UPDATE as of 6 November:
New Multi-sig to receive STIP funding: 0xEf9162fE27d319723feF7183348c87304a134c4B
As Arbitrum’s largest native DEX, Camelot provides custom liquidity infrastructure tooling and fosters a collaborative environment for innovation that incentivizes teams to build specifically on Arbitrum.
Camelot offers one of the broadest range of liquidity pools on Arbitrum and is a natural hub for both users and builders. With over 48 partner pools, Camelot has introduced numerous protocols to the ecosystem and has close relationships with the largest builders such as GMX, Pendle, Radiant, Dopex, Plutus and more. Camelot moves beyond the traditional role of a DEX to also provide extensive support and advisory for liquidity structuring, emissions management and more.
Camelot provides a full suite of liquidity products from a custom-built incentive layer to integrated concentrated liquidity strategies, allowing Arbitrum builders to achieve a bespoke balance of efficiency and practicality. Camelot can cater towards liquidity that requires maximum efficiency, whilst also providing support for illiquid long-tail assets. In turn, this leads to the most sustainable and economical liquidity across both protocol tokens and core assets, as displayed by the diverse fee generation and TVL graphs detailed below.
Team Members and Qualifications:
- 0xMyrddin, cofounder, dev
- Percival, cofounder, dev
- IronBoots, cofounder, BD & growth
- Vivi, marketing and community
- 0xCrema, quant advisor
- Danny, BD
- Dipplo, community
- Cryptonix, community
- Several external contractors for development and security work
TG: @iron_boots, @0xmyrddin
Twitter: @sirbootsofiron, @0xmyrddin
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: YES
(*minimum of 1.87m spent, up to 3.09m based on methodology and KPIs detailed below)
Camelot’s existing liquidity incentives to be maintained or increased, including various external rewards provided by partners
Camelot will allocate up to 3.09m ARB tokens as liquidity incentives over 3 months in the following categories, with the majority of the incentives focusing on partner pools and the broader adoption of $ARB as a base liquidity asset. Camelot will receive 512k per epoch and intends to begin the initial distribution with 400k ARB. Depending on the performance the following epochs can be increased or decreased by a maximum of 10%, thereby creating a min and max range of 1.87m to 3.09m ARB in total. This is shown below in the relevant table. Any ARB that has not been used will be returned at the end of the programme.
The distribution will leverage a variety of methods, including highly efficient concentrated liquidity strategies, Nitro pools, and other custom-built features as part of Camelot’s battle-tested infrastructure. Further justification and details for all incentive allocations are included throughout the rest of this application.
|Total Incentives||Avg incentives per epoch (bi-weekly)||% of total|
|Reserved for new partners||308,624||51,437||10%|
Camelot supports over 40 partners, and a breakdown of each pool and its initial distribution is included in the spreadsheet below. Camelot is committed to a sustainable & methodical approach and will therefore be adjusting emissions each epoch basis the relevant KPIs and metrics, which includes fees generated, volume, TVL, incentives per pool, and more. Most importantly, Camelot’s ability to distribute to a broad variety of pools is only possible through its continued expansion and scaling over the past year, and is not something that can be easily replicated with simple formulas.
As part of Camelot’s commitment to sustainability, the total incentives distributed for each epoch will be based on the performance of the KPIs, with a maximum adjustment of +/- 10%. This ensures that incentives are not being used without a clear justification for their effectiveness, and is reflected in the above table. In addition, the reserve portion will be specifically used to onboard new protocols or partners that are not included in the initial scope.
Funding Address: 0x2301273b4515ae8EC752B0041E7F4142408BEFBC
Funding Address Characteristics: 2/3 multisig (IronBoots, Percival, 0xMyrddin)
Contract Address: The entirety of the ARB allocation will happen through Camelot’s Nitro pools solution (https://docs.camelot.exchange/protocol/nitro-pools) and Merkl (https://merkl.angle.money), depending on the profile and needs of each specific pair.
No contract address can’t be shared before the distribution is actually set up, but Camelot will permanently keep a list all of them up to date during the entire duration of the campaign.
Camelot was conceived to help deliver Arbitrum’s goal of scaling and revolutionizing the future of Ethereum. Through its commitment to supporting native builders, Camelot strives to build the foundation of sustainable liquidity and collaboration that will allow Arbitrum and its diverse ecosystem to thrive.
Camelot has a proven track record of bringing in new builders to the ecosystem (Pendle, Vela, Thales, DMT, Aurory, Lyra, and many more) whilst also forming deep relationships with core native protocols such as GMX, Jones, Radiant, Plutus, Dopex, and more. Camelot is uniquely positioned to work closely with these partners to support the broader adoption of ARB as a base asset. The majority of new Arbitrum projects list their initial liquidity on Camelot, which provides the best opportunity to work with partners to seed their pools with ARB from launch.
