Dexalot — Avalaunch AMA
December 22, 2021
Read the entire transcript of the Avalaunch-Dexalot Telegram AMA on December 22, 2021 from 3PM to 4:30PM ET-
Wednesday, December 22 from 3PM to 4:30PM ET, Avalaunch hosted an AMA with the Dexalot team on Avalaunch Telegram. Three Dexalot team members joined in to answer questions and discuss Dexalot. In case you missed the live AMA or wish to review the entire set of questions and answers, below is an unedited copy of the conversation. This conversation is a great introduction to Dexalot. Thanks again to everyone who participated in the AMA.
Avalaunch, Hello and welcome everyone to our AMA with Dexalot. This is a project that needs no introduction the world over but you will be getting an intro and then some. 🙂 Sincerely, this is a bonafide game changer for us Avalanchians and I am honored to have not one but three guests from the team. I trust that they are doing well enough and would love to get right into it…so Let’s get warmed up — Let’s start off with a brief introduction about the team here today. Can you tell us about your backgrounds, career path, and how you found yourself working on Dexalot?
the_axol0tl, Hello Everyone. I am one of the co-founders of the Dexalot project. I have a PhD in Chemical Engineering and I am coming from a corporate background in the Oil & Gas sector. I developed, managed and marketed technology products and services in my corporate life. Throughout my career I stayed close to coding projects that have collaborative and innovative technology features. Crypto space was a natural fit for me as it epitomizes these two features.
Quicksilver, Hi guys, I am the CTO and the other co-founder of this project. I have worked in Wall Street for almost 20 years building electronic trading systems on the IT side and I have also held a quant position at JPMorgan’s Statistical Arbitrage Trading Desk. This is my 5th trading system in the last 20 years. I believe, having traded my own HF algorithms, using, in some cases, an electronic trading system that I had personally built gives me a distinct set of tool sets that will contribute to the success of Dexalot. I left WallStreet 3 years ago as I didn’t see the upside for myself and kitesurfed and hydrofoil raced for almost 2 years while keeping my entrepreneurial aspirations alive with a few non-crypto projects. On a personal note, The CEO and I go back 30 years. He called me last year and we initially did an avalanche staking node with an overly unnecessary frontend :) Having caught the blockchain and particularly Avalanche bug, we then decided to go into something much more elaborate. Our very first code checkin was actually on December 25th of last year. And a year later here we are….
T S, Happy holidays everyone. I’m the COO of the company. I’m responsible for the business side of the project, like legal, compliance, accounting, and HR. Prior to joining the team, I spent over 25 year on Wall Street primarily with hedge funds. I was last COO of a global macro fund and was responsible for many things including regulatory compliance, front end trading systems, and risk management. I joined about 2 months ago and hope to leverage much of my Wall Street experience to help Dexalot become the game changer I think it will be.
Avalaunch, You all sound a little underqualified but I’ll take it. 😂Sincerely, good to have three people here today representing the future of Avalanche. Now I’m curious — How many people make up the Dexalot team and what are their roles?
the_axol0tl, hahaha… If we count all roles including the advisors, the team includes 16 individuals. 4 hands-on c-levels: CEO & co-founder (smart contracts), CTO & co-founder (system architecture, smart contracts and market maker), COO (operations, compliance), and CMO. 4 developers (frontend, backend, landing site, and production support — we value that all people gain experience in all subcomponents so roles and assignments change)5 in the marketing team (community admins, visual designers)3 advisors (crypto and product strategists)
Avalaunch, That is a comprehensive collection of individuals. Well done. For anyone that might not know, what is Dexalot, and why is it relevant in today’s DeFi landscape?
T S, Well, we’ve certainly answered this question many times, but always happy to answer it.
