Will there be any new emerging projects in the DEX track in 2024? Platforms that cleverly utilize stablecoin strategies may be worth paying attention to

Recently, the decentralized exchange Camelot in the Arbitrum ecosystem announced on platform X that it has received ARB grant support to promote the adoption of native USDC. This funding aims to accelerate the use of native USDC within the Camelot ecosystem, particularly for key liquidity pools that include USDC.e. To this end, Camelot has launched a reward program for manual v3 liquidity providers, covering trading pairs such as ETH/USDC, USDT/USDC, stEUR/USDC, and ARB/USDC.
With the launch of native USDC on Arbitrum, the Camelot ecosystem is gradually transitioning from the bridged version of USDC.e to the native version. This ARB grant not only complements Camelot's existing reward program but also provides users with additional incentives to migrate to and use native USDC.
This article will systematically outline the status and development history of the Camelot project.

Camelot, a DEX platform based on Arbitrum, is committed to providing a range of ecological support to Arbitrum

As an efficient decentralized exchange (DEX), Camelot is dedicated to supporting the Arbitrum ecosystem by building flexible and sustainable liquidity solutions to provide the necessary impetus for new protocols within the ecosystem. Its goal is to achieve consistency between incentives and builders, users, and protocols through innovative emission strategies and sustainable token economics, collectively pursuing sustainable revenue models.

One of Camelot's main objectives is to become the native DEX of the Arbitrum ecosystem, ensuring that protocols can have high flexibility and control over their liquidity by providing a wide range of innovative features. This innovation is not limited to liquidity provision mechanisms but also includes comprehensive support for emerging protocols, ensuring they can successfully launch, attract liquidity, and continue to grow on Arbitrum.
Camelot is not just a trading platform; it also offers a complete set of tools and methods specifically designed to support new protocols that wish to land and grow within the Arbitrum ecosystem. From providing launch support to guiding liquidity and maintaining growth, Camelot is committed to being an accelerator for the success of new protocols, injecting vitality into the entire ecosystem through its flexible and sustainable liquidity solutions.
Through these efforts, Camelot aims not only to provide the necessary support and tools for projects within the Arbitrum ecosystem but also to drive the entire ecosystem towards a more sustainable and efficient direction through its innovative emission strategies and token economics. This series of goals and measures demonstrates its determination and capability as a driving force in the Arbitrum ecosystem.

Addressing the pain points of limited liquidity in the DeFi industry, Camelot has completed a full suite of mechanism model innovations

Camelot's automated market maker (AMM) mechanism is a crucial component of its protocol, designed with several key principles in mind: high flexibility and customization, optimized user trading efficiency, and adaptability to the needs of protocol development. Based on a dual liquidity model, Camelot can provide optimized trading slippage for highly volatile non-correlated assets and more stable correlated assets by dynamically directing swap fees—customizing fees for each trading pair based on market conditions and protocol needs, and even setting different rates based on buy and sell directions—showcasing its unique flexibility.

Camelot introduces a highly innovative liquidity approach based on non-fungible staking positions (spNFTs), providing a new layer of composability for AMM liquidity. This approach not only addresses issues present in traditional DeFi incentive models, such as balancing the earnings of liquidity providers with holder dilution, but also achieves modular and permissionless architecture development by providing sufficient returns to each LP based on their long-term commitment. As non-fungible staking positions, spNFTs not only have yield attributes but also locking functions, offering users the possibility to create advanced custom strategies while increasing capital efficiency.
Based on spNFTs, Camelot developed Nitro Pools, a fixed-term pool that serves as an additional reward layer for staking positions. Nitro Pools leverage the potential of spNFTs to enhance user capital efficiency and the efficiency of protocol incentive distribution. These pools allow specific packaged LPs or single assets to be deposited, providing users with a simple process to stake spNFTs and earn rewards. The design of Nitro Pools allows anyone to deploy freely, completely permissionless, enabling the protocol to directly incentivize specific types of liquidity without any intermediaries.
Camelot employs a dual-token system, with GRAIL as the native issuance token and xGRAIL as the non-transferable governance token. xGRAIL not only serves as a governance token but can also be allocated to special contracts (plugins) in exchange for various benefits, increasing composability and the ability to integrate community or partner plugins. This system provides users with opportunities to generate actual yields through native plugins such as dividend plugins and Yield Boosters, while also offering GRAIL and xGRAIL holders a deflationary mechanism to avoid dilution.
Through these innovative mechanisms and liquidity strategies, Camelot not only enhances the efficiency and flexibility of its AMM but also creates a fairer and more sustainable ecosystem between users and protocols. The implementation of these strategies demonstrates Camelot's leading position in driving DeFi innovation and improving capital efficiency.

From Nitro Cartel to Abracadabra, multiple partners join the collaborative ecosystem of Camelot DEX

In 2022, Camelot DEX launched on Arbitrum, marking the arrival of one of its final milestones for public testing. During this phase, users were able to experience the redesigned AMM, the NFT implementation for LPs, Nitro Pools, xGRAIL plugins, and more. In October, Camelot DEX released the open beta version V2, introducing new UI features and backend improvements aimed at collecting community feedback through public testing to optimize user interface/user experience and gain deeper insights into user interactions with specific features.

In November of the same year, Camelot announced the addition of several partners, including Nitro Cartel, Buffer, Jones DAO, Umami, GMX, GMD, and Abracadabra. The addition of these partners not only provided Camelot with deep and adaptable liquidity but also brought further innovation and growth to Arbitrum. Each partner is committed to providing liquidity for specific tokens on Camelot and has gained ownership stakes in the protocol, laying the foundation for long-term relationships that collectively drive the development of the Arbitrum ecosystem:

1. Nitro Cartel focuses on improving chain-level governance structures, guiding total value locked (TVL), allocating capital, and utilizing novel governance mechanisms to promote ecosystem development.
2. Buffer Finance, as a non-custodial options trading platform, ensures that the $BFR token has deep local liquidity on Camelot through this collaboration.
3. Jones DAO, as a yield, strategy, and liquidity protocol, releases DeFi's liquidity and capital efficiency through one-click access to institutional-grade strategies.
4. Umami provides liquidity and utilizes Camelot's unique AMM to offer a dynamic fee stable swap pool for cmUMAMI/UMAMI LPs.
5. GMX, as an important protocol in the DeFi space, continues to influence the entire field through its unique protocol design and "real yield."
6. GMD, as a yield optimization and aggregation platform, employs delta-neutral strategies to bring new financial primitives to Arbitrum.
7. Abracadabra uses interest-bearing tokens as collateral to borrow the dollar-pegged stablecoin MIM and achieves fee sharing and governance through SPELL tokens.
   These partnerships not only deepen Camelot's collaboration with other projects within the Arbitrum ecosystem but also provide Camelot's users with richer functionalities and deeper liquidity support, collectively promoting the prosperous development of the ecosystem.