Most importantly, Camelot has developed a comprehensive suite of liquidity products to offer protocols a wide range of tailored options. Whilst volume and TVL numbers can often vary depending on the liquidity profile of a token and market conditions, fees generated can be used as a more consistent reference for the performance of a pool. In this case, Camelot’s flexibility allows for significantly higher fee generation. Consistent fees generated is the primary source of real yield for users, and therefore provides a long-term solution that isn’t entirely reliant on incentives. Concentrated liquidity pools can be incentivized efficiently through Merkl or automated managers, while less liquid and more volatile partner tokens can achieve efficient fee generation through standard XYK pools and our Nitro pool infrastructure. We believe that there is no ‘one size fits all’ approach, and the Camelot protocol has been built to reflect that.
The objectives are clear:
Onboard new protocols to the Arbitrum ecosystem by offering bespoke liquidity support and incentives for new protocols
- As part of the support for new token listings, Camelot is uniquely positioned to encourage the use of $ARB in protocol-owned-liquidity, making it the most attractive option for new protocols
Increase adoption of the $ARB token by incentivising protocols to adopt $ARB as a paired asset whilst also incentivising highly efficient $ARB base liquidity
Deepen spot liquidity for Arbitrum’s key protocols by incentivising ecosystem partner pools, offering bespoke support catered to each projects requirements
Leverage a data driven, dynamic approach to increase the sustainability of incentives and achieve long-term sticky liquidity across a broad range of pools
Increase overall protocol liquidity depth on Arbitrum by incentivizing and supporting protocols to leverage Camelot’s concentrated-liquidity solutions
Camelot will leverage its natively integrated automated liquidity managers to incentivize concentrated liquidity efficiently and in a user-friendly manner. Concentrated liquidity traditionally requires active and manual management, so this solution allows us to provide a passive option that caters to a wider range of user needs.
- Camelot will use its Merkl integration to distribute incentives directly to concentrated liquidity providers. Through Merkle, the most efficient LPs are rewarded based on their generated fees, making it one of the most effective methods of incentive distribution.
- Camelot’s custom-built incentive layer (spNFTs and Nitro pools) allows for highly focused and permissionless incentivisation, allowing partners to provide additional rewards
Stimulate broader collaboration and broader development growth in the ecosystem
- TVL growth
- Fees growth
- Volume growth
- Adoption of ARB as a base asset
- New partners and protocols supported on Arbitrum (both multichain and native protocols)
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
Camelot strives to support the native ecosystem through collaborative relationships and has a proven track record of allocating incentives to facilitate sustainable growth and long-term liquidity for ecosystem protocols.
This proposal will focus on bringing new protocols into the Arbitrum ecosystem, promoting the adoption of $ARB as a base asset, and enhancing spot liquidity for Arbitrum native builders. This approach aligns with Arbitrum’s core values and aims to facilitate substantial and long-lasting growth.
Camelot has achieved a total trading volume of >$3,250,000,000 and has maintained a TVL of over $50m for several months. Most importantly, Camelot’s ecosystem-focused approach has yielded impressive results which can be seen by the data below, which clearly shows how Camelot generates sizeable fees through its dynamic and sustainable approach to liquidity. Camelot’s strong focus on partnerships and bringing in new protocols has introduced pools such as $DMT, $WINR, $AURY, $PENDLE, and many more to Arbitrum. Additionally, concentrated liquidity integrations such as Merkl have allowed for highly efficient returns on blue-chip pools like ETH/USDC and ARB/USDC too.
Through this multi-faceted approach to liquidity, Camelot can continue to scale sustainable liquidity for Arbitrum, introduce new protocols to the ecosystem, achieve broader adoption for $ARB, and generate attractive but long-lasting fees for users too. These objectives, when combined, will bolster Arbitrum’s position as the leading L2 ecosystem for DeFi innovation.
To summarise, Camelot will foster growth and innovation on Arbitrum through liquidity incentives in several ways:
- 50% of the incentives will be allocated towards partner pools and will be distributed using Camelot’s sustainable methodology that has achieved significant results
- 20% of the incentives are allocated to $ARB, specifically to broaden its adoption as a base asset within partner token pools, increasing utility whilst incentivising growth
- 20% to core pairs to establish highly efficient and deep liquidity on the native ecosystem trading venue, spurring network effects from protocols that leverage Camelot’s core pools (such as ALMs, yield protocols, lending markets and more)
- With 10% reserved for new protocols, this grant will be used to attract new builders and protocols into the ecosystem, with Camelot acting as the natural entry-point for many teams. New projects will also receive our full marketing, community, and ecosystem support, in addition to any incentives.
- Camelot can support any token in a bespoke way - v3 pools can be incentivised with integrations such as Merkl and ALMs such as Gamma, achieving some of the most efficient AMM returns. V2 Pools are also still one of the most practical solutions for new teams and therefore partners can leverage our custom Nitro pool infrastructure.
- Camelot’s unique approach to concentrated liquidity will also allow for partner protocols to transition their tokens to more efficient rewards structures. Although v2 pools can be the most effective or practical option for long tail assets, we’re committed to supporting teams as they expand and deepen their overall liquidity on the chain.
Camelot is a top 3 native dapp by TVL and active users, and it has a proven track record of achieving sustainable growth, onboarding new protocols to the Arbitrum ecosystem, fostering collaboration, and distributing incentives in an effective way.
