What is Camelot? — Ratings & Analysis
As the “Incubator” in the Arbitrum ecosystem, Camelot brings plenty of liquidity to Arbitrum. What is Camelot? What makes it special? Let’s find out together.
What is Camelot?
Camelot is a DEX built on Arbitrum. It has developed a set of customizable liquidity infrastructures, designed to provide more liquidity and composability to Arbitrum ecosystem. In addition to DEX, Camelot also contains a Launchpad that helps projects within the Arbitrum ecosystem to conduct token public sales and raise funds.
Camelot started on November 22, 2022. It launched its token public sale on the 29th of the same month. The name Camelot comes from King Arthur’s Camelot Palace, symbolizing the Round Table. All users and projects that use Camelot to build liquidity pools are referred to as Knight, symbolizing the Knight of the Round Table. Since Camelot was built around the Arbitrum network, these people can also be considered as “Knights” who help build the Arbitrum ecosystem.
Camelot DEX is based on the AMM model and uses a dual-liquidity model in its trading. Camelot uses different formulas for volatile pairs (e.g. $GRAIL:$ETH) and stable pairs (e.g. $WETH:$ETH).
- For volatile pairs, Camelot uses the standard constant product formula based on Uniswap v2.
- For stable pairs, Camelot uses the Solidly curve formula.
Camelot DEX supports customizable, dynamic, directional fee settings. Projects can set and adjust transaction fees for deploying AMM pools with Camelot, setting different transaction fees for different directions (buying or selling).
The Camelot DEX transaction fees will be distributed as follows:
- 60% for Liquidity Providers in LP tokens
- 22.5% for xGRAIL holders
- 12.5% dedicated to GRAIL buyback and burn
- 5% to the Core Contributors funds
In addition to customizable transaction fees, Camelot DEX also supports custom liquidity incentives. Using the Nitro Pools feature developed by Camelot DEX, AMM pool deployers can customize liquidity incentive parameters including incentive method, reward token, incentive start and end times, etc. to meet the liquidity incentive needs of projects at different stages.
Camelot Launchpad uses a fair auction, price discovery approach. The offering token and $USDC will form an AMM pair and all participating users deposit into the $USDC pool, and the price of offering token for all participating users is determined by the ratio of the pair at the end of the auction. Since the number of tokens on offer is fixed, the price of the tokens on offer gradually increases as the amount of $USDC deposited by users increases. Currently, Camelot Launchpad only accepts $USDC, and during the auction process, users can only deposit into the liquidity pool without withdrawing it.
What Is TokenInsight’s Rating for Camelot?
TokenInsight has rated Camelot’s current performance with a B and a positive outlook. It ranks medium on the list of DEXs. Similar projects with a B rating include Bonfida, ApolloX, and others.
The breakdown of the rating results is scored as follows.
- Underlying Technology & Security 46.5%
- Roadmap & Progress 59.67%
- Token Economics 52.47%
- Token Performance 50.67%
- Ecosystem Development 49.95%
- Team, Partners & Investors 52%
Underlying Technology & Security (46.5%)
Camelot does not have an official GitHub. The code relevant to the project is not publicly available.
As of February 2023, Camelot has publicly disclosed 2 code audit reports in its docs. Both reports were completed by Paladin, most recently on November 14, 2022. The audits included the smart contract codes for $GRAIL and xGRAIL, as well as code related to major infrastructures such as YieldBooster and NitroPool. Based on the results of the report, most of the security issues identified in the audits have been fixed by Camelot.
As of February 2023, Camelot has not experienced any security crisis events.
Source: Camelot Audit Reports by Paladin
Token Economics (52.47%)
Camelot has two assets: the native token $GRAIL and the governance token xGRAIL.
Native Token $GRAIL
$GRAIL is the native token of Camelot, with a maximum supply of 100,000. $GRAIL has no substantial use in the Camelot ecosystem, and there would be no return by holding $GRAIL alone.
According to Camelot’s disclosed token distribution plan, 15% of the $GRAIL’s total supply will be distributed for public sale. Of the remaining part, 22.5% will be allocated to the liquidity mining plan over the next 3 years, 15% to provide liquidity, and 32% to core contributors, partners, and advisors. The portion of $GRAIL allocated to team/partners/advisors will be fully unlocked over 3 years. The detailed distribution and vesting plan are as below.
$GRAIL Distribution Plan, Source: Camelot’s details page on TokenInsight
Governance Token xGRAIL
xGRAIL is the governance token of Camelot, which can be obtained through converting $GRAIL. The conversion ratio is 1:1. xGRAIL is non-transferable. The xGRAIL holders can receive benefits including dividend, exclusive access or discount on launchpad events, etc. Meanwhile, the number of xGRAILs held by users represents voting rights and can be used to vote on governance proposals.
