Camelot DEX – Arbitrum native DEX

Table of Contents

Camelot is the most famous decentralized exchange on the Arbitrum blockchain. You can trade, provide liquidity, join the Launchpad & more.

What is Camelot?

Camelot is an ecosystem-focused, community-driven DEX and Launchpad built on Arbitrum.

Camelot has been built as a highly efficient and customizable protocol, allowing both builders and users to leverage their 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.

Camelot’s Features

Camelot provides many different opportunities, today we will go trough everyone step by step to explain the whole Camelot DEX.

Camelot’s Features are:

Trading:

– You can swap your crypto on Arbitrum with different aggregator modes (Native, Paraswap or OpenOcean)

Liquidity Providing:

– You can provide liquidity with their manual V2, V3 or automated by using Nitro’s automated pools or V3 Vaults provided by Gamma/Narrow.

Launchpad:

– Trough their strong connections in the blockchain space, Camelot also has many connections to different founders. Thats the perfect way to find new projects and help them to launch. You can also join those opportunities easily.

xGrail/Grail:

– xGrail is Camelot’s own token, you receive it while providing liquidity as a extra bonus. It can be used for even more dividends, as yield booster and for the launchpad.

Trading on Camelot

Doing a swap of your Cryptocurrency on Camelot is very simple.

How to swap your Crypto on Camelot DEX:

1. Connect Wallet

– Go to app.camelot.exchange and click on “connect”. Choose MetaMask, Coinbase wallet or any other wallet trough WalletConnect.

2. Choose Blockchain

– Since a few months, you can also swap on blockchains like Rari, Reya, Sanko or Xai. You can change your blockchain on the top right side.

3. Set Slippage

– If you want to do a large trade on a token with less liquidity, it may be helpful to change the default slippage from 0.5% to 2% for example. Do this on the swap dashboard, just click on the gearwheel.

4. Select your cryptocurrency

– Select from which to which token you want to swap, approve them then and just click on “swap”.

Liquidity providing on Camelot

Providing liquidity can earn you a great yield, if you do it right.

How to provide liquidity on Camelot DEX:

1. Select a pair

– Start by selecting the pair you want to use for providing liquidity. Take into account factors like trading volume, TVL, and the potential risk of price volatility in the future. Also, check if the pair is incentivized with market maker rewards (V3 manual) which serve as an additional, separate layer of rewards on top of the LP trading fees, or $GRAIL incentives (V3 auto)

2. Select a mode

– The mode you choose depends on the specific utility you seek: Manual mode is tailored for experienced liquidity providers, granting them control over the price ranges of the liquidity they provide Auto mode employs focused liquidity management strategies, handling the intricate task of adjusting price ranges for users

Info:

When liquidity is provided through manual mode, positions are created as LP only and can earn trading fees and market maker rewards. In contrast, when liquidity is provided through auto mode, positions are created as spNFT and can earn trading fees, farming emissions and Nitro incentives simultaneously.

Camelot Launchpad

The launchpads are open to everyone but are structured to prioritize xGRAIL holders. However, under certain circumstances, they might become accessible to the general public

How Camelot’s DEX Launchpad works:

1. Camelot’s custom Fair launch model

– The fair launch model provides a transparent and equal opportunity for users to obtain tokens without having to worry about typical price fluctuations associated with the token listing. The aim of this model is to ensure that all participants have an equal chance to purchase tokens before they become available on the open market.

How is the token price determined?

– The price of the offered token depends on whether the sale employs a fixed price or price discovery model. The specifics are always communicated prior to the start of the launchpad.

Camelot’s price discovery model:

– Price = Total $ raised / sale circulating supply

The fair launch auction begins with a set FDV (Fully Diluted Valuation), and a minimum price for each token is established (e.g., $0.1).

Once the auction raises a predetermined amount (e.g., $1 million), the price discovery phase begins.

During the price discovery phase, the price of each token continuously increases with every purchase made.

Example of a fair launch model scenario without a hard cap:

– Squire contributes $1000 during the first few minutes of the sale when the token price is $0.1, and Knight contributes $1000 on the last day of the sale when the token price is $0.9. The final valuation of the public sale auction is $1 per token, and both Squire and Knight are eligible to claim 1000 tokens each.
The token listing starting price will be $1.

Camelot DEX’s own Token

Camelot build a own ecosystem with different usecases for GRAIL. If you are providing liquidity, you receive xGRAIL as additional reward if your LP offers additional market maker rewards. Those xGRAIL can directly be used in Camelot’s utility ecosystem or can be vested into GRAIL and then sold for USDC as example.

Camelot GRAIL Token:

Token Info

Name: Camelot Token
Ticker: GRAIL
Chain: Arbitrum
Max supply: 100,000 GRAIL
Contract: 0x3d9907F9a368ad0a51Be60f7Da3b97cf940982D8

GRAIL is Camelot’s native token. It can be earned as yield rewards on incentivized staking positions. Trough the small max supply, GRAIL price is higher then most other tokens, currently at $1000.

GRAIL deflationary mechanisms

Buy back & burn
A share of the protocol earnings is dedicated to buy back & burn GRAIL, in order to apply a continuous buying pressure on it.

xGRAIL redeems
When converting xGRAIL to GRAIL, if the vesting duration isn’t the maximum, the xGRAIL:GRAIL ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the GRAIL excess will automatically be burned.

xGRAIL deallocations
When deallocating xGRAIL from a Plugin, a deallocation tax is applied. It can vary between contracts, but will usually be of 0.5%.

The corresponding GRAIL amount will automatically be burned.

Camelot xGRAIL Token:

Token Info

Name: Camelot Escrowed Token
Ticker: xGRAIL
Chain: Arbitrum
Contract: 0x3CAaE25Ee616f2C8E13C74dA0813402eae3F496b

xGRAIL is a non-transferable escrowed governance token, corresponding to staked GRAIL. It can be earned from yield-generating staking positions (spNFTs), or through direct GRAIL conversion.

The central use case for xGRAIL is the ability to allocate it to Plugins. The operation consists of staking xGRAIL into the token contract and assign the deposited amount to a plugin in exchange for various benefits.

How to use xGRAIL

Dividends
The majority of the protocol earnings are redistributed to users who allocated xGRAIL to the Dividends plugin.

This dividends distribution can be done in the form of one or more tokens, and happens continuously (reward/second), through weekly epochs.

Yield Booster
Through the YieldBooster plugin, every user can allocate its xGRAIL to a staked position (spNFT) in order to earn additional rewards from farming emissions.

The induced yield boost multiplier is different based on the staking position’s wrapped LP, but will usually use the default x2 value.

Launchpad plugin
Users can allocate xGrail to the Launchpad plugin and take advantage of the benefits offered by projects launching on the Camelot Launchpad, as well as partners who may not launch directly through Camelot but may still want to provide benefits to xGrail Launchpad plugin allocators.

These benefits may encompass whitelist spots, discounts, airdrops, and other incentives. Specific details regarding upcoming benefits will be shared in advance of each sale through the launchpad plugin app.

Conclusion

Camelot DEX on Arbitrum is a great example on how consistancy in development and community building pays off.

In their beginning Camelot was a small project, now its the most popular DEX & liquidity providing tool on Arbitrum. We really like Camelot and their Grail token.