Built on Arbitrum, Camelot is a decentralized exchange with a strong community and ecosystem emphasis. The name Camelot, which was first used in 2022, is derived from King Arthur’s Camelot Palace, which stands for the Round Table. As a result, the “Knights,” who represent the Round Table knights, are the users and projects that use Camelot to create liquidity pools.
A very effective and adaptable protocol is created by the exchange’s structure. It offers the path for developers and users to have substantial, long-lasting, and flexible liquidity. The exchange also introduces a fresh perspective to DEXs, emphasizing the importance of providing a tailored strategy that prioritizes composability. As a result, they provide unique features like Nitro Pools and spNFTs, which set them apart from standard DEXs.
Through its DEX and launchpad tools, Camelot also hopes to collaborate with and hire native Arbitrum projects.
With the help of Camelot DEX, protocols may specify complex trading costs for their pools, such dynamic directional fees. SpNFTs, on the other hand, are wrapped liquidity tokens that allow liquidity providers greater choices. They may use the plugin features of Camelot to double their yield and set lock periods for liquidity.
The exchange helps new projects by providing advice on how to structure a fair launch based on their particular objectives. They thus effortlessly gain liquidity and token listings.
Key Services and Features of Camelot
One crucial element is the fact that Camelot is a special and extremely effective decentralized exchange designed to support and operate as the native DEX of the Arbitrum ecosystem. It achieves this by creating a durable and robust DEX. The society is thus oriented, and investors’ capital is maximized. It achieves this by utilizing a few crucial elements. Let’s examine these significant attributes.
Automated Market Maker (AMM)
The Camelot ecosystem’s central system is AMM. The approaches used by its development orientation are as follows:
Dual liquidity – Create a lot of personalization and versatility.
Active in fees – Enhance transactional effectiveness and user fee optimization.
Referral – To increase your revenue, support different protocols in the ecosystem.
Additionally, AMM enables automated and permissionless trading of digital assets via liquidity pools. It ultimately replaces conventional marketplaces for consumers and sellers as a result.
You should be aware of the advantages and disadvantages of supplying liquidity before engaging.
Stake Positions (spNFTs)
With “staked position Non-Fungible tokens,” also known as spNFTs, Camelot creates a new liquidity strategy. Every Camelot liquidity pool has its own staking position using spNFTs, which users may create by wrapping liquidity pool tokens.
Users perceive spNFTs as deposit receipts, and they offer better functionality than conventional liquidity providers in this regard.
- They own a special ID.
- They have complete user position parameters, including the quantity of tokens.
- Give the tokens’ value.
- They have a lock time with Multipliers Point and an annual percentage yield (APY).
Staked positions serve as wrapping layers for the tokens of the liquidity providers, offering essentially any liquidity or a single asset. Users of spNFTs may construct complex bespoke strategies using an infinite number of separate staked positions for the same liquidity pool. This can be done using various quantities, lock configurations, or boost systems.
Yield Farming
As Camelot has a dual liquidity mechanism, users that offer liquidity will participate in an incentive program with rewards of $GRAIL and xGRAIL, with a ratio of 80/20, respectively, and will get rewards from the liquidity pool, resulting in “yield farming.”
The exchange offers two main strategies to increase returns from staked positions that provide yield:
- Via locks, in which users lock their possessions for a certain time in order to receive rewards for their tokens.
- Users can utilize their xGRAIL for a staking position (spNFT) using the YieldBooster plugin in order to make money.
Nitro Pools
Nitro pools designate a location where pools may be created that offer liquidity for Camelot’s partner projects and the user base. The project adds a new reward layer in ETH to the Nitro Pool in addition to the incentive from providing liquidity. In turn, this promotes the projects inside’s liquidity. Users will simultaneously get PLS emissions, xGRAIL, and GRAIL after staking in a Nitro pool.
Nitro Pools are classified into two types:
- Official Nitro Pools – Camelot was the creator.
- Community Nitro Pools – anyone can develop it.
Projects in the Arbitrum ecosystem have a finite amount of liquidity. Therefore, it is the ideal strategy for promoting liquidity for Camelot’s partner ventures. In this approach, Camelot will probably serve as the main source of cash for the projects of its current partners, including GMX, Buffer Finance, Sperax, JonesDAO, Dopex, etc.
xGRAIL Plugins
Contracts connected to the xGRAIL contract are xGRAIL plugins. These plugins are accessible to everyone in the Camelot environment. The Camelot team, however, is in charge of developing the original plugins.
Several of the plugins are:
- Dividends Plugin – Through this plugin, the majority of the protocol’s profits are transferred as xGRAIL to users. Every weekly cycle involves continuing dividend distribution.
- YieldBooster Plugin – Users can stake their xGRAIL using this plugin in order to increase their revenues.
- Community Plugins – deploy plugins that are compatible with any other protocol or user. Users must exercise caution while using these plugins, nevertheless, as they are approved by third parties. As a result, Camelot will not be held accountable for such plugins, which necessitate great care when accepting new contracts in order to prevent unwarranted losses.
Governance and DAO
Members of the community can utilize their xGRAIL balance as a governance token. They are able to cast formal proposal votes thanks to the token. Consequently, more xGRAIL equals greater voting power. This method is gasless and doesn’t call for any transactions.
When a proposal is accepted by the community via this method, a DAO made up of team members and advisers carries out the required transactions or contracts and renders the final judgment.
Revenue
Transaction fees from Camelot’s exchange serve as the main funding source. Their Launchpad projects or users of spNFT or Nitro Pools generate the majority of their fees.
The following is how the money raised will be distributed:
- A 60% bonus will be given to liquidity suppliers.
- Holders of xGrail will get a payment of 22.5%.
- 12.5% will be used for Grail’s buyback and burn.
- Core donors will receive 5% in excerpts.
What is Grail and xGrail Token?
The Camelon Token ($GRAIL) went on sale to the general public in conjunction with Camelot Exchange’s formal debut. The main purposes of the token are to raise public awareness of the project and to provide money reserves for future project development. It is significant to remember that there is a maximum supply of 100,000 GRAIL tokens, making them somewhat rare.
15% of the public sale was allocated upfront at the genesis (5% xGrail and 10% GRAIL). Genesis Nitro Pools receive 5% of the public sale while protocol-owned liquidity receives 10%. Over the next three years, 22.5% will go toward liquidity mining, 20% to the primary contributors, 10% to partnerships, 8% to reserves, 5% to the ecosystem, 2% to development, and 2% to advisors.
It is important to be aware that xGRAIL is the escrowed token and is not transferrable. Users can earn xGrail by converting their GRAIL assets or by staking bets that provide a dividend. The governance token, xGRAIL, may be staked in certain contracts using plugins to gain access to a number of advantages.
Fees
| Deposits | Zero fees |
| Trading and swapping | 0.1 to 0.5%, depending on the kind of asset being exchanged |
| Directional fee | 10% on the sell-side and 0.001% on the buy-side |
Camelot’s Security
There are now two significant revealed code audit reports in its document. Paladin completed the two, including the smart contract codes for Grail and xGrail. Major codes linked to basic infrastructure, such as YieldBosster and Nitro pool, are also included in the audit. Investors can feel secure because the Camelot team has solved the issues that were found.
What Makes Camelot Useful?
You might not notice Camelot’s unique characteristics if you’re a cryptocurrency trader or enthusiast. The exchange offers a range of tools and services to help investors boost their margins of profit. Additionally, Camelot offers cutting-edge features that other protocols in the ecosystem may quickly incorporate, expand upon, and use.
The technology also incorporates a DEX and liquidity provisioning into the real yield story. As a result, creative techniques are developed that make use of more sustainable tokenomics, aligning incentives with protocol developers, users, and builders.