Camelot Token Economic Model, Source: Camelot Doc
$GRAIL can be converted into xGRAIL at any time, but it takes certain times to redeem back. When redeeming, holders can choose either a 15-day or a 6-month vesting duration. The $GRAIL will be daily vested until they are fully vested. Holders who choose the 6-month vesting duration will receive 100% of the $GRAIL, while those who choose the 15-day option will only receive 50%. The remaining 50% will be burned by Camelot.
Token Performance (51.4%)
December 7, 2022, $GRAIL officially launched on Camelot with an initial liquidity of nearly $4 million. As of February 16, 2023, in addition to Camelot DEX, $GRAIL is also live on multiple exchanges including MEXC Global, BingX, Uniswap (Arbitrum One), and Bitget. According to TokenInsight, Camelot DEX is currently the top exchange in terms of $GRAIL’s trading volume, accounting for 80% of the total volume.
Due to the positive impact of recent developments in the Arbitrum ecosystem, the volume and price of $GRAIL have risen rapidly in one month since its launch. The price of $GRAIL has risen from the initial $200 to around $3,400, almost 15 times higher than 30 days ago. According to the latest data, on February 16, $GRAIL’s price dropped back to around $3,000, about 12% down from the ATH price.
In terms of trading volume, on February 15, $GRAIL’s 24h spot volume reached a peak, of approximately $15.6 million. Compared to 30 days ago, it increased by nearly 300 times.
Source: Camelot’s details page on TokenInsight
Ecosystem Development (49.95%)
Camelot’s TVL has also exploded due to the rapid growth of the Arbitrum ecosystem. According to DeFiLlama, Camelot’s TVL has grown rapidly since the end of January, going from $18M to an ATH of $63M (2023–02–16) in less than 30 days. For a new project that has been live for less than 3 months, Camelot has performed relatively well. It is currently ranked 31st among all DEXs.
In terms of trading data, Camelot’s daily trading volume jumped from around $100,000 in early 2023 to a peak of $22 million, with a nearly 200-times increase. Liquidity has also grown from $17 million to nearly $65 million, with a nearly fourfold increase.
Source: Camelot Analytics
The Upcoming Projects
Nitro Cartel (Feb. 17)
Nitro Cartel will launch the public sale of its governance token $TROVE on Camelot’s Launchpad on February 17, 2023. Nitro Cartel is a yield-bearing index and strategy vault protocol natively built on the Arbitrum network, designed to generate yield for users. Its first index, ALP, is a basket of selected blue-chip tokens such as $GMX, $MAGIC, and $GRAIL.
The public sale will include 20% of the total supply of $TROVE, with a starting price of $0.0025 per $TROVE and a fully diluted valuation of $12.5 million. The sale will be conducted using a fair launch, price discovery model.
Factor DAO (Feb. 20)
Factor DAO will launch the public sale of its native token $FCTR on Camelot’s Launchpad on February 20, 2023. Factor DAO is an on-chain asset management platform that helps users aggregate multiple DeFi assets and increase revenue through a variety of instruments and strategies. Holders of $FCTR can receive $veFCTR through $FCTR staking while receiving 50% of the platform’s revenue.
The public sale will include 10% of the total supply of $FCTR, conducted using a fair launch, price discovery model with a starting price of $0.1 per $FCTR.
PerpyFinance (Mar. 16)
PerpyFinance will launch the public sale of its native token $PRY on Camelot’s Launchpad on March 16, 2023. Perpy is a GMX-based perpetual asset management protocol with social properties in the Arbitrum ecosystem. Users can create their own portfolios directly on Perpy or copy other traders’ portfolios via smart contracts to earn revenue. The copied trader will receive a performance fee as a reward. In addition, Perpy offers built-in social features for portfolio sharing or discussions. Detailed information about public sales has not been disclosed yet.
As the core DEX of the Arbitrum ecosystem, Camelot’s function is not limited to providing swapping-related DeFi products. The Launchpad of Camelot can help “incubate” different kinds of new projects within the Arbitrum ecosystem and provides them with liquidity through its internal infrastructures. So technically, the overall development of the Arbitrum ecosystem is closely tied to Camelot. The liquidity generated by these new projects’ tokens will be pooled to increase Camelot’s overall liquidity and accelerate the growth of its TVL and trading volume, thus fulfilling the overall growth of the Arbitrum network.
Overall, Camelot as a DEX has relatively little innovation in its DeFi-related product. But its particular role within the Arbitrum network has allowed Camelot to grow rapidly and become one of the hottest projects in recent times. Moreover, the token economics of Camelot is relatively well designed. Through the participation of xGRAIL, Camelot incentivizes users to hold $GRAIL for the long term and has set up a number of token deflationary mechanisms to incentivize the growth in the long-term value of $GRAIL.
Based on the above information, TokenInsight has assigned Camelot a B rating with a positive outlook.
Read the original article at: https://tokeninsight.com/en/research/analysts-pick/what-is-camelot-innovative-dex-with-customizable-liquidity-launchpad-on-arbitrum-ratings-analysis
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