Avalanche-based Order Book DEX Dexalot Secures $7 Million in Latest Funding Round

Dexalot, an innovative decentralized exchange (DEX) that aims to bring the user interface of traditional centralized exchanges to decentralized on-chain applications on Avalanche (AVAX) today announced it had raised $7 million in its latest funding round.

Dexalot Raises $7 Million

Dexalot is committed to developing a decentralized order book exchange on the high-performance, low-latency, and affordable Avalanche blockchain.

In the latest development, Dexalot announced it had raised $7 million in its latest funding round led by Avalanche’s Blizzard Fund (‘Blizzard”). The funding round also witnessed participation from several Avalanche ecosystem players and DeFi investors.

Besides Blizzard, Dexalot’s funding round saw participation from Avalaunch, Colony, Benqi, AVentures, and Avascan. Other partners who joined are Republic Capital, GSR, Muhabbit Capital, Woodstock Capital, Maven Capital, and IPC.

What Is Dexalot?

For the uninitiated, Dexalot is a Central Limit Order Book (CLOB) exchange that runs on the eco-friendly and EVM-compatible Avalanche C-Chain. Dexalot aims to bring a degree of variety to the majorly AMM-based DEXs in the Avalanche DeFi ecosystem.

Despite AMMs’ unparalleled success and contribution in bringing DeFi to a large audience, they suffer from suboptimal performance for market makers due to uncertain price execution, high slippage, and low capital efficiency.

As an alternative, Dexalot promises a classic CLOB system to make sure the market makers get to place orders at precise price levels with optimum execution.

Further, Dexalot aims to tackle a wide array of problems associated with token listing on AMMs via its innovative Dexalot Discovery. Essentially, Dexalot Discovery combines the benefits of CLOB with a novel auction system to allow investors (seed, private, IDO, and public) to enter no slippage orders over the course of a period.

Dexalot Discovery helps in eliminating the speed advantage of bots and allows users to see, buy, and sell tokens in a transparent manner. It also matches buyers and sellers fairly at the end of the process.

Through Dexalot Discovery, users can send limit orders that operate sequentially, i.e., each order placed on the DEX is either treated as a “taker” and instantly matched or as a “maker” order on the order book.

It’s worthy of note that the system is not all-or-nothing, meaning that taker orders that can only be filled partially are subsequently placed as maker orders to absorb the remaining token liquidity. Notably, price-insensitive market orders will also be turned on for some pairs.

Community-first Outlook

Dexalot has been operating on testnet since August 2021 and has already registered over 250,000 transactions and more than 12,000 unique wallets who have used the testnet DEX.

Dexalot aims to include the community members in the project’s governance to ensure a strong community for the DEX from day one.

Commenting on the development, Nihat Gurmen, CEO, Dexalot, said:

“We’re very excited to receive support from everywhere across the Avalanche ecosystem. 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.”

Similar sentiments were echoed by Emin Gün Sirer, Director of the Avalanche Foundation. He said:

“Dexalot is pioneering a new generation of decentralized exchanges, 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.”

Lydia Chiu from Blizzard the Avalanche Fund, noted:

“As a central limit order book, 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 across the Avalanche community.”