After GMX, the Arbitrum ecosystem has welcomed another hot DEX protocol, Camelot, and with the rising popularity of the Arbitrum ecosystem, the Camelot native Token $GRAIL is also on the rise. Over the last 30 days, the price of $GRAIL increased from $214 to $2,868, making it one of the top performances on Arbitrum network.
What is Camelot?
Camelot is an ecosystem-centric and community-driven, efficient Decentralized Exchange(DEX), or a launchpad designed to support the Arbitrum ecosystem by building flexible and sustainable liquidity, providing all the tools needed to launch, bootstrap liquidity, and sustain growth for new protocols on Arbitrum network.
How does Camelot work?
At the moment, DEX like Uniswap or Sushiswap holds the most liquidity for top trading pairs such as USDC/ETH, ETH/WBTC, etc from long-term LPs. At the same time, user-provided liquidity is often not sticky as it chases the highest APR. On the other hand, what projects need is long-term LPs that concentrate liquidity in 1 DEX.Therefore, Camelot decided to strongly incentivize their partners to maintain liquidity on their platform. The partnerships with Camelot have gained a share of the DEX and incentivized LPs with $GRAIL and pooled deeper liquidity than the major DEX. With all of these programs going through collaboration and incentivizing liquidity, it becomes a competition between programs to incentivize liquidity. Extremely attractive models and users should be the most long-term beneficiaries with deep liquidity.
One of the distinctive features is Camelot Nitro Pools, which includes Official Nitro Pools deployed by teams and Community Nitro Pools that anyone can participate in deploying. Nitro Pools are additional bonus pools on top of staking positions (spNFT). If a user adds liquidity to a GMX/USDC pool and packs it into a staking position (or creates a pledge position directly through Position), the user starts to receive a staking bonus because the GMX/USDC pool is incentivized. Because the Nitro Pools have additional incentives for the pair, additional revenue is earned by staking the spNFT to the Nitro Pool.
What are $GRAIL and $xGRAIL tokens?
Camelot is running on a dual token system with $GRAIL and $xGRAIL tokens. With total supply of 100,000, the native token $GRAIL can be earned as yield rewards on incentivized staking positions. At the time of IDO, GRAIL liquidity was only 22.5% of the total, including 15% of the public offering (and 5% of that is allocated as xGRAIL, which takes some time to unlock into tradable $GRAIL) and 7.5% of the agreement-owned liquidity (10% total, with 2.5% remaining to be allocated).
While $GRAIL is liquid and tradable, $xGRAIL is the vesting and profit sharing token of DEX that is used for governance and is untradable. Users can swap their $GRAIL for $xGRAIL at a ratio of 1:1 to gain governance access, additional mining acceleration, and agreed revenue. However, redemption of $xGRAIL into GRAIL requires a redemption period of 15 days to 6 months, corresponding to a redemption ratio of 50% to 100%.
What projects are launching on Camelot?
Nitro Cartel (Feb. 17–20)
Nitro is a community governance protocol on Arbitrum dedicated to guiding TVL growth across the Arbitrum ecosystem and allocating capital efficiently and transparently in an Arbitrum-native revenue strategy. Utilize Cartel’s new governance mechanism to efficiently enhance the public good, always compatible with Arbitrum’s zero-headed DeFi protocol. Receive rewards/proportional distribution of any token airdrop from partners and potentially ARBI token airdrops based on value-added contributions to the Arbitrum ecosystem with its core values of decentralization, privacy, and permissionless innovation.
Factor DAO (Feb. 20)
Factor is an asset management protocol coming to Arbitrum that allows users to create a custom vault with access to various tokens and marketplaces through FactorDAO and use the vault to manage their assets on Factor. Factor allows users to add multiple supported tokens to the vault, enhancing users’ marketplace participation and asset flexibility, thus better adapting to trading strategies and risk profiles, and may be a good asset management tool in traders’ minds.
JustBet (TBA)
JustBet is a decentralized gaming platform on Arbitrum whose games rely on blockchain technology with transparent and tamper-evident results and Supra Oracles that generate randomness in the game and also ensure that expenses are not tampered with. The protocol incentivizes players by providing the necessary infrastructure, such as: allowing liquidity providers to earn revenue from betting and platform fees, issuing vWINR tokens, and facilitating the development of the ecosystem.
*Risk Warning
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