The first few months after launch will be critical for Dexalot’s long-term viability. A multisig wallet will administer the key aspects of the Dexalot platform until appropriate adoption is reached. Once an appropriate number of users is achieved, a clear and fair plan will transition the operational parameters of the Dexalot platform into a governance model.
With the above said, the intention is to keep this period as short as practically possible. Active and heavy usage of the Dexalot platform through the end of 2021 would allow for a fair assessment of Dexalot’s stability and security. If the usage patterns do not reach enough trading capacity in this period, it can be extended to be able to make a conclusive assessment in terms of system stability and security.
- Q3 2021 - Testnet Launch
- Q4 2021 - Mainnet launch with multisig wallet
- Q1 2022 - Transition to governance
- Q2 2022 - Transition to subnet
Fees at Launch
The current fee structure is shown below. However, they can be changed through the governance mechanism in the future.
- Deposit: No Dexalot platform fees
- Withdraw: 0.2% of the withdrawn asset.
- Add Order: No Dexalot platform fees if an order enters the order book in new status and becomes a maker order. For partially or fully filled orders: no Dexalot platform fees for maker amount, 0.1% of taker amount.
- Cancel Order: No Dexalot platform fees.
The above state-changing functions will additionally incur network fees imposed by the underlying Avalanche platform. These network fees are not collected by Dexalot and they depend on the following two factors: a) the gas the above functions use, and b) the current gas price on the platform. The concepts of gas and gas price are central to the operation of Ethereum Virtual Machine (EVM) implementation of Avalanche’s C-Chain just like the original implementation from Ethereum team. They form an effective mechanism for auto-regulating network traffic and contract implementations. For a more detailed discussion of gas and gas price please refer to the documentation from Ethereum’s website for developers at https://ethereum.org/en/developers/docs/gas.
The Avalanche platform (C-Chain) has dynamic fees currently which fluctuate depending on the demand on the platform, but overall it is significantly cheaper compared to other blockchains (such as Ethereum). Separately, the Avalanche development team is constantly working on improving transactional efficiency and reducing the blockchain fees.
One important caveat for users is that, if a user utilizes a market order that would clear multiple price levels (i.e. the order would need to interact against multiple orders at different prices) to fill, the transaction fee paid would also be higher since more computation would be needed to fill the order. Effectively, simpler operations will incur lower transaction fees.
Trade Pairs at Launch
Dexalot will start with a single trade pair and expects the multisig and governance to gradually add from a pool of 10 trade pairs.The pool includes top traded pairs from existing DEXs on the Avalanche platform.
Research and Development
After the initial launch, Dexalot will need resourcing for new development, user experience enhancements, day to day operations and partnerships. The vision is to pursue a similar model to previously successful DeFi projects where the revenue derived from the Dexalot platform drives the new development, and the allocation of such revenue is dictated by the governance model, i.e. the community and stakeholders of the platform.
The list of groups that may receive funding include (but not limited to):
- Core development team working on projects prioritized by the governance proposals and funding.
- Community members with the necessary skill set working on their own proposals and receiving funding through governance proposals as research grants.
- Contractors brought in to work on some proposed projects to accelerate development or fill gaps in the core team and community’s expertise.