Avalaunch, Appreciated. I don’t think it will be the last time. 🙂
T S, Dexalot is a revolutionary decentralized exchange based on a central limit order book (CLOB) aiming at bringing the traditional centralized exchange look and feel through a decentralized on-chain application. CLOB is effectively the type of order book a user would see on centralized exchanges. It is a collection of bids and offers sorted by price and time priority presented to the user in a visually appealing format. The unique aspect is that all activity is happening 100% on-chain using custom-developed smart contracts. They allow a trader to enter limit orders defining their price. By definition that eliminates the impermanent loss that AMM-based decentralized exchanges have to deal with.
Avalaunch, Bridging some of the important legacy stuff to the blockchain. That’s impressive and also complex I would imagine. Operating a CLOB on-chain involves a tremendous amount of complexity at the level of the smart contracts and infrastructure. For the layperson, what does the process of designing such a novel system look like? How do you ensure that the current implementation is the most efficient one?
the_axol0tl, That’s very true. It requires additional effort. To start with, Dexalot smart contracts are completely standalone. Everything we provide in addition in the frontend such as charts, trade history, analytics are complementary for the everyday user. The frontend directly interacts with the smart contracts for real-time trading purposes, and our backend feeds the front end with the data that has already been confirmed on the blockchain. Having said that, anybody can trade with Dexalot smart contracts directly with a few lines of code.
Avalaunch, This is impressive to be sure. As an average user, why would you want to use Dexalot over a traditional CEX? What advantages does it confer?
the_axol0tl, great question, why do they need to care, right?
Avalaunch, Hahaha in not so many words, yes
the_axol0tl, It is a non-custodial, permissionless decentralized exchange. Therefore, for average users the key advantage is that the control of their assets will be in their hands at all times. There are no frequent, unexpected maintenance periods that block deposits, withdrawals or trading in general. Another key advantage is that if you are in a geography.
Avalaunch, There is some modesty in your answer. I’ve glimpsed the UI and it’s exceptional. If the function matches the form, as us NY’ers say…forget about it. Dexalot just launched its mainnet application and things have been going exceptionally well. Were there any unexpected challenges that arose? Has the launch been successful in your eyes?
Quicksilver, Let me pick that up. I have launched an equity trading infrastructure that processed $2 billion/day when I was working at JP Morgan, and comparatively, the Dexalot launch went exceptionally better and smoother. I must admit, listing a single pair coupled with having a limited user base made things easier for us, but we were prepared for the worst case scenarios that we could foresee anyway. As in any launch, we also had some minor hiccups in our auxiliary systems (not in smart contracts) that we were able to correct expeditiously.
Avalaunch, Understood. Forever a work in progress. On CEXs, market makers are critical in ensuring that a liquid, efficient market exists. On a centralized system, this is comparably cheap, technically straightforward and achievable by essentially anyone. What does the process of market making on Dexalot look like and what challenges does it present?
Quicksilver, I’ll continue i guess. I would like to re-emphasize that Dexalot’s every single line of code was written completely from scratch and not a clone of any project out there.
Avalaunch, This is refreshing.
Quicksilver, Hence, we knew from the start that when you launch a new trading interface with a CLOB, we could not depend on anyone else and we had to have our own market maker first and then involve professional market makers down the line — we are speaking to a few already. The very first thing any high frequency trader looks at is the tcost (transaction cost). In our case the gas cost is a big challenge, not only because it exists but also it is variable. So we had to adjust our algorithm along the way and we are still doing so. Having said that, we are also planning to provide the source code for anyone who would like to trade algorithmically.
