Camelot STIP Program Updates

[Camelot] Bi-Weekly Update [11/30/2023] - Epoch #1

Recap of the Previous Two Weeks (11/14 to 11/28)

Over the first epoch, Camelot has seen strong growth across all the key metrics. Most importantly, in addition to the increase in baseline metrics, Camelot has focused its STIP incentives to support protocols migrating to v3 liquidity, onboarding new pools, and a consistent BD effort to expand the ecosystem.

Whilst these objectives are harder to quantify, Camelot emphasises that its strategy combines efficiency with long-term sustainable growth for Arbitrum. By directly supporting builders, Camelot’s impact goes beyond just liquidity alone.

Alternative approaches could maximise short-term metrics, but as seen by the fees metrics, the current distribution of incentives aims to achieve long-term liquidity rather than just short-term growth alone.

Camelot’s ecosystem-focused approach is also demonstrated by over 55 individual pools being incentivised, 45 of which are for Arbitrum partner protocols. Therefore, the overall increase in performance is not just for bluechip pools, but broadly spread across builders and their communities.

ARB Received Last Disbursement: 441,429

ARB Utilized as Incentives in the Last Two Weeks: 385,000

Contracts incentivized over the last 2 weeks: https://docs.google.com/spreadsheets/d/1javjk3siZv5f3zJ4zMdrCudnH6mhbFeWP4HjAu10kwc/edit#gid=0

Contract address label Form completed for all addresses: Yes

ARB left over: 56,429

Plan for leftover ARB: Kept in reserve to be used on new protocols / pairs / emissions adjustments if needed, will be sent back at the end of the STIP if not.

Summary of incentives: CAMELOT - STIP - ARB allocations - Google Sheets

STATS

Average daily TVL: 107.8m
Edit (fix): had previously mistakenly written V3 TVL only

Average daily transactions: 17,483 (trades only)

Average daily volumes: 51.8m

Number of unique user addresses: 3,622 (DAU)

Link to Dashboard showing metrics:
https://dune.com/whale_hunter/camelot-dex-arbitrum-stip

*Note: while global metrics are fully accurate, some specific pairs’ metrics (TVL/volume/fees $) can be considerably undervalued due to Dune’s lack of support of some tokens. Accurate data for those specific pairs can be found on our analytics page:
https://info.camelot.exchange/

Metrics comparison (pre-stip vs epoch #1) for incentivized pairs only:

Plan For the Next Two Weeks (11/28 to 12/12)

As mentioned above, Camelot will continue the strategy executed within the first epoch to support native builders, onboard new protocols, and achieve long-term sustainable liquidity.

Several new protocols are included in the 2nd epoch, such as $MIM, $RDO, $FCTR, and $TST. Incentives for these new pools will help support the liquidity of ecosystem protocols, with the 2nd epoch distributing incentives to over 50 partner pools.

Metrics showed significant growth across the board in the first epoch due to strong momentum and a general market pickup. While we expect consistent growth going forward, we would also like to reiterate that the first epoch will naturally show some of the highest growth when the metrics are compared to pre-STIP conditions.

Amount of ARB to be distributed: 350,000 ARB

Contracts that will be incentivized: https://docs.google.com/spreadsheets/d/1javjk3siZv5f3zJ4zMdrCudnH6mhbFeWP4HjAu10kwc/edit#gid=0

Contract address label Form completed for all addresses: Yes

Mechanism for distribution incentives: Merkl and Camelot’s Nitro pools

Summary of incentives plan: CAMELOT - STIP - ARB allocations - Google Sheets

Summary of changes to the original plan: In regard to the current new deadline set to February 16th, we’ve accordingly decreased the allocations for epoch #2 from 400k to 350k ARB - despite the strong results obtained in epoch #1 - so we could extend our distribution to 7 epochs instead of 6. The +/- 10% adjustments between the next epochs will be maintained as stated in the originally proposal, based on those 350k ARB as a starting point.

3 Likes

[Camelot] Bi-Weekly Update [12/15/2023] - Epoch #2

Recap of the Previous Two Weeks (11/28 to 12/12)

During the first two epochs, Camelot experienced significant growth as the initial distribution of incentives spurred a jump in TVL whilst also being an important catalyst for overall risk-on sentiment for Arbitrum.

As mentioned previously, we naturally expected the growth rates to adjust lower in comparison to the first epochs, considering the growth there was relative to a pre-STIP environment. With this in mind, we’re still seeing consistent growth across key metrics, with a continued focus on onboarding and supporting new Arbitrum builders.

Most importantly, we are strategically incentivising pools that can in turn generate enough fees from trading to be sustainable even in a scenario without ARB rewards. This focus therefore allows us to increase the effectiveness of the overall grant, ensuring that its focus is on long-term growth.

Overall incentives distributions have been lowered to reflect the extension of STIP proposal passing, therefore meaning that Camelot (and other protocols) have a longer duration to use its incentives. This allows Camelot to again reinforce its adaptive approach, adjusting the incentives to optimise effectiveness.

