Dexalot Launches DeFi Trading Subnet On Avalanche

Dexalot, the decentralized cryptocurrency exchange that looks and feels like a centralized platform, has announced a key step in its evolution with its launch on an Avalanche subnet. 

According to Dexalot, the new subnet will serve as a vital pillar of its dual-chain application, with users now able to deposit and withdraw their assets from the exchange on the main Avalanche C-Chain, then conduct trades on the Dexalot Subnet. It explained that the two chains will communicate with each other through a generic message passing mechanism that relies on high-end cross-chain communication protocols. The result, it says, is that users will be able to trade with greater confidence and without giving up custody of their assets, with reduced slippage in trade execution. 

It's a big step for Dexalot that brings it further towards its goal of providing an alternative to the dominance of Automated Market Maker-based exchanges on Avalanche. Dexalot is unique among DEXs in that it employs a Central Limit Order Book to carry out trades, eliminating problems such as high slippage and price execution uncertainty. With its CLOB technology, Dexalot users can place orders at specific prices with the certainty of optimal execution. 

The biggest difference between Dexalot and other DEXs is that it enables limit orders, in direct contrast to other platforms that restrict traders to swapping tokens at current market value. With Dexalot, users can trade at predefined prices, meaning they can adopt more sophisticated trading strategies. Traders are able to set specific order sizes and price limits, with orders that match their price in the order book being immediately executed, and those that are not instead added as a new market order. Traders can also choose if their taker offers are all-or-nothing, as Dexalot also allows for partly completed orders, with the unfulfilled amount added to the market order list. 

As a decentralized exchange, Dexalot intends to enable user governance through its native token ALOT. Being built on Avalanche is an obvious advantage, as it allows Dexalot to leverage that blockchain's incredible speed and throughput to deliver near-immediate finality on all trades. 

The intention of Dexalot is to bring the finest features of centralized exchange platforms to the DEX world, and to that end, its user interface will look familiar to anyone who has previously used Binance, Coinbase, Kraken, etc. 

Dexalot's team said that it has spent months refining its new subnet via the Avalanche Fuji test network and that it's now ready to roll with faster transactions, lower fees, and increased support across spot trading pairs. Avalanche Subnets can be thought of as sidechains, or independent networks specific for the underlying application, which in this case is Dexalot.

Dexalot co-founder and Chief Technology Officer Cengiz Dincoglu said that by leveraging both the host chain and a subnet, Dexalot is optimized for speed, safety, and user experience. "We are looking forward to introducing DeFi traders to the Subnet on the Avalanche network, and to further differentiating our platform from other centralized and decentralized exchanges in the market," he added. 

More intriguing is Dexalot's promise that the unique design can enable it to expand to alternative host chains at some point in the future. The Subnet implementation serves as a kind of blueprint for "multiple ecosystem interoperabilities" that can be created around Dexalot.

To promote the launch, Dexalot said it's kicking off a new incentive program that will see 4.8 million ALOT tokens (worth around $1.5 million at today's prices) distributed to users. To sign up to the Dexalot Incentive Program, all users have to do is connect their wallet to Dexalot, make a deposit of ALOT, AVAX, BTC, ETH, USDC or USDT, and start trading on its platform. The Subnet launch and the incentive program are being promoted via the hashtags #Stake2theSubnet and #Trade2theSubnet.