Reports said that Pangolin, a decentralized exchange (DEX) on the Avalanche network, will debut on the layer-1 blockchain Flare network. Flare is known for its interoperability solutions and Pangolin hopes to utilize the underlying technology to reach new blockchain networks.
It has been reported that with its move to the Flare blockchain, Pangolin will be able to see new cross-chain token pairs, offer in-DApp swap functionality to partner projects, and bootstrap liquidity for the network.
However, the layer-1 blockchain platform has paid special focus to interoperability, allowing projects on the platform to connect and interact with multiple blockchain networks. Pangolin can offer DEX-as-a-service features to any Flare-based application that wants to incorporate direct token swaps into its user experience.
The report said that another dominating issue in the decentralized finance (DeFi) market has been the recent crash among centralized crypto lending firms, leading to investors losing billions of dollars.
Justin Trollip, the CEO of Pangolin, said that recent issues occurred due to hubris and unsustainable leveraged positions by interconnected whales, and Pangolin would ensure such events don’t occur on their platform.
He added:
"The beauty of DeFi is that once funds are in a smart contract there's no veil of secrecy around where those funds are and what they're being used for. We take the security of our users seriously and provide full transparency along with major investments in audits for any newly deployed smart contracts."
Thus, the Pangolin DEX will be able to swap any token that is bridged to Flare, regardless of whether it has smart contract capabilities, using FAssets and LayerCake, the two interoperability solutions offered by the Flare network. Interoperability is seen as the future of DeFi, with many market pundits and Web3 experts predicting that projects with cross-platform support will be the backbone of the next generation of DeFi and Web3 projects.
Source: Cointelegraph