Dexalot receives $7 million to build trading infrastructure Dexalot has received $7 million in funding to build the Avalanche network. The funding round was led by Avalanche’s Blizzard Fund with involvement from various Avalanche ecosystem actors and decentralized finance investors. The protocol aims to create a decentralized order book exchange based on Avalanche that allows users to trade any asset with cheap costs, no slippage, and quick price discovery. Avalanche ecosystem contributors comprised of Colony, AVentures, Avalaunch, Avascan, Benqi, and Blizzard. Further, Maven Capital, GSR, Muhabbit Capital, Republic Capital, Woodstock Capital, and IPC are among the new investors. CEO of Dexalot, Nihat Gurman, said: 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. The protocol is an EVM-compatible Central Limit Order Book (CLOB) exchange that runs on the Avalanche C-Chain. It tries to fill in the gaps in Avalanche DEXs, which are currently exclusively AMM-based. Which of the two Decentralized Exchange is Better: Order Book or AMM? As the name implies, an order book records all buy/sell orders for a specific cryptocurrency. A bid is a name for a buy order, whereas an ask is a name for a sell order. The order book keeps track of how many tokens are being solicited or bid at a given price point. The order book organizes the traders’ orders under the price associated with them when they place them. Thus, any DEX dealer may trade the asset as long as supply and demand exist. Depending on the order book, a CEX has generated automatically when a Binance clone script is used to create an exchange. The order book is replaced by a liquidity pool in an AMM or Automated Market Maker-based DEX. The liquidity pool is essentially pre-funded by participants known as liquidity providers or LPs. Each AMM-based DEX has a different manner of rewarding LPs. The LPs essentially take on the role of market makers. Uniswap pioneered the idea of AMM, in which the current liquidity of the trading pair is properly considered using an algorithm. This makes it possible to supply traders with a real-time quote. Automated Market Maker-based decentralized exchanges address one of the industry’s most pressing challenges. Similarly, order book-based DEXs are putting in a lot of effort to increase liquidity. Catch all the breaking news, and Don’t forget to like the story! Image credits: and . Krzysztof Kowalik Austin Distel

Avalanche

Uniswap

Maker

Chain

Binance

Discovery

Funding

KuCoin Partners with Chingari to Distribute $20 Million Rupees Worth of Tokens

Banger Games raises $10 Million from Avalanche to Build the First Blockchain Based Gaming Hub

Read My Stories

Too Long; Didn't Read

Boost your HackerNoon story @ $159.99! 🚀

Dexalot Raises $7 million in funding to build the trading infrastructure on Avalanche 

Dexalot Raises $7 million in funding to build the trading infrastructure on Avalanche

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

$2M Backing and a Vision: How GAM3S.GG is Reshaping Web3 Gaming

A Research Report on the Trader $JOE DeFi Platform

5 Security Incidents Involving DAG Networks—and How to Protect Yourself

Automated Trading Tools Come to the Avalanche's DeFi Economy With Autonomy Network

Avalanche (AVA) — Blockchain 3.0: A Novel Metastable Consensus Protocol

$2M Backing and a Vision: How GAM3S.GG is Reshaping Web3 Gaming

A Research Report on the Trader $JOE DeFi Platform

5 Security Incidents Involving DAG Networks—and How to Protect Yourself

Automated Trading Tools Come to the Avalanche's DeFi Economy With Autonomy Network

Avalanche (AVA) — Blockchain 3.0: A Novel Metastable Consensus Protocol

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps