dexalot review

Ever feel like using decentralized crypto exchanges (DEXs) is kinda... clunky? You're not alone! Even though tons of money is now flowing through DeFi, trading on DEXs can be way less smooth than using those slick centralized exchanges (CEXs) we're all used to.

But guess what? Someone's trying to fix that! Let me introduce you to Dexalot.

So, What's the Deal with Dexalot?

Basically, Dexalot is building a decentralized crypto exchange that's trying to give you the best of both worlds. Imagine a DEX that's as easy to use as your favorite centralized exchange, but you still keep control of your own crypto – cool, right?

Dexalot does this by using something called a central limit order book (CLOB). Think of it like a traditional stock exchange order book, but on the Blockchain! They've built it on Avalanche, which is a super-fast blockchain.

Why go for a CLOB instead of the usual DEX thing, which is called an Automated Market Maker (AMM)? Well, AMMs have some quirks. Sometimes you get "slippage" (where the price you thought you'd get isn't what you actually get), and if you're providing crypto to these AMMs (liquidity providers), you can face something called "impermanent loss" – yikes! Plus, AMMs aren't great for setting specific prices you want to trade at (limit orders). Dexalot is aiming to solve all these headaches!

On the flip side, compared to centralized exchanges, Dexalot lets you be your own bank! You hold your private keys – meaning YOU are in charge of your crypto, not some exchange. And everything is transparent! Dexalot's trading system is open for everyone to see, so no sneaky stuff behind the scenes. If you're all about decentralization and don't want to trust a third party with your coins, Dexalot might be right up your alley.

Limit Orders? Yes, Please!

One of the biggest things Dexalot is bringing to the table is limit orders. Yep, just like on those CEXs you might be used to! Most DEXs usually only let you swap tokens at whatever the current market price is. But with Dexalot, you can actually set the price you want to buy or sell at. This opens up way more trading strategies and makes things much more familiar for traders coming from traditional exchanges. They're even planning on adding market orders too, for super quick trades when you just need to buy or sell now.

And here’s a neat touch – Dexalot handles orders flexibly. If only part of your order can be filled at your price, it'll fill what it can and leave the rest as an order waiting to be filled later. Smart, huh?

Safety First!

Don't worry, Dexalot isn't just throwing code out there and hoping for the best. They've had their code checked out – like, a lot! A company called Hacken has done a bunch of security audits on their platform. And they say they'll keep getting audits whenever they update things, which is good news for keeping your crypto safe.

Avalanche: The Speed Machine

So why did Dexalot pick Avalanche? Well, building a fast and smooth DEX with a traditional order book needs a blockchain that can handle a lot of action without slowing down. Other projects tried this on slower blockchains and ran into problems like slow trades and high fees, making for a not-so-great experience.

Right now, Dexalot is running on Avalanche's "C-Chain" – think of it as the part of Avalanche that's friendly to apps built for Ethereum. This made it easy for developers to jump in and build on Avalanche. Avalanche is already a big player in DeFi, with billions of dollars locked up in apps there – making it the fourth largest DeFi scene! Dexalot is set to be a bit different from most DEXs on Avalanche, which are usually AMMs.

But get this! Dexalot has even bigger plans. They're going to move to their own special part of the Avalanche network called a "subnet". This would be like having their own superhighway for transactions! It means even faster trades and lower fees for users. Awesome!

What Can You Trade?

Right now, you can trade tokens that are based on the Ethereum standard (ERC20) on Avalanche. Think of these as tokens that were originally made for Ethereum, but are now living on Avalanche. You can trade them against AVAX (Avalanche's main coin) or other ERC20 tokens. Right now, they have AVAX/USDC and AVAX/USDT pairs, but expect to see more trading pairs popping up as Dexalot grows.

The Dexalot App: Looks Familiar!

Dexalot is aiming to feel familiar to anyone who's used a big crypto exchange like Binance or Coinbase Pro. When you open the Dexalot app, you'll see things you recognize: price charts, order books showing who wants to buy and sell, and a history of recent trades. You can also check your own orders, your crypto balances, and your deposit/withdrawal history. Easy peasy!

Right now, you can connect to Dexalot using MetaMask, which is a super popular crypto wallet. It would be cool if they added support for more wallets in the future, though.

The ALOT Token: Power to the People!

Dexalot is launching its own token called ALOT. This token will be used for a few things. First up, governance! If you hold ALOT, you'll get to vote on how Dexalot is run. Think things like setting trading fees, deciding which tokens to list, and how to spend money on development. They're planning to start this community governance in the second quarter of 2022.

Also, when Dexalot moves to its own subnet, you'll need ALOT to pay for transaction fees on that subnet (kind of like gas fees on Ethereum). And you'll be able to stake ALOT tokens to help keep the Dexalot network secure and earn rewards for doing so!

Here's how they plan to split up all the ALOT tokens:

50% - Operational rewards: For keeping things running and rewarding users.

14% - Foundation: For the Dexalot foundation to support the project.

12% - Team: For the people building Dexalot.

10.5% - Investors: For those who invested early on.

4% - Liquidity: To encourage trading and make sure there are enough tokens available.

4% - Avalanche Blizzard Fund: Supporting the Avalanche ecosystem.

3% - Dropalot airdrop: Giving tokens away for free to early supporters!

2.5% - Avalaunch IDO: Another way to distribute tokens.

Big Steps Along the Way

Dexalot's main platform went live in December 2021. But they had a test version running since August 2021, and the community really helped out by testing it and giving feedback. Dexalot even gave away AVAX tokens to the most active testers – sweet!

Looking ahead, the biggest thing on Dexalot's roadmap is moving to their own Avalanche subnet. They're aiming for this to happen in Q2 or Q3 of 2022. Once that's done, they believe Dexalot will be able to go head-to-head with centralized exchanges in terms of speed and performance.

The Bottom Line: Worth Checking Out!

Dexalot isn't the first to try and make a DEX that's as good as a CEX, but they're actually doing it! You can already try out their main platform and test platform right now. If you're a trader who likes using limit orders, Dexalot could be a really smooth way to jump into DeFi. And with community governance and the move to their own subnet coming up, there's a lot to be excited about for Dexalot!