Given the significant strength in previous epochs, we’re confident that overall levels of incentives can (and should be) adjusted lower to account for market dynamics.

ARB Received Last Disbursement: 441,429 ARB

ARB Utilized as Incentives in the Last Two Weeks: 350,000 ARB

Contracts incentivized over the last 2 weeks: Camelot - STIP - Incentivized Contracts - Google Sheets

Contract address label Form completed for all addresses: Yes

ARB left over: 91,429 ARB (acc. total of 147,858 ARB)

Plan for leftover ARB: Kept in reserve to be used on new protocols / pairs / emissions adjustments if needed, will be sent back at the end of the STIP if not.

Summary of incentives: CAMELOT - STIP - Final ARB grant allocations - Google Sheets

STATS

Average daily TVL: $113.8m

Average daily transactions: 19,881 (trades only)

Average daily volumes: $63.3m

Average daily fees: $121.3m

Number of unique user addresses: 4,432 (DAU)

Link to Dashboard showing metrics:
https://dune.com/whale_hunter/camelot-dex-arbitrum-stip

*Note: while global metrics are fully accurate, some specific pairs’ metrics (TVL/volume/fees $) can be considerably undervalued due to Dune’s lack of support of some tokens. Accurate data for those specific pairs can be found on our analytics page:
https://info.camelot.exchange/

Metrics comparison (epoch #1 vs epoch #2) for incentivized pairs only:

Plan For the Next Two Weeks (12/12 to 12/26)

In the 3rd epoch our focus remains the same: deepening liquidity for native builders, onboarding new protocols, and achieving highly sticky liquidity for Arbitrum. As seen by the fee generation for bluechip pools, the result of our strategy is clear - fee APRs and other metrics are outperforming all other DEXs on Arbitrum.

In addition to the 45 partners supported in the previous epoch, we’ve additionally now been able to onboard Vertex, Good Entry, Steakhut, Seedify, and more.

Being able to reward these protocol pairs is a significant factor in supporting the broader development ecosystem on Arb. Protocol communities will greatly benefit from deeper liquidity, thereby introducing further users and additionally incentivising protocols to build in the ecosystem.

For this epoch we continue to focus on our core objectives whilst targeting the most effective distribution of incentives.

Amount of ARB to be distributed: 300,000 ARB

Contracts that will be incentivized: Camelot - STIP - Incentivized Contracts - Google Sheets

Contract address label Form completed for all addresses: Yes

Mechanism for distribution incentives: Merkl and Camelot’s Nitro pools

Summary of incentives plan: CAMELOT - STIP - Final ARB grant allocations - Google Sheets

Summary of changes to the original plan: In regard to the current new deadline (TBC with Tally voting) set to March 29th, we’ve accordingly decreased the allocations for epoch #3 to 300k ARB so we could extend our distribution to 9 epochs. The +/- 10% adjustments between the next epochs will be maintained as stated in the original proposal, based on those 300k ARB as a starting point.

[Camelot] Bi-Weekly Update [01/13/2024] - Epoch #4

Recap of the Previous Two Weeks (12/26 to 01/09)

Camelot has continued to sustain strong growth in the previous epochs whilst, most importantly, focusing on an ecosystem-centric strategy. In addition to the underlying metrics, Camelot has used its incentives to support new native protocols and bring new multi-chain protocols to Arbitrum.

Camelot’s multi-pronged approach is aimed at creating sustainable fee generation from a wide variety of pools. For example, this can be seen through incentives only representing a minority share of the overall pool yields. Additionally, this is shown through the diversification of traded volume, which isn’t only concentrated on a handful of bluechip pools but spread across numerous protocol pairs.

One of the main points for epoch #4 and the new epoch #5 is that on January 4th, Gamma Strategies faced a security incident on several of its managed vaults. Gamma is a protocol that offers automated liquidity management vaults, used across the largest DEXs in DeFi. The incident affected several vaults across multiple DEXs, and deposits to all vaults were shortly closed to mitigate any further risks. With deposits closed, the existing vaults are now secure and continue to remain operational. Gamma has proceeded with a full recovery plan, and its next steps are to get comprehensive security reassurances through additional re-audits before opening the vaults for new deposits.

ARB Received Last Disbursement: 441,429 ARB

ARB Utilized as Incentives in the Last Two Weeks: 291,700 ARB

Contracts incentivized over the last 2 weeks: Camelot - STIP - Incentivized Contracts - Google Sheets

Contract address label Form completed for all addresses: Yes

ARB left over: 149,729 ARB (acc. total of 587,312 ARB)

Plan for leftover ARB: Kept in reserve to be used on new protocols / pairs / emissions adjustments if needed, will be sent back at the end of the STIP if not.