Avalaunch, Again, impressive. What does listing an asset on Dexalot look like today and in the future? Can anyone list a pair there? How will the listing process eventually differ from the traditional CEX exchange listing?
the_axol0tl, Let me take this next one. The first pair of Dexalot (AVAX/USDT.e) was listed as part of the deployment process. The deployment script was designed to deploy the smart contracts, add the first pair and transfer the ownership of the exchange to a 3-of-4 multisig wallet. With that said, any new trading pair needs to be listed through an approval process by this multisig wallet. Dexalot project members collectively hold only one out of 4 keys required to execute any operational decision for the exchange. Dexalot values community participation and there will be a transition to governance that will guide the decision making of the multisig. I hope this gives an idea about the decision process…
Avalaunch, The governance component is something we have been asked a lot about already. Good to know. Currently, Dexalot is deployed on the c-chain but will eventually be transitioned to an Avalanche subnet. What does this migration look like and why is a subnet important for Dexalot?
Quicksilver, well 2 points really gas cost , and speed. There are a few things, not specific to us per se, that we depend on the Avalanche Team to implement before we can transition to the subnet. Depending on the timelines, and nothing is set in stone yet, we are considering a two phase approach where: In phase one we will have an EVM-based subnet and everything will work as is, with just minor adjustments. Then in phase two where we will have a Custom VM that will give us potentially up to 100x speed improvement.
Avalaunch, The subnet, once a near apocryphal promise of a brilliant future is upon us. Exciting. In what ways might a user expect Dexalot to change once it operates on a subnet?
the_axol0tl, let me continue a bit on this subnet thread now. The user experience is expected to be better with easier transaction completions with less reverts due to gas price changes. Overall, we expect a significant increase in transaction speeds as well as a lower overall transaction costs as our CTO mentioned already. Additionally, the flexibility in coding will allow the team to also add features with new order types or other related products and services.
Avalaunch, That’s super cool. The project went through a testnet phase, and I am wondering what lessons were learned during that period and how did it inform the mainnet deployment?
T S, I’ll take this one….The testnet phase was super critical for us as Dexalot uses a novel code base. We fixed bugs, added new features and identified bottlenecks in the infrastructure. But by far the most important part was the fact that it helped us build a community that cared about the project. Building a community that cares about the project and guides it to a product they would like to use was a key goal for the team. We asked for the community’s help selecting a new logo for example. The original was receiving too many negative comments. Frankly, they did a fantastic job selecting a logo that stands out. We get so many good vibes because of that. Similarly, all our bug fix events and new feature requests received tremendous feedback and helped us refine the user experience. We acquired a few team members from the community as well.
Avalaunch, The community is firm but fair 😀and crucial to any project of course. Good on you for building that component so early and getting community on as team. With security of paramount importance, what steps have been taken to ensure that Dexalot is free from vulnerabilities and will be a safe, reliable place to trade?
the_axol0tl, another great question and topic… We fully agree that security is of paramount importance. To this end we tried our best to use well-audited libraries of OpenZeppelin to build on at the smart contracts level. We also did two private security audits and three public security audits by Hacken. We plan to trigger a security audit whenever an update is done for smart contracts. Additionally, we did extensive hardening at the infrastructure level to increase the resilience of Dexalot in this age of distributed attacks and scanners, etc. We will soon announce a bounty program as well to encourage community members skilled in security to contribute to the project.
Quicksilver, May I add something quickly ?
Avalaunch, Of course
Quicksilver, the achilles heel of most smart contracts is their interaction with other unknown smart contracts, ie. a malicious ERC20 token.
Avalaunch, The floor is yours.
Quicksilver, Since a multisig decides which new pairs to be listed on Dexalot, the probability of interacting with a malicious contract is very limited.
Avalaunch, Ahhh that makes sense. Appreciate the thorough response and comprehensive approach to what is a critical concern for any project. What about the Avalanche blockchain makes the Dexalot platform and vision possible? Could this be built anywhere else. Why Avalanche?
