Use Dexalot L1
Get first hand experience with an 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 Balances Tab in the Trade page. You will have to authenticate your wallet for the first time you interact with Dexalot.
On the Balances tab, select to deposit into the Dexalot L1.
Enter 1 AVAX and click Deposit. Confirm the transaction in your wallet.
A few moments later, your balances should be updated in the Balances tab:
Swap Tokens on Dexalot L1
Now head to the Trade tab and sell 0.5 AVAX for USDC. You can select the trading pair AVAX/USDC on the top right. The website will prompt your wallet to switch networks to the Dexalot L1. Confirm the switch and then sign the transaction.
Now, head back to the Balances tab and check how the balances updated.
Withdraw to Fuji C-Chain
From the Balances tab, withdraw your AVAX and USDC back to the Fuji C-Chain by clicking on the "Withdraw To Wallet" option in the drop down menu:
Make sure the network is set to Fuji C-Chain and enter the amount you want to withdraw. Click on the Withdraw button and confirm the transaction in your wallet.
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.
