Camelot is an Automated Market Maker (AMM) now connected to Matcha, giving you even more options when trading crypto on Arbitrum. Matcha aggregates over 130 liquidity sources to find the optimal execution route for your swaps across the crypto ecosystem. 

Pooling together the deepest, most competitive liquidity in DeFi opens up more routes for value to flow and enables the best prices for your token swaps, decentralized limit orders and cross-chain trades. 

What is Camelot?

Camelot is the largest DEX native to Arbitrum, and among the top-5 DEXs operating on Arbitrum in terms of TVL. At the time of writing, it is among the top DEXs by volume on Arbitrum, and has the second highest Arbitrum volume on 0x Protocol over the past 30 days.

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The Camelot website states that it is driven by the community and is focused on supporting new protocols being built on the Arbitrum Layer-2 (L2) stack by providing access to the relevant tools they need to launch, as well as to help them kickstart liquidity and exist sustainably.

What tech stack is Camelot DEX built with?

Previously known as Excalibur exchange, three versions of the Camelot protocol AMM have been launched. The first was deployed in December 2022, along with a token presale which raised almost $3.8M. 

Camelot’s V2 AMM launched in April 2023 and was based on the Uniswap V2 constant formula X * Y = K for pooling liquidity. 

Camelot V3 AMM is based on Algebra V1.9, which works similarly to Uniswap V4 and gives more flexibility to liquidity providers who want to provide concentrated liquidity within a set price range. One enhancement this is meant to provide over Uniswap is dynamic fee adjustments for each liquidity pool based on volatility.

Fundraising on Camelot Launchpad

So far, Camelot has helped launch 9 projects on Arbitrum, raising almost $20M in USD stablecoins and a further 9000 WETH, most of which was part of the Arbitrove (TROVE) fundraising. Note that the stablecoins figure does not include Camelot’s $3.8M fundraising round for its own token, GRAIL.

What is Matcha?

Matcha is a DEX aggregator built by 0x that lets you trade over 5 million tokens across 9 blockchains. It offers efficient token swaps and limit orders by pooling liquidity from 100+ sources. In December 2023, Matcha launched cross chain swaps for fast, direct bridging of one token for another across 7 networks including Arbitrum.

Swap tokens on Arbitrum and 8 other networks with Matcha.

Matcha has facilitated $62B in 3.5M+ trades since launching in 2020. 0x, was founded in 2017 by Will Warren and Amir Bandeali, receiving $109M in investment to date. The 0x team has contributed to key DeFi technologies like WETH, the ERC721 NFT standard and more.

Try Camelot on Matcha right now! Just visit Matcha DEX aggregator to start trading on Arbitrum and Matcha will find you the best price across all aggregated liquidity, including Camelot! 

How Camelot works

Camelot is an AMM that connects users with their desired trade by pooling tokens from liquidity providers and using those token liquidity pools to settle exchanges. Liquidity providers are users who contribute their tokens to liquidity pools, in order to receive a share of trading fees.

Trade on Arbitrum now!

Providing liquidity on Camelot pools

Users that deposit a token pair into a pool receive LP tokens specific to the pool. Providers who add liquidity to an Ether and USDC pool will be given ETH/USDC LP tokens, which entitle them to a share of every transaction fee on that pair, equivalent to their share of the pool’s total liquidity.  

LP tokens can also be wrapped in order to gain staking position tokens (spNFTs) which are equivalent to traditional yield farming tokens found on other platforms. These tokens accrue additional rewards with a default ratio of 80% xGRAIL to 20% GRAIL, though this may vary across farms.

As Camelot follows the latest Uniswap model, liquidity providers can choose where to allocate their capital, so it is concentrated to a certain price range. This allows for more efficient liquidity management which can be customized to the token pair (e.g. liquidity for a stable asset can be allocated to a narrower price range than a volatile asset).

GRAIL and xGRAIL tokens

GRAIL is Camelot’s native token while xGRAIL is a non-transferable token used to stake to the various plugin contracts available on Camelot. xGRAIL and GRAIL are interchangeable but xGRAIL can only be converted to GRAIL after a minimum vesting period of 15 days. The conversion rate increases over time from a rate of 2 xGRAIL per 1 GRAIL after 15 days, to an equal rate of 1 xGRAIL for 1 GRAIL at 6 months. 

Growing liquidity on Matcha

Camelot joins over 130 liquidity sources already aggregated by Matcha! With the deepest liquidity, Matcha finds you the best prices any time you trade. Now you have 11 sources of liquidity on Arbitrum, so you’ll always find the optimal route - fast! 

Customize Liquidity Sources using the ⚙️ Trade settings menu.

Keep an eye out for more liquidity source announcements as we continue to expand our industry-leading liquidity through the 0x Swap API. Start trading on Matcha today!