Summary of incentives: CAMELOT - STIP - Final ARB grant allocations - Google Sheets

STATS

Average daily TVL: $109.8m

Average daily transactions: 37,944 (trades only)

Average daily volumes: $158.2m

Average daily fees: $179k

Number of unique user addresses: 8,438 (DAU)

Link to Dashboard showing metrics:
https://dune.com/whale_hunter/camelot-dex-arbitrum-stip

*Note: while global metrics are fully accurate, some specific pairs’ metrics (TVL/volume/fees $) can be considerably undervalued due to Dune’s lack of support of some tokens. Accurate data for those specific pairs can be found on our analytics page:
https://info.camelot.exchange/

Metrics comparison (epoch #3 vs epoch #4) for incentivized pairs only:

Plan For the Next Two Weeks (01/09 to 01/23)

Camelot uses Gamma vaults for a large portion of its STIP incentives, and after considering all scenarios we have decided to keep rewards live for these vaults for the 5th epoch, making adjustments for specific pools when necessary. Whilst deposits are closed, the overwhelming majority of users have remained in the existing vaults, and given that the timeline for re-opening is estimated for 1-2 weeks, the safest and most practical solution is to be focused on supporting Gamma in its recovery and relaunch. We believe this approach continues to be the most effective allocation of rewards to achieve the most productive liquidity on Camelot.

More generally, the focus remains the same: support native builders’ liquidity, facilitate the onboarding of new protocols on the chain, with sustainable levels of incentives.

Amount of ARB to be distributed: 292,900 ARB

Contracts that will be incentivized: Camelot - STIP - Incentivized Contracts - Google Sheets

Contract address label Form completed for all addresses: Yes

Mechanism for distribution incentives: Merkl and Camelot’s Nitro pools

Summary of incentives plan: CAMELOT - STIP - Final ARB grant allocations - Google Sheets

[Camelot] Bi-Weekly Update [01/29/2024] - Epoch #5

Recap of the Previous Two Weeks (01/09 to 01/23)

During the 5th epoch, Camelot was focused on ensuring the smooth and safe re-opening of deposits for Gamma vaults. As mentioned in the previous epoch, deposits were paused due to a security incident on two stable vaults. Following further re-audits and security checks, Gamma opened vaults for user deposits, meaning they were back to full operational functionality. Camelot distributes a significant portion of its STIP incentives through automated vaults, as they are one of the most practical and effective solutions for balancing efficiency and long-term sticky liquidity from users. Camelot decided to keep rewards live during the previous epoch despite deposits being closed in order to preserve the existing deposits and ensure the smoothest recovery for vaults. Rewards continue to be distributed to the vaults for the 5th epoch and Camelot remains focused on increasing TVL, volume, and liquidity with a sustainable approach.

Overall volumes on Arbitrum have trended lower in the past weeks, but Camelot remains consistent in generating fees and healthy volume. The importance of generating the majority of the pool’s yield from trading fees is not to be understated - it is one of the largest driving forces for ensuring that liquidity and TVL remain sticky even in the absence of additional STIP rewards. The fact that $ARB rewards account for the minority share of APR yield on large pools is a deliberate strategy to balance effective bootstrapping with liquidity that will remain long-term.

ARB Received Last Disbursement: 441,429 ARB

ARB Utilized as Incentives in the Last Two Weeks: 292,900 ARB

Contracts incentivized over the last 2 weeks: Camelot - STIP - Incentivized Contracts - Google Sheets

Contract address label Form completed for all addresses: Yes

ARB left over: 148,529 ARB (acc. total of 735,841 ARB)

Plan for leftover ARB: Kept in reserve to be used on next epochs or for new protocols / pairs / emissions adjustments if needed, will be sent back at the end of the STIP if not.

Summary of incentives: CAMELOT - STIP - Final ARB grant allocations - Google Sheets

STATS

Average daily TVL: $115.6m

Average daily transactions: 27,106 (trades only)

Average daily volumes: $75.2m

Average daily fees: $112.8k

Number of unique user addresses: 6,334 (DAU)

Link to Dashboard showing metrics:
https://dune.com/whale_hunter/camelot-dex-arbitrum-stip

*Note: while global metrics are fully accurate, some specific pairs’ metrics (TVL/volume/fees $) can be considerably undervalued due to Dune’s lack of support of some tokens. Accurate data for those specific pairs can be found on our analytics page:
https://info.camelot.exchange/

Metrics comparison (epoch #4 vs epoch #5) for incentivized pairs only:

docs.google.com

Plan For the Next Two Weeks (01/23 to 02/06)

As mentioned above, the strategy for this epoch remains on scaling sustainable liquidity across a broad range of core, partner, and ARB pools. The reopening of Gamma vaults allows Camelot to remain on track with its objectives and will allow further new partner vaults to be created. Supporting several new partners has been in progress over the past weeks, and we expect these new pools to come to fruition for the next epoch, with the partners ranging from Gaming studios, DeFi protocols, and infrastructure providers. The wide distribution of Camelots STIP incentives across >50 pools further validates its approach as supporting and benefiting the entire ecosystem.

Amount of ARB to be distributed: 289,500 ARB

Contracts that will be incentivized: Camelot - STIP - Incentivized Contracts - Google Sheets

Contract address label Form completed for all addresses: Yes

Mechanism for distribution incentives: Merkl and Camelot’s Nitro pools

Summary of incentives plan: CAMELOT - STIP - Final ARB grant allocations - Google Sheets