Introducing the Penguin Compounder: Next Generation Auto-Compounding on the Avalanche Network

Lowest fees, pool creator incentives, and a special Auto-Nesting feature are coming to the Penguin Finance protocol.

Penguin Finance
3 min readJun 1, 2021


After weeks of development and testing behind the scenes, it’s officially here! This week, our penguins will have access to the best auto-compounding platform on Avalanche. An auto-compounding dApp was a popular request of our users; by creating our own version we’ll increase the TVL inside of the PeFi ecosystem and offset part of the sell-pressure through the allocation of fees towards incentives to HODL our native token.


With a new dApp come innovative strategies never before seen with traditional auto-compounders. Our compounder will have a special added feature called: Auto-Nesting (Igloos only). The result is part of your PEFI rewards are automatically staked in our Nests. This decreases sell-pressure of PEFI and incentivizing holding, as you now have access to 400%+ APYs with no IL, the Penguin Emperor, and soon, the Penguin Launchpad!

Penguins with no previous experience on the Nests will now experience our exclusive dApps, as well as IL-free PEFI rewards.

Lowest Fees on the Network

This new auto-compounding protocol will have fees that reward both pool creators and $xPEFI holders. The established fee for all pools is 4.8% over rewards, significantly lower than any other auto-compounder on Avalanche. By keeping fees low, we ensure the highest APYs on the network.

Pool Creator Rewards

A staple of our auto-compounding platform is it’s unique fee allocation towards pool creators. If opted by the project’s respective developer team, farms listed on the Penguin Compounder protocol will have 1% of all rewards directed towards the developers of the respective pools. We want to help out other projects in the space by giving them a share of the pie, encouraging builders to grow and expand their influence on the Avalanche network.

Since they’re benefitting from the Penguin Compounder, this will also encourage creators to promote our platform and in turn grow the PeFi ecosystem!

Nests (xPEFI)

As a mechanism to offset some of the sell pressure that comes as a result of auto-compounding, 2% of all rewards will be sent to our Penguin Nests. By allocating 41% of the fees to the Penguin Nests, less PEFI is in circulation and more users will be incentivized to HODL xPEFI.

Since our inception, we’ve been constantly developing new dApps to reward our HODLers and provide utility to the platform.


The remaining 1.8% fee will be allocated to the development of the PeFi ecosystem, as well as maintenance of our re-invest bot, which is in charge of constantly re-investing all rewards in the protocol. Because we have a bot taking care of reinvesting, no rewards are allocated to re-investors as there is no need for a reinvest button.

Initial Farms

Here is a list of every farm we will introduce on the launch of the Penguin Compounder:

  • All PEFI Igloos
  • Pangolin AVAX/PNG
  • Pangolin AVAX/ETH
  • Pangolin AVAX/LINK
  • Gondola ETH/ZETH
  • Gondola USDT/ZUSDT
  • Lydia AVAX/ETH
  • Lydia LYD/USDT
  • Lydia LYD/PNG
  • Olive DAI/USDT

About Penguin Finance

Penguin Finance is a platform powered by Avalanche building an innovative set of decentralized applications, financial products, and documentation for both technologically savvy individuals and those with absolutely no knowledge of cryptocurrency.

We’re bridging the gap between DeFi and mass adoption by offering ultra-low fees, an intuitive UX design, and the best documentation/tutorials. PeFi is made for penguins, by penguins.

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Penguin Finance

Penguin Finance (PeFi) is an exciting new yield farming project on $AVAX.