As shown in the table below, Camelot has a broad range of pools with varying liquidity profiles and requirements. Camelot can ensure that the requested $ARB incentives will be allocated in an objective and diverse way, in order to achieve deeper liquidity and efficient fee generation across numerous partner pools as well as blue-chip core pools.
As detailed in this application, Camelot has a multi-faceted strategy to achieve its objectives. To achieve these various objectives, different methods of distribution and incentivisation are required, and therefore the requested amount is justified by tackling the core points:
- Expanding Arbitrum by incentivising new partners and protocols
- Increasing the adoption of $ARB as a base asset for native protocols
- Furthering the liquidity of $ARB and other core pools with the most efficient concentrated liquidity rewards structure
- Deepening liquidity for native builders, stimulating economic growth for ecosystem protocols
The below data (and document under ‘execution strategy’ displays Camelot’s ability to achieve sustainable liquidity and fee generation, even in periods of weak market conditions. This data combined with the diverse distribution of incentives will allow Camelot to achieve broad and long-term growth for the Arbitrum ecosystem.
As mentioned throughout the application, Camelot will incentivise liquidity pools across several main categories, with pool-level granularity included in the below spreadsheets. This distribution is fully aligned with the detailed objectives and KPIs.
The spreadsheet attached above provides an initial outline for the first epoch distribution. It is important to note that this is based on current market conditions and therefore specific pool allocations can be slightly adjusted before a finalized distribution is confirmed. Examples of these adjustments would include distributing incentives to a v3 pool instead of v2, or adding pools from new partners. The total amount per category won’t change.
The distribution of incentives will be reported at the end of every epoch (two-week period), and will include a pool-level breakdown of the key metrics (TVL, fees, volume, amount of incentives received) to accurately and transparently assess performance. This report will therefore determine the following epoch’s incentive distribution, to most effectively achieve the KPIs and objectives.
Camelot will begin distributing the incentives as soon as the tokens are received in the multisig. This will commence the first epoch (two-week period), with the mentioned reports and data being shared on an ongoing basis in-line with the timing of the following epoch token distributions to Camelot.
The distribution of incentives will be executed as per the allocation breakdown document on an epoch basis, and will continue for the 3 month period of the framework (At the latest up until January 31st 2024).
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?: YES
Is the Protocol Native to Arbitrum?: YES
On what other networks is the protocol deployed?: NONE
What date did you deploy on Arbitrum?:
Beta - September 2022
Mainnet - November 2022
Camelot was initially launched as a complete product specifically to support Arbitrum builders and to provide the tools for more sustainable liquidity. Since then, Camelot has grown significantly and has been on a constant evolution of updating and adapting to user and protocol needs. Following the initial bootstrapping phase, Camelot integrated concentrated liquidity in a highly ecosystem-focused way, achieving some of the highest efficiency pools on Arbitrum and providing users with a more accessible way to manage v3 liquidity.
- Bootstrapping the initial product to become the largest native DEX
- Dual AMM with dynamic fees
- Custom-built incentive layer (spNFTs and Nitro pools)
- Novel tokenomics through xGRAIL’s unique design, achieving significantly higher sustainability
- Consistent improvements and upgrades to the UI/UX
- Partnering with over 40 ecosystem protocols, introducing various protocols to the ecosystem and forming close relationships with the largest native teams
- Introducing the Launchpad as a side-product, launching over 10 native tokens
- The launchpad acted as an entry-point into the Arbitrum ecosystem for many teams, and provided one of the only decentralized alternatives to raising funds publicly and in a community-focused way
- Extensive support and advice for tokenomics, liquidity, go-to-market and more
- Becoming one of the largest governance delegates
- Being the first protocol to propose an incentive grant to Arbitrum DAO (Accelerating Arbitrum), kickstarting the DAOs support of incentive grants
- Active and contributing to all of the liquidity incentive framework discussions
- Leveraging Algebra’s AMM to launch highly efficient concentrated liquidity pools
- Being the first protocol to natively integrate multiple liquidity managers, such as DeFi Edge and Gamma
- Integrating the Merkl solution for direct v3 incentives
- Achieving some of the most efficient v3 pools on Arbitrm
- An overhaul of the overall app to make concentrated liquidity more accessible for the average user
- Supporting partners to manage their liquidity more efficiently through concentrated liquidity tools
Audit History: https://docs.camelot.exchange/references/audits
Is your team prepared to create Dune Dashboards for your incentive program?:
Camelot will create and publish all the relevant data mentioned in the above application, including pool-by-pool metrics in order to clearly demonstrate progress and track the KPIs.
In short, Camelot will provide (or facilitate the creation) of Dune dashboards that cover all relevant data required.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?:
Yes - Camelot is committed to maintaining bi-weekly updates that cover the full scope of the proposal and all the relevant metrics and KPIs within it. Camelot has its own analytics and live subgraphs for all of the required AMM data. Several scripts have been prepared to assist the creation of comprehensive reports for every epoch.
As part of the incentive grant, Camelot is committed to providing data and updates as frequently as possible. Throughout the duration of the grant, Camelot will also engage with third-party providers to analyse the efficacy of the programme in order to continually assess the performance and take into account improvements.
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: YES