Quicksilver, Avalanche is the best :)
Quicksilver, Sure There are similar products in existence in the greater crypto ecosystem. However, in our humble view, none of them can combine the level of decentralization (~ 1,200 validators) with the quick finality (1–2 s) the Avalanche platform provides. The best part is that this is without even going to subnets. If we incentivize the subnet correctly and maintain a good decentralization there will be no competitor that can provide a truly CEX experience like Dexalot can.
the_axol0tl, one other key factor is Avalaunch is on Avalanche…
Avalaunch, Don’t make us blush. Appreciate that. For our final question on this leg of your AMA journey — Tell us about the short-term roadmap for Dexalot? What are the most-near milestones the team is chasing down?
the_axol0tl, Let me do that one, We are working hard to make the subnet a reality for Dexalot. We want to see a Dexalot virtual machine with its own validator set adding its transactions to the chain faster than any solution out there.
Avalaunch, Thank you And congratulations. We are now going to move on to the Twitter portion of the program. I will now pass the mic to our friendly neighborhood @shahi297 who will take over. For the Dexalot team, we have chosen a few extra questions and thus, there will be a few more winners. Lovish, whenever you are ready, feel free to shoot some questions off.
Lovish Shahi | Avalaunch, Hey guys, love to see you all here, Dexalot is one of my favorites, I’m glad you came :)
the_axol0tl, Nice to meet you Lovish. Glad to be here. Thank you so much!
Lovish Shahi | Avalaunch, Let’s get started with Twitter questions, Avalaunch community is happy that you decided to answer two additional questions. Our first twitter question @QuNguyn61793298 — Where do you see the actual benefits of the Dexalot token in the future, in contrary to using for example ETH for everything?
T S, Let me take this one…. Unfortunately (and I know this will not be a popular answer), but we can not speak too much about the Dexalot token as the Dexalot foundation will handle all matters related to the token. The Dexalot foundation is being set up as we speak and will be fully formed in early-2022. However, we expect that it will provide the utility of serving as a gas token, providing operational rewards and managing governance in the subnet phase, pretty much like ETH or AVAX does for their own blockchains.
Lovish Shahi | Avalaunch, Thats still some real utility I must say. Second question- @nicole_binuya — Many people judge a project by token price — What do you feel can sustain demand and price for your token?
the_axol0tl, We don’t have a token. Therefore, I cannot answer the token price question. However, in general, we would like to be judged based on how well we deliver on our promise to provide a truly CEX-like user experience to the community. This will require a smooth transition to subnet and to ensure the speed and cost advantages are realized by the community.
Lovish Shahi | Avalaunch, Well Thats a user experience Avalanche community is really waiting for. Third twitter question @nation90_zam — Many projects just copy each other and forgot the innovations — what is your favorite, unique feature of Dexalot?
T S, @hydrofoilracer why don’t you take this one…
Quicksilver, you know me so well already after two months :) Yes I have a favorite. We believe our whole project is unique but if I personally were to pick one, from a fellow trader’s point of view, I would pick our display of price feed from different sources. I personally hate to go back and forth between browser tabs to check prices from different sources when comparing markets.
Lovish Shahi | Avalaunch, Well I guess soon its gonna be favourite of a lot of us. Lets get to the next question Question four@Andrew58184012 — What pIans do you have to raise awareness to help peopIe understand the advantages of your technoIogy?
T S, I’ll take this one guys…We plan to do more AMAs to raise the awareness of Dexalot. Additionally, we are preparing educational materials that will be shared over our Medium channel. Articles on trading and development will appear regularly there to demystify some of the aspects of Dexalot technology and help the community to adopt it more.
Lovish Shahi | Avalaunch, Fifth twitter question @Kingamanee — What role does the community play in major decisions taken and in determining the direction of the project?
T S, I’ll keep going…We currently listen to our community as much as possible i.e logo, product fixes and features but we are still in the infancy stage and one of our 2022 targets is to build a dedicated and mature community that can give our project direction in major decisions.
Lovish Shahi | Avalaunch, Thats short n crisp Two more questions and we are done with this section. next one@evgenia435 — When building a project, in addition to focusing on its products, it must give it a name attached to the project. So, why do you name Dexalot as the name for your project?
