Review Dexalot ($ALOT) – Innovative Decentralized Order Book Exchange on Avalanche

Dexalot is an innovative exchange designed to deliver a CEX-like experience to DeFi.

What is Dexalot ($ALOT)?

Dexalot is a Central Limit Order Book (CLOB) exchange that runs on the EVM-compatible Avalanche C-Chain. It aims to fill a need in the Avalanche DEX market, which is currently dominated by AMM-based exchanges. While Automated Market Makers have achieved significant success, they remain unsatisfactory for professional users due to price execution uncertainty, high slippage, and market makers’ low capital efficiency. To provide a viable alternative, Dexalot utilizes the old CLOB technology, which enables users to make orders at specific price levels and ensures optimal execution.

Dexalot is built on Avalanche platform’s C-Chain technology for its implementation as it offers the following advantages:

• 100% compatibility with the mature Ethereum Virtual Machine technology.
• Transactional speeds with 1-2 second finality.
• Transactional throughput that can withstand thousands of transactions per second.
• Low cost of deployment and operation.

Outstanding Features

What is the project trying to achieve?

The most direct way for Dexalot to differentiate itself from other DEXs is through the addition of limit orders, which are generally unavailable on decentralized trading platforms. This makes the exchange a more practical option to AMMs, which limits users to exchanging tokens at their current market value. Because Dexalot traders may place limit orders at predefined prices, they can employ more sophisticated trading methods. Dexalot also intends to offer market orders for trading pairs with appropriate liquidity. It delivers a genuinely inclusive trading environment with a look and feels that rivals centralized exchanges.

Dexalot distinguishes itself from other centralized and decentralized exchanges in three ways:

• Ability to place limit orders full on-chain: Traders can set order size and price limits. An order that matches a price in the order book eliminates liquidity (taker order) and executes instantly. If no immediate matches exist in the order book, the order is added as a new maker order. Taker orders do not have to be all-or-nothing (AON), as Dexalot enables partly completed orders, with the unfulfilled piece immediately entering the order book as a maker order. Dexalot also enables market orders, but only for trading pairings with sufficient liquidity.
• Inclusion of users through governance: Dexalot will soon issue its own native token to develop a governance mechanism and reward loyal users. The token will be distributed fairly to encourage strong community ownership and involvement in governance.
• Built on Avalanche: It was clear that the Avalanche platform would be the best choice for Dexalot because of its speed, throughput, and near-immediate finality. Central Limit Order Book functionality hasn’t always worked well on blockchains with weak consensus protocols. This has led to low adoption, high slippage, and a lot of market risk for the users. Dexalot solves these problems by working on the C-Chain and it will be deployed on an Avalanche subnet (subnetwork). At which point, the exchange will be more robust and flexible.

What is the unique selling point?

The Dexalot application’s UI

Dexalot intends to integrate the finest features of a centralized and decentralized exchange, and the Dexalot app’s design will seem immediately familiar to anyone. We may see a candlestick price chart, an order book, and the history of transactions after picking a trading pair. Additionally, users may see their open orders, the current assets in their trading account, and their deposit and withdrawal histories.

Dexalot Discovery

Dexalot Discovery aims to resolve plenty of concerns linked with token listings on AMMs. Dexalot Discovery will combine the CLOB with a novel auction system that will enable investors (seed, private, IDO, and public) to enter no-slippage orders over a period of time (eliminating the speed advantage of bots), enable users to see buy and sell demand very transparently and match buyers and sellers fairly at the conclusion of the process.

Dexalot Discovery enables users to view, purchase, and sell tokens in a transparent way, hence removing the speed advantage of bots. Additionally, it fairly matches buyers and sellers at the conclusion of the procedure.

Users can send sequential limit orders using Dexalot Discovery, which means that each order made on the DEX is either considered as a “taker” and instantly matched, or as a “maker” order in the order book.

Technology

All smart contracts are coded in Solidity v8.x and they are available from the project Github repository with a BSD 3-Clause license at https://github.com/dexalot/contracts/). Dexalot’s collection of smart contracts makes extensive use of OpenZeppelin upgradeable contracts available from https://github.com/OpenZeppelin/openzeppelin-contracts-upgradeable. All traders and smart contract enthusiasts are welcome to scrutinize the code for security and become part of the development. Dexalot’s smart contracts are fully audited by Ava Labs and Hacken OU.

The Dexalot platform is made up of components that provide various services:

• User Wallet: Users will utilize their wallets (Metamask to start) to connect and interact with Dexalot.
• Frontend: This is the user interface for Dexalot where users can view the order book, place orders, cancel existing orders and can track their portfolio.
• Backend This is the server side infrastructure that is responsible for responding to the interactions from the frontend, recording the transaction activity into the database, and serving data back to the frontend.
• Smart Contracts This is the collection of smart contracts that are deployed on Avalanche C-Chain which houses the on-chain order and trade information. This component is also responsible for performing the settlement when two orders are matched.
• Database: A PostgreSQL database is leveraged to keep a drop copy of all transactions on the exchange as well as associated events for performant response to the frontend.
• Automated market Makers These are the participants who are providing liquidity and two way pricing on Dexalot.

Roadmap

• Q3 2021 – Testnet Launch
• Q4 2021 – Mainnet launch with multisig wallet
• Q2 2022 – Transition to governance
• Q2/3 2022 – Transition to subnet

Technical Data

Token Metrics

• Token Name: Dexalot
• Ticker: ALOT
• Blockchain: Avalanche
• Token Standard: ARC20
• Contract: Updating
• Token Type: Utility, Governance
• Total Supply: 100,000,000
• Circulating Supply: Updating
• Initial Market Cap: $1.98M

Token Allocation

Token Sale

The Dexalot IDO on Avalaunch

• Total ALOT for sale: 2.5M
• Price: USD 0.6
• Size: USD 1,500,000
• Vesting — 25% TGE, 3-month cliff, 9-month linear vesting

Registration Schedule:

• Registration Opens: February 18th at 3:00 p.m. (UTC)
• Registration Closes: February 21st at 6:00 p.m. (UTC)

Sale Schedule:

• Validator Round Begins: February 22nd at 6:00 a.m. (UTC)
• Validator Round Closes: February 22nd at 3:00 p.m. (UTC)
• Staking Round Begins: February 22nd at 3:30 p.m. (UTC)
• Staking Round Closes: February 23nd at 6:00 a.m. (UTC)

Token Release Schedule

Token Use Case

• Gas, as the main currency for gas payments when Dexalot moves to its own subnet;
• Governance of the future of Dexalot;
• Staking, as stake-able and delegate-able by validators and delegators to secure the subnet (similarly to how the X, P and C chains of Avalanche is secured) and so as to drive good behavior on the platform;
• Incentives to promote the platform and incentivize users to use Dexalot.

Market and Community

Backers

Team

Partners & Investors

Verdict

Dexalot is not the first project to aim to combine the finest aspects of centralized and decentralized cryptocurrency exchanges. However, the project has delivered on its promises, since both the mainnet and testnet applications are freely accessible to traders. Limit order trading is a natural workflow for many cryptocurrency traders, and Dexalot is certainly an excellent entry point into DeFi for individuals who now prefer to trade through CEXes. Users that like what Dexalot offers will have a lot to look forward to with the imminent introduction of community governance and Dexalot’s transfer to its own subnet.

Find more information about Dexalot:

Website: https://dexalot.com/

Twitter: https://twitter.com/dexalotcom

Telegram: https://t.me/dexalot

Discord: https://discord.com/invite/dexalot

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

Marshall

Coincu Ventures