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Overview

Camelot is an ecosystem-focused and community-driven DEX built on Arbitrum.
Camelot has been built as a highly efficient and customizable protocol, allowing both builders and users to leverage our custom infrastructure for deep, sustainable, and adaptable liquidity. Camelot moves beyond the traditional design of DEXs to focus on offering a tailored approach that prioritises composability.
Disclaimer: this wiki is still a work in progress. Some pages aren't complete yet, and some corrections and adjustments to its content might be applied.

Our objectives

  • To provide the Arbitrum ecosystem with a wide range of innovative features, enabling them to have an extremely high degree of flexibility and control over their own liquidity
  • To support new protocols launching on Arbitrum, providing the tools that enable them to launch, bootstrap liquidity, and sustain their growth
  • To make available to all permissionless tools allowing projects of all sizes to leverage our protocol in whatever way suits their needs
  • To deliver state-of-the-art functionality that can be easily integrated, built upon, and leveraged by other protocols within the ecosystem
  • To apply the real yield narrative to a DEX and liquidity providing - creating innovative emissions strategies that leverage more sustainable tokenomics, aligning incentives with builders, users, and the protocol
  • To be as decentralized as possible, allowing the community to drive the protocol forward as a DAO, whilst enabling the core team to sustainably build the protocol

Feature-rich AMM

Camelot is based on a dual AMM able to support both volatile (UniV2) and stable (Curve-like) swaps.
As well as this, we're also introducing dynamic directional fees for our trading pairs: this allows different fees to be set for each pool, and also to have different fees depending on the direction of the swap (buying/selling).
These innovative AMM features allow us to provide pool configurations that are much more customized and tailored to the specific trading pairs.

Next-gen yield & incentives

A key feature for Camelot is the introduction of a brand new liquidity approach based on non-fungible staked positions.
These yield-bearing positions act as an additional layer on top of the usual LP tokens, adding new features that will benefit both users and protocols:
  • The handling of locks on staked positions and their associated yield boosts
  • Significantly improving capital efficiency through the introduction of various custom staking strategies
  • A unique re-usability, whether it's through our own protocol with for instance our Nitro Pools, or through the unlimited potential of external implementations

Permissionless

We firmly believe that offering to protocols the right to directly interact with Camelot without any consent nor intervention from the team is essential, and that this should be the absolute standard for a modern AMM.
Through our permissionless Nitro Pools, projects have a full control on their incentives, and have extremely flexible options to build the exact type of liquidity they need to thrive. Whilst protocols will have full control to incentivize and manage their liquidity how they like, Camelot will additionally provide a tailored strategy to help achieve their goals.
Our custom launchpads will also be completely permissionless to give all projects the equal opportunity to bootstrap their token launch and liquidity, along with several models to choose from to cover every different need. Camelot itself will launch through the launchpad, and we therefore see it as a viable option that allows teams to raise funds and liquidity in a completely decentralized and community-driven way.

Long-term sustainability

Camelot is based on a dual token system, consisting of the native liquid GRAIL and its escrowed version xGRAIL, a non-transferable governance token, both being used as farming rewards.
Most emissions are distributed in xGRAIL, providing a high level of control on the supply flow on the market. This allows us to create a healthy balance between attractive incentives to grow initial liquidity, whilst ensuring that we are preparing for the long-term health of the protocol.
The set up of a supply hard cap, carefully crafted emissions and additional deflationary mechanisms, will be another important piece of the puzzle to ensure long-term sustainability of Camelot's tokenomics.
Protocol earnings, initially coming mostly from the swap fees, will be partly redistributed to the xGRAIL users in the form of real yield, and used on buy back & burns in order to maintain a constant buying pressure on GRAIL.
Last modified 1mo ago