DEXALOT: STAKE TO THE SUBNET
A validator incentive program
Dexalot made significant strides in the viability tests of its central limit order book on the Avalanche C-Chain. Interest in a well-functioning on-chain order book has been very strong and the community has embraced the vision and roadmap with increased participation since Dexalot’s mainnet launch. However, the speed with which Avalanche network and the number of dapps being deployed on the C-Chain has grown so fast that we are now at a crossroads.
The high gas fee environment currently experienced on C-Chain was anticipated by Dexalot, but the explosive growth of the Avalanche network affected projects quite a few months earlier than originally planned. On the bright side, this avalanche of growth in the ecosystem has been a welcome catalyst. It has spurred an incredible amount of attention and interest in Avalanche’s subnet technology. Under Ava Labs’ leadership, the initial priority is to get the projects with high throughput requirements into their own subnets.
Dexalot is now poised to be in the second subnet implementation wave and one of the earliest DeFi projects that will go into its own subnet. Development is moving at full speed with a goal to make the Dexalot Subnet operational in the next two to three months. A key consideration for bootstrapping a vibrant and secure Dexalot Subnet is the creation of attractive incentives for validators for the subnet. Dexalot started the Stake to the Subnet program on Avalanche C-Chain to prepare for this by providing incentives for ALOT holders.
The Stake to the Subnet program allows ALOT holders to immediately earn rewards under two different options, Staking 1 and Staking 2, on the Avalanche Mainnet C-Chain. The underlying smart contracts are designed to emit rewards at their respective constant APRs until Aug 16, 2022 8pm EST. After that the contracts will stop giving rewards. By that time Dexalot aims to bring its more sophisticated staking program online on the Dexalot Subnet. The intention is not to be restrictive but to incentivize the right people to help secure the Dexalot Subnet in the future and allow them to earn decent rewards until then. Therefore, there are no lock-up periods or penalties for unstaking under either option. To get started staking your ALOT, please visit here.
There are two broad user groups that may want to participate in the Stake to the Subnet program: (a) users with relatively large ALOT holdings that may be interested in operating a future node on the Dexalot Subnet and (b) users with smaller ALOT holdings. Both Staking options are open to all users. The main difference between the staking options is that Staking 1 entitles the stakers to future revenue of the Dexalot exchange while Staking 2 provides a higher constant APR rate for the duration of the Stake to the Subnet campaign. Users opting for Staking 1 will also get a higher priority when Dexalot subnet nodes applications are being considered.
The options are created to appeal to a broad population of supporters. Please do your own research as you choose the appropriate option for your situation. The level of participation in this program will partially determine the likelihood a user is selected to be a Dexalot validator. The Dexalot team understands that not all participants of the Stake to the Subnet program will have enough ALOT holdings to qualify for running a validator node. Users with smaller ALOT stakes in Staking 1 will be able to participate in validator rewards on the subnet via a staking contract sharing the validator rewards of Dexalot Foundation’s nodes (this is functionally equivalent to delegation on the Avalanche P-Chain).
Stake to the Subnet
Staking 1 — Benefits and Requirements
Before Dexalot Subnet
- 42.46% APR on Avalanche Mainnet C-Chain based on amount and duration staked (contract emits rewards until Aug 16, 2022 8pm EST).
- Users that stake for at least 2 continuous months have the highest chance of making the priority list for validators on the Dexalot Subnet.
- A staker’s ranking on the priority list for validators is determined by the number of ALOT tokens staked and the duration they are staked for. The more and longer the better.
After Dexalot Subnet
- Users who staked for at least 2 continuous months on Avalanche Mainnet C-Chain will receive a proportionate share of at least 25% of aggregate trading fees collected by Dexalot for up to 1 year*. Total trading fees distributed to all such users will not exceed $5,000,000. This distribution will be weighted by the number of ALOT tokens locked and the duration of the lock on the Subnet.
- Users who stake for at least 2 continuous months on Avalanche Mainnet C-Chain and SELECTED as validators on the Dexalot Subnet will receive all their node’s validation rewards.
- Users who stake for at least 2 continuous months on Avalanche Mainnet C-Chain but NOT SELECTED as validators will have the right to stake on the staking contract on Subnet as delegators. Delegators on this contract will receive the same validation rewards offered on the subnet minus a 5–10% delegation fee.
Staking 2 — Benefits and Requirements
Before Dexalot Subnet
- 63.69% APR on Avalanche Mainnet C-Chain based on amount and duration staked (contract emits rewards until Aug 16, 2022 8pm EST).
- Chance of entering the priority list of validators for the Dexalot Subnet for users who stake for at least 2 continuous months.
- The more ALOT staked and the longer it is staked for will improve a user’s ranking on the priority list for validators.
After Dexalot Subnet
- Users who stake for at least 2 continuous months on Avalanche Mainnet C-Chain and selected as validators on the Dexalot Subnet will receive all their node’s validation rewards.
The Dexalot Subnet will start with a composition of up to 20 nodes run by the Dexalot Foundation and select individuals who pass through a prioritization and vetting process. Strong Avalanche validators are invited to participate in this exciting growth and innovative development of the Dexalot Subnet.
To be selected as a validator you will also be evaluated on your:
- ability to source the minimum stake amount needed (10,000–30,000 ALOT),
- geographic location,
- the staking period your ALOT will be locked for,
- experience running an Avalanche node,
- track record running an Avalanche mainnet node
Happy Staking !!
* or until Governance becomes active to propose/vote otherwise
Writer: M. Nihat Gurmen
Editor: Brad McFall
Graphics: Can Toygar
Dexalot is a revolutionary decentralized exchange aiming at bringing the traditional centralized exchange look and feel to a decentralized on-chain application. Its mission is to bring a truly inclusive and transparent environment where Dexalot users can trade crypto securely and efficiently, with no slippage or custody risk. It is built on Avalanche, the fastest smart contracts platform in the blockchain industry.