St Petersburg, Florida, Feb. 17, 2022 — Dexalot, a new project building a decentralized order book exchange on the Avalanche network, has collected $7 million in funding led by Avalanche’s Blizzard Fund with participation from several Avalanche ecosystem players and decentralized finance investors.
In addition to Blizzard, Avalanche ecosystem investors include Avalaunch, Colony, Benqi, AVentures Capital and Avascan. Other partners include Republic Capital, GSR, Muhabbit Capital Ventures, Woodstock Fund, Maven Capital and IPC.
Dexalot is a central-limit order book (CLOB) exchange running on the Ethereum Virtual Machine-compatible Avalanche cross-chain, aiming to plug a hole in the niche of Avalanche decentralized exchanges (DEX) — of which so far are only automated market maker (AMM) based. While AMMs have seen enormous success, they remain only sub-optimal for expert users due to uncertain price execution, high slippage and low-capital efficiency for market makers. To offer a valid alternative, Dexalot offers a classic CLOB system to ensure users can place orders at more precise price levels and guarantee optimum execution.
Additionally, Dexalot is aiming to solve a myriad of issues associated with tokens listing on AMMs through Dexalot Discovery. This project will combine CLOB with a novel auction system, which will allow investors — seed, private, initial DEX offering and public — to enter no slippage orders during the course of a period. This eliminates the speed advantage of bots, enabling users to see buy-and-sell demand transparently and match buyers with sellers fairly at the end of the process.
Users can send limit orders that operate sequentially: Each placed order is either treated as a “taker” — depending on its price and remaining liquidity — and instantly matched, or it’s placed as a “maker” on the order book. The system is not all-or-nothing, so taker orders that can only be filled partially are placed as maker orders for the remainder of the liquidity. Price-insensitive market orders will also be turned on for certain pairs.
Dexalot has been operating on the testnet since August 2021, registering more than 250,000 transactions and more than 12,000 unique interacting wallets. The community members who use the exchange will be included in the project’s governance, ensuring a community-led spirit from day one.
“We’re very excited to receive support from everywhere in the Avalanche ecosystem,” said Nihat Gurmen, CEO of Dexalot. “Dexalot wants to create a truly transparent, community-owned crypto exchange where users can trade assets at the capital efficiency of central exchanges with the same, or better, user experience.”
“Dexalot is pioneering a new generation of DEXs, enabling users to trade any asset with low fees, zero slippage and efficient price discovery. Most chains lack the capacity and velocity to maintain an on-chain order book, forcing users to settle for poor trade execution. Dexalot capitalizes on Avalanche’s speed to deliver a peerless user experience,” said Emin Gün Sirer, director of Avalanche Foundation.
“As a CLOB, Dexalot introduces new functionality to the ecosystem and seizes the opportunities unlocked by Avalanche’s near-instant finality. The Blizzard ecosystem fund is excited to support Dexalot, as it is quickly positioning itself as a crucial application for users in the Avalanche community,” said Lydia Chiu, a spokesperson for the Blizzard Fund.
About Dexalot
Dexalot is a revolutionary DEX aiming at bringing the traditional centralized exchange look and feel to a decentralized on-chain application. Its mission is to foster a truly inclusive and transparent environment where Dexalot users can trade crypto securely and efficiently, with no slippage or custody risk. It is built on Avalanche: the fastest smart contracts platform in the blockchain industry.