Penguin Finance

Penguin Finance is a liquidity management protocol for projects built on Solana. Liquidity is the lifeblood of a protocol. It is standard practice in DeFi for a protocol to incentivise the trading liquidity of its token. However, trading liquidity is often fickle. When the market condition is good, the liquidity providers crowd in to capture the lion’s share of the protocol token emissions. But when the market turns sour, the liquidity providers are also the first ones to leave, and the protocol suddenly finds that its token liquidity has dried up precisely when it’s most needed. Many protocols, such as lending or leverage trading protocols, use their native tokens to underwrite risks. In such cases, the availability of liquidity would be critical during risk events to keep the protocol solvent. Penguin is a one-stop treasury management service that offers liquidity bonding and vesting. Instead of renting liquidity, a protocol can use the bonding service to purchase its liquidity. Protocol-owned liquidity stays with the protocol through a downturn, and can help it survive over the long-term. Token vesting will allow protocols to align its incentives and community with its long-term roadmap, rather than encouraging short-term engagement. Penguin Finance will also have a DEX (Decentralized Exchange) to provide trading liquidity. Around the Penguin DEX, bonding and vesting will help protocols to build a healthy treasury that controls its own liquidity. Treasury management is a rapidly innovating space. With Penguin, teams can focus on building their core products, while growing well-diversified treasuries to support their needs.