Use Dexalot Avalanche L1

In this activity, we'll interact with our first Avalanche L1. The Dexalot Avalanche L1 aims to replicate the user experience of a centralized exchange (CEX) with greater decentralization and transparency. By using a Avalanche L1, Dexalot can offer cheaper transaction fees than other traditional decentralized exchanges while keeping the transparency that centralized exchanges lack.

Display the Dexalot Avalanche L1 in Core

Make sure your Core Wallet is set to Testnet mode, so we do not use real funds. Open your Core Wallet Browser Extension and click "Show all Networks." To display Dexalot to our home screen, click the star icon next to its name.

Bridge Tokens to Dexalot

Head over to the Dexalot Testnet, connect your wallet (top right), and click on the Portfolio Tab. You will have to authenticate your wallet for the first time you interact with Dexalot.

On the Portfolio page, select to deposit 1 AVAX in the Dexalot Portfolio.

A few moments later, your balances should update:

Now head to the Trade tab and sell 0.5 AVAX for USDC. You can select the trading pair AVAX/USDC on the left:

Now, head back to the Portfolio tab and check how the balances updated.

Withdraw to Fuji C-Chain

From the Portfolio tab, withdraw your AVAX and USDC back to the Fuji C-Chain:

What just happened?

On the surface, it might feel like a regular decentralized swap. However, there is a substantial difference. We performed our operation not on the C-Chain, but bridged our tokens to a Avalanche L1, performed the operations there, and bridged our tokens back to the C-Chain.

The Avalanche L1 (Dexalot) we used was highly specialized for our use case and very cheap. We actually got all the gas token ALOT we needed airdropped, just for bridging assets over. The only fees we had to pay were for bridging. Usually, we would not have done this for a single operation, so these costs do not occur for a single trade, but only for depositing and withdrawing from the portfolio.