Dexalot’s Subnet exchange
a Dex-v-Cex comparison
Let’s take a look at how the Dexalot decentralized exchange compares to centralized exchanges…
Exchanges are marketplaces for cryptocurrencies. Centralized exchanges (CEXs) are organizations that use a similar business model to traditional asset exchanges like stock exchanges. CEXs include Binance, Coinbase, Gemini and Kraken. Decentralized exchanges (DEXs) operate like a peer-to-peer network without a central authority. Dexalot is a Dex.
- Centralized Exchanges (CEXs)take your assets and put them in their own wallet. This property of CEXs established the saying “not your keys — not your crypto.” Dexalot is contrastingly, non-custodial. Your assets do not go to a specific entity, they stay rather in the blockchain. You are empowered by Dexalot to own your own trade!
- Centralized Exchanges can shut off withdrawals and deposits. Dexalot is wisely on-chain, with withdrawals and deposits controlled by smart contracts, not by the exchange itself nor any privately accessible black-box solutions that CEXs may have employed. Dexalot puts all that power in your own interest and ability to withdraw and deposit at any time. Without having everything visible on-chain in the order book as Dexalot does the level of transparency is significantly lower for CEXs.
Dexalot minimizes informational asymmetry. CEXs may shut down from time to time disabling clients first, but in doing so they have been known to keep their market makers open, giving some preference to insider information. Dexalot market makers access the Dexalot exchange in the same way that users do and are thus outside the decentralized exchange in this respect and are thus subject to the same access that users are. No superpowers are given to market makers over users as has happened on some CEXs!
Because Dexalot is a CLOB , a transparent “meeting of the minds” between buyers and sellers ( Emin Gün Sirer All Access Ep. 7) built on Avalanche, it is able to improve on the capital efficiency of trades beyond that generally observed with CEXs.
CEXs are thus the friendly dinosaurs of everyone’s World Wide Web 2.0–2.5 experience, replaceable by the decentralized “Pow” extraordinary powers of Dexalotl Avangers who own all of their own trading activities. A cex mass extinction is in the offing following mass adoption as a happy accident. The Dexalot Subnet is the way… Stake2theSubnet.
This motivated migrational potentiality is based on Dexalot’s mission to bring the look and feel of traditional finance to users decentralized everywhere on the blazingly fast Avalanche platform with sub-second finality. The Dexalot Subnet accentuates this already superior development environment. Dexalot is a CLOB, a central limit order book. CLOBs are transparent constructs where you can see who’s buying and who’s selling.
As Gün said, Dexalot is …
“Where somebody is saying, “Hey buy this thing at this price” and the other one is saying, “Sell this thing at this other price” and internally implements an order book and there is a bunch of bid orders and a bunch of ask orders. There is a spread. And people come in potentially with limit orders of their own or with market orders and they execute against the book, against other standing orders in the book.”
When compared with CEXs the Dexalot Subnet will produce an improvement in cost efficiency as well as an increased speed of operation. Listen in above to hear Dexalot’s founders describe how and why thousands of users may become millions and billions as the Dexalot subnet increases its actual Web 3.0 contribution to decentralization.
The Dexalot subnet can implement different things. Dexalot can take the current Avalanche EVM (Ethereum virtual machine) and put it in the Dexalot subnet as is. The increase in speed of this operation has been estimated at about a10x improvement. Thus many more markets can be included in the Dexalot subnet without making any functional difference in the blazingly fast user experience while also making the same experience you have come to know so well, even faster…
The cost improvement is going to come from using $ALOT as the gas token.
Dexalot can set its own gas prices. In addition, Dexalot will have native precompiles that permit custom gas prices for particular actions, such as entering an order.
In addition, Dexalot is working on decentralizing its cloud data storage solution.
Overall, the internet of finance where centralized mediators are replaced with code is an extinction-level event for economic systems that refuse to change with the times and the Web 3.0 portals that have already been deployed.
Writer : Brad McFall
Graphics: Can Toygar