AVAX token gets $3M from Avalanche Foundation

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AVAX token gets $3M from Avalanche Foundation

If DEX hits volume milestones over the next 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 by the Avalanche Foundation, running on its own Avalanche subnet.

Dexalot will disperse the money over the next 12 months, beginning this fall, through Dexalot's established incentive program. The funding remains a condition of Dexalot's DEX reaching volume-based milestones.

Since its creation in February 2023, Dexalot's Subnet has processed more than 12 million transactions.

The Avalanche Multiverse initiative, funded by AVAX token donations, aims to accelerate the growth of Avalanche Subnets - independent app-specific networks.

The AVAX token has been down 9% for the last two weeks. Dexalot's native ALOT token is up 15% over the same period.

A central limit order book is a live list of buy/sell orders for an asset, organized based on price, time, and priority, and is the model used by centralized exchanges. The automation model used by many DEXs is different from the Automated Market Maker model, where prices are determined by the ratio of assets in liquidity pools.

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

According to Dexalot COO Tim Shan, other layer 1 and layer 2 networks were insufficiently performant to build a CLOB DEX.

The Defiant said Shan's work was 'decentralized'.

The Avalanche Subnet offers high throughput and milliseconds fast time-to-finality, as well as full transparency, and predictable gas fees. Market makers are benefiting from these features, providing liquidity to order books with tens of thousands of daily orders, according to Shan.

It's 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 raises funds for tokens rather than disbursing them upfront and risk teams losing motivation, as the foundation establishes milestones that forestall the release of AVAX tokens until met.