Introduction

Welcome to Pangea Swap!

We are thrilled to introduce you to Pangea Swap, the first-ever AMM DEX to provide concentrated liquidity on the Klaytn ecosystem.

DEXs are supposed to function as the heart of the asset flow within the ecosystem. But most general DEXs on the Klaytn ecosystem are based on the traditional CPMM model, $x*y=k$. While this method has the theoretical merit of being able to respond to swaps happening in all price ranges (zero to infinity), in reality, most of the liquidity provided by the LPs is not actually used for the swaps.

Such a low liquidity utilization rate has its downsides - limiting the swap fee income of LPs and tightening the asset flow within the ecosystem. What’s worse, this drives down the LP yields due to small swap volumes and eventually causes the LPs to leave the platform in an already downward-facing market situation.

With concentrated liquidity, deeper liquidity is used for swaps.

Pangea Swap is determined to resolve this issue by providing concentrated liquidity, increasing the utilization rate. When liquidity is added in concentration to particular price ranges, more liquidity will be activated and utilized for actual swaps. This will bring larger revenue shares for LPs and facilitate the overall asset flow throughout the Klaytn ecosystem.

Our Vision

Concentrated Liquidity to Maximize LP Benefits and Activate Liquidity within the Ecosystem

The Pangea Swap team is dedicated to activating the dormant liquidity within DEXs by providing concentrated liquidity. An increase in liquidity utilization rate means more liquidity provided by the LPs will be utilized for the actual swaps, which in turn, provides bigger swap fees for the LPs. Taking a step further, we aim to increase the total transaction volume in the ecosystem by activating the overall liquidity in the Klaytn ecosystem.

Heart of the Klaytn DeFi Money Legos

Powered by light tokenomics, 100% open-source and specialized functions in inter-protocol cooperation, we hope to stand in the very heart of the Klaytn DeFi Money Legos. DEX is one of the fundamental elements of the DeFi ecosystem, and other DeFi protocols should be able to build on top of its liquidity and system, forming Money Legos.

It is difficult to create another protocol on top of a complicatedly designed protocol. Pangea Swap focused on liquidity supply and swaps, which are the core of DEX, and did not introduce complex tokenomics. In addition, all Pangea Swap codes are disclosed 100% open-source, so anyone can see the core code of Pangea. This allows anyone to freely create a new DeFi service using our protocol.

On top of that, various functions, including customizable pools specialized for inter-protocol cooperation, will become building blocks for a much more stable DeFi ecosystem going forward.

Decentralized Governance

Pangea Swap is a protocol that grows with the community. Decision-making in Pangea Swap will utilize our governance token (STONE) as the main means. Ultimately, we envisage a future where Pangea is operated by the community as a DAO structure and not by the initial development team.

Bridge for a Multichain Universe

The imminent future fueled by blockchain development envisions a multichain ecosystem in which many chains with unique characteristics are bound to coexist. To ensure more active movement of assets in between the chains, we need deep enough liquidity pools, allowing for assets that have been bridged from other changes exchanged into native tokens. Concentrated liquidity provides much more sufficient liquidity to the bridged token pairs and activates the transfer of assets among chains. Pangea Swap hopes to become a bridge between the Klaytn and other chains with concentrated liquidity.