DeX DEX gets $3M from Avalanche Foundation

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DeX DEX gets $3M from Avalanche Foundation

If DEX hits volume milestones over 12 months, AVAX Tokens will be distributed as trading rewards.

Dexalot, a fully on-chain central limit-order book DEX, has been awarded $3M in AVAX tokens from Avalanche Foundation, running on its own Avalanche subnet.

The foundation will disperse the funds over the next 12 months, beginning this fall, through Dexalot's established incentive program. The funding remains contingent on Dexalot's DEX reaching volume-based milestones.

Since it was launched in February 2023, Dexalot's subnet has processed over 12 million transactions.

The program's $290 million Avalanche Multiverse initiative focuses on AvaX tokens to accelerate the growth of Avalanche Subnets, independent app-specific networks.

The AVAX token has experienced a drop of 9% over the last two weeks. Moreover, Dexalot's native ALOT token is up 15% over the same period.

A central limit order book is a list of buying and selling orders for an asset, organized based on price, time, and priority, and is the model used by centralized exchanges. This compares to the Automated Market Maker model, which many DEXs use, where prices are determined by the ratio of assets in liquidity pools.

CLOBs offer a better trading environment than AMMs, as they provide real-time price discovery through direct matching of buyers and sellers, resulting in potentially tighter spreads and more efficient markets.

Other layer 1 and layer 2 networks were no longer performant to build a CLOB DEX, Dexalot COO Tim Shan said.

The Defiant said Shan was decentralized.

The Avalanche Subnet provides fast throughput and milliseconds fast time-to-finality, as well as full transparency, and predictable gas fees. These features benefit market makers, who offer liquidity to order books with tens of thousands of daily orders, he said.

It is important to continue to follow up with teams through the duration of the program and help guide them to success within our ecosystem and the greater crypto landscape as a whole, said Luigi D'Onorio DeMeo, head of DeFi and DevRel at Ava Labs.

The Foundation structures funds the tokens through milestones that prevent the release of AVAX tokens until they have been met.