanges like Binance or Coinbase, PangolinSwap doesn’t hold your funds. You control your keys, and trades happen through smart contracts—no sign-ups, no KYC, no delays.

PangolinSwap runs on an Automated Market Maker, a system that uses mathematical formulas instead of order books to set prices and match trades. Also known as AMM, this model relies on liquidity pools where users deposit pairs of tokens like AVAX and USDT to earn fees every time someone trades. That’s how it keeps trading fast and cheap—even during high traffic. It’s also built for Avalanche, a blockchain designed for speed and low fees, with transactions confirmed in under a second and costs under a penny. That’s why it’s popular among traders who want to avoid Ethereum’s gas wars.

But it’s not all smooth sailing. Because it’s decentralized, there’s no customer support if something goes wrong. A bad token, a flawed contract, or a rug pull can wipe out your money—and you won’t get it back. That’s why most users stick to major tokens like AVAX, USDT, or DAI. You’ll also find plenty of low-quality tokens on PangolinSwap, many with no real use case. Always check the token’s liquidity, audit status, and community before trading.

Most of the posts here dive into the real risks behind DeFi platforms like PangolinSwap. You’ll read about how composability—linking multiple protocols together—can create hidden dangers. You’ll see how stablecoins behave on DEXs during volatility. And you’ll learn why some exchanges, even on fast chains, still get hacked or drained. This isn’t theory. These are real events that cost people real money.

What you’ll find below isn’t a list of tutorials or hype. It’s a collection of hard truths about trading on platforms like PangolinSwap. From fake tokens masquerading as big projects to the hidden costs of liquidity provision, each article cuts through the noise. Whether you’re new to DeFi or you’ve been swapping for years, these posts show you what actually happens behind the scenes—and how to protect yourself.