Penguin Compounder: The Highest Yielding Compounder on Avalanche

Penguin Finance
4 min readJun 12, 2021

Our newest dApp is here, with innovative features that reduce sell pressure of our native token and add utility to the Penguin ecosystem.

How do we achieve the highest APY?

Our auto-compounding platform is designed to substantially increase the potential yield you receive from a farm on Avalanche through constant re-investing of your rewards. We reinvest 2–3 times a day, ensuring that all profits you receive are compounded optimally. Whether you are farming Pangolin, Gondola, or Lydia farms (more to come), the Penguin Compounder is your best bet.

Lowest Fees on Avalanche

Because this compounder has the lowest fees on the network (4.8%), a higher portion of rewards are re-invested into the contracts when compared to other platforms. This in turn grants us the ability to provide the highest APYs on Avalanche!

This is all done while taking into consideration the pool creators from other Avalanche projects. Unlike traditional auto-compounders, you are supporting the developers of your favorite farms by compounding your yield with Penguins.

Auto-Nesting (Exclusive to Penguin Igloos)

Auto-Nesting is a feature that currently applies to all Penguin Igloos designed to decrease PEFI sell pressure. This mechanism automatically converts 50% of PEFI net rewards into xPEFI (Penguin Nest). This is our single-asset staking token that grows with no risk of impermanent loss. By compounding your Igloo rewards in our Penguin Compounder, you are also getting access to exclusive dApps and utilities, some of which are listed below. To learn more about the Penguin Nests, click here.

xPEFI (Penguin Nests) exclusive benefits:

  • Penguin Emperor: King-of-the-Hill style game-mode with prizes for the top ranking Penguins.
  • Penguin Launchpad (Coming Soon): Exclusive access to token sales of upcoming projects on Avalanche.
  • Club Penguin (Coming Soon): Passively earn freetokens from your favorite Avalanche projects (single asset xPEFI staking).

An airdrop of PEFI directly to the Nest is also imminent, which will increase the value of all xPEFI. To learn how to participate, click here.

Claiming xPEFI

If you’re staked in a Penguin Igloo, you’ll notice a button next to “Withdraw” that claims xPEFI. When clicked, it sends your accumulated xPEFI rewards from the contract to your wallet.

Even if left unclaimed your xPEFI will continue to increase in value since it’s automatically staked. At any time, you can decide to claim the xPEFI accumulated in the contract, allowing you to use it in our Emperor, Launchpad, or Club Penguin dApps. It doesn’t matter how often you claim your rewards, it will continue to grow regardless.

To check how much xPEFI you have in your wallet, claim it from the contract and head over to the Nests page and unlock your wallet; your current PEFI and xPEFI balances will be displayed.

How to start compounding

If you are farming in our Igloos, you’ll need to withdraw your LP tokens and then re-deposit them in the compounder contracts to get access to the exclusive perks granted by this dApp.

To deposit your LP tokens into the compounder, unlock your wallet and click on the deposit button for your preferred farm. A transaction to approve the contract will take place, and once confirmed it’ll never appear again for the respective pool. Afterwards, you can open the deposit window and stake as many LP tokens as you want. Once that’s done, you’re autocompounding!

Current Listed Farms

Below is a list of every farm currently introduced to the Penguin Compounder. More farms will be added eventually.

  • 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

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 are 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.

Nest rewards collected from none igloo pools will be used to market buy PEFI and then send it to the Nest, this means that as the Compounder grows, xPEFI holders receive an even higher APY.


The remaining 1.8% fee is allocated to the development of the PeFi ecosystem, as well as paying for gas fees for our reinvest 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.

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.