Quicksilver, the_axol0tl thats def for you
the_axol0tl, thanks…We were looking for a cute, resilient and resourceful animal to identify the project with. My daughter suggested Axolotl, the team liked it and we made a wordplay converting it to Dexalot.
Lovish Shahi | Avalaunch, You made a wise decision :)
the_axol0tl, Thank you,
Lovish Shahi | Avalaunch, Last one @HTh24720028 — Is Dexalot a global project? Is there a plan to cover Korean, European and African communities? will you launch multiple language lines for non-native English speakers?
T S, I’ll take this one….Dexalot aims to be truly a global project. In due time, as per community needs, additional languages will likely be added.
Lovish Shahi | Avalaunch, So we are done with the twitter questions here. So far I must say it was very informative for our community. lets keep it rolling! Next up is your final leg of the journey — where we unmute the chat and let our community ask some questions. After we mute the chat once more, please reply to five you like and we will let you go in peace. Thanks for all this information so far, it has been enlightening.
Lovish Shahi | Avalaunch, Guys, I know you have a lot on the table😂 but please choose just 5
[In reply to Uci Suryadi] Dexalot is currently still in Beta, which means there are still features or improvements to be made. What features or additions are you planning for Dexalot?
the_axol0tl, We can expect to see different order types and integration with different projects that will give convenience and value to users. Another key feature will be a reward system.
[In reply to Jude Laww (FormerlyNaufalRf6 )] Q1. Every innovation in technology means it must contain a concept about “EFFICIENCY” by its use case. So, what makes you believe that Dexalot’s innovative feature could be a solution to overcome the common pain on blockchain industry; especially in DEXes sector?
Q2. What is the fundamental objective of Dexalot project? and why should we care?
Quicksilver, The Efficiency comes with our subnet implementation. We can control the gas and the speed rivaling CEXs. The ultimate goal is to be able to provide the experience of the big Central Exchanges, without sacrificing security
[In reply to Darkshark] What is the biggest weakness of your project and how do you plan to enhance it?
the_axol0tl, I believe the biggest weakness for us is the fact that we are operating in an environment where we have gas to pay for every state change. However, that’s a given as we have a 100% on-chain order book. Our weapon of choice will be subnet implementation. Kudos to Avalaunch community. There are so many good questions. simply amazing.
Lovish Shahi | Avalaunch, Well thats three down, two more to go 👍
[In reply to Linh Nguyen] Marketing is a central element for every project, so that everyone knows the potential that a project can bring is vital to achieve the goals set. What is your strategy to attract new users and Investor to your project and keep them long term?
T S, We agree that marketing is critical for Dexalot. We actually just brought on a highly experienced Chief Marketing Officer to join the team, who will be responsible for creating a global marketing strategy to promote Dexalot within the Avalanche eco system and beyond. We aim for Dexalot to be used by all. As for keeping them long terms, we obviously have to create a great user experience. And we feel we have the team given our extensive experience in finance and technology.
[In reply to James Foster] Which one of these aspects is important for you?
1-Increasing Token Price & Value
2-Empowering Platform Development
3-Building Community Trust
4-Expanding Partnership Globally
In what order?
the_axol0tl, Let’s answers this one as it asking us to rank certain aspects of the project.
Anything that has community will be the first in our book. Then we will focus on platform development and global partnerships (as no one can do it alone),
3-Building Community Trust
2-Empowering Platform Development
4-Expanding Partnership Globally
if we do the first 3 right the last one will come naturally we believe.
1-Increasing Token Price & Value
Lovish Shahi | Avalaunch, Nicely done! We finished on a strong note.
the_axol0tl, Thank you Avalaunch guiding us through our first AMA.
T S, Thank you for having us. And again, happy holidays to everyone!
the_axol0tl, Community, many thanks for yor time and great questions..
Matt ∀ | Avalaunch, Thanks for joining us :)
Writer: 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-chainapplication. 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.