Dexalot: Brings CEX Functionality to a Decentralized Trading Platform

  • February 9, 2022
  • 109 Views

Dexalot is a unique decentralized platform that has the goal to deliver the traditional centralized exchange platform experience through a decentralized application on-chain.

You only need your crypto wallet. There are no intermediaries, swift transactions, and no custodial ownership. Users can maximize their investment with low fees and with new features in the future and governance decided by the community.

Dexalot’s mission is to bring a Central Limit Order Book capability on a functional decentralized exchange to the cryptocurrency finance space. It provides a trading environment that can compete with centralized exchanges.

Dexalot and Avalanche Protocol

Dexalot runs off the Avalanche platform for its obvious advantages in speed, throughput and near-instantaneous transactions.

Previous attempts at Central Limit Order Book Functionality on blockchains were met with inferior protocols that typically led to limited adoption, high fees and large amounts of market risk.

Dexalot solves these problems by operating on the C-Chain and it will attempt to further improve user functionality and experience.

Unlike traditional AMMs (Automated market maker) on Avalanche, that focus on swapping, Dexalot allows users to enter orders at prices they want to execute at.

These orders eliminate worries for price slippage on executions and the unforeseen risk of being front-run during a crucial trade.

Making Liquidity Work

When liquidity is reached, market orders will allow users to receive the same price-time priority that they are accustomed to on centralized exchanges.

While Dexalot enhances the user experience for trading on Avalanche, through the functionality of a central limit order book, it also stands out with other features built directly into its foundation.

All transactions are irreversibly recorded on the chain.

By using the ID of a transaction, one can access the associated blockchain record, as approved by Avalanche validators. This feature allows users to view all pertinent transaction information for complete transparency.

Better Tools

The absolute independence of a decentralized exchange means there is no centralized control over the exchange or the user’s tokens.

Dexalot does not depend on any third-party services and the control of the wallet remains in the hands of user’s, staying true to it’s permissionless and non-custodial nature.

One of the biggest advantages that Dexalot has is the Intel SGX-supported Avalanche Digital Asset Bridge.

This bridge between the Avalanche blockchain and the Ethereum blockchain has allowed DeFi enthusiasts to bridge assets into Avalanche.

While the bridge is currently only supporting Ethereum and Avalanche, the technology allows for the bridging of other blockchains in the near future.

Emin Gun Sirer, Founder of Ava Labs and Director of Avalanche Foundation, commented,

“The last two months have shown incredible growth across Avalanche, with users, assets, and applications joining the community in record-highs. Blizzard will play a key role in further accelerating this growth, and solidifying Avalanche’s position as the premier home for projects and people pioneering the next era in our space.”

Attracting Investors

The team has capped investment at $7 Million USD, and investors such as, Avalanche Blizzard Fund, GSR, Woodstock Capital, Benqi, Avascan, Maven Capital, and Maximizer.

Some of the Key Investors include:

Avalanche
Republic Capital
Avalaunch
Muhabbit Capital Ventures
Colony Lab

Solving Exchange Issues

After seeing the issues with other exchanges, the founders started the development for Dexalot.

Some of the things that needed to be fixed included:

Shortcomings of central exchanges by hiding fees on their users, while claiming to have zero fees
A ridiculous concentrated amount of funds in custodial accounts, rendering the user without the ownership of their tokens
Too many exchanges are susceptible to rug pulls, frontrunning and hacks. Leaving users feeling cheated, tokenless, or robbed

Many exchanges have engaged in improper use of customer funds: staking, trading, leverage. Promising the customer high returns, when in actuality they only trickle profits to the user.

Some exchanges have had unexplained system outages, usually when prices skyrocket and become more volatile. Resulting in investors losing out on crucial moments in the price to sell.

Dexalot’s Business Model

According to the company, it would be valuable to, or provide value to, 

Projects that have treasuries (MAXI etc.)
Providing low slippage, capital efficient execution partnership to other businesses:
Ability to leave orders to manage risk when sleeping (i.e. orders that would execute even if you aren’t online)
Projects that raise crypto currency capital
Hedge Funds
Investment Advisors and Asset Managers
Ability to “self-custody” where no crypto is given to a company that can get hacked, or steal assets

Customer Relations and Channels

The foundation to Dexalot’s business model is the customer. Which sticks to the core values of decentralized finance. Meaning the user has total control over their own financial future.

According to the company,

The initial customer segment is expected to be crypto currency traders focusing on Avalanche
The next target would be crypto currency traders focusing on other chains and the crypto traders using centralized exchanges
Finally there would be the general population who are interested in crypto but don’t know where to start

Market Interest is Growing

Dexalot will put into action a governance model in addition to creating bonuses for it’s loyal users in the very near future. A strong community ownership and participation in governance is a very important goal for the project.

Dexalot started the Avalanche testnet on Aug. 6, 2021. The community has been extremely enthusiastic about the project with close to 1,000 unique wallets trading on day one.

The first 24 hours were phenomenal, there were 44,000 transactions completed, reaching an amazing $1.17 million in volume in those transactions.

Continuing with this tremendous momentum, the Avalanche community were invited to participate in incentivized events, like bug hunts, to push the system to its limits and further.

Making Progress

Dexalot plans to launch on the mainnet in the near future, with hopes that the crypto community will come together and expand on this groundbreaking decentralized finance space.

Dexalot launched their testnet on Aug 6, 2021. Since then they have been working with only Crypto transactions and have been able to process over 255,000 transactions and during this time they’ve gathered approximately 12,000 unique wallets.

Anybody can use Dexalot simply by connecting a MetaMask wallet and adding the Avalanche mainnet. Seed phrase provided by Avalanche Foundation.

The Next Generation of Exchange Infrastructure

Dexalot’s core team has a long-term vision with a clear roadmap and innovative features for the future.

Dexalot has been committed to staying true to the core beliefs of decentralized exchanges, while keeping things simple and in the hands of investors and by holding the customers at the heart of their business model.

Complete privacy and control at all times, something central exchanges and most decentralized exchanges are apprehensive to implement.

Dexalot plans to crush all of those worries for the common user. By creating a user friendly platform while bringing an efficient Central Limit Order Book. It will be truly decentralized and offer the utmost security rivaling any centralized exchange.

If you don’t hold the keys, then the tokens aren’t really yours.

But, with Dexalot you hold the tokens in your wallet and you hold the keys. Dexalot brings a transparent decentralized trading environment, one that rivals centralized exchanges with its simplicity.

Security, speed, user friendly interface and low cost makes Dexalot stand out from the rest. To learn more – please click here!

The post Dexalot: Brings CEX Functionality to a Decentralized Trading Platform appeared first on Blockonomi.

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