Camelot

About

Camelot is a decentralized exchange and Orbital Liquidity Network providing spot liquidity infrastructure for the Arbitrum ecosystem. It serves as the largest native DEX on Arbitrum with multiple AMM versions (V2, V3, V4) and connects multiple Orbit chains to create a cohesive network. The platform offers trading, liquidity provision, and supports builders and protocols launching in the Arbitrum ecosystem.

Where Does Yield Come From?

Camelot generates yield by sharing the trading fees earned across its different pool versions.

For V2 pools:

60% of fees go to liquidity providers (people who deposit tokens into the pool).
22.5% are paid to xGRAIL holders (users who have staked the GRAIL token) as real yield.
12.5% are used to buy back GRAIL tokens from the market and burn them.
5% cover the platform's operating costs.

For V3 pools:

85% of fees go to liquidity providers.
7% go to xGRAIL stakers.
3.5% are used for GRAIL buyback and burn.
3% cover operating expenses.
1.5% are paid to Algebra (the company that licenses the V3 technology).

For V3 vaults that use Gamma's service: Camelot receives about 8% of the 25% performance fee that Gamma charges. This 8% is split as:

5% to xGRAIL stakers.
3% to operating expenses.

Permissionless reward campaigns: Other projects can create their own reward programs on Camelot to attract liquidity. When they do, Camelot charges a 1% infrastructure fee on the rewards they distribute.

Who earns yield?

Liquidity providers earn from trading fees and from any extra campaign rewards.
xGRAIL token holders earn a share of the protocol's real fees (the allocations described above).

Persons

Myrddin
Team Member
Percival
Co-founder & Solidity lead
SirIronBoots
Team Member

Audits

Audit / Date	Findings	Verdict
Paladin30-10-2022	Critical0 High5 Medium7 Low19 Info39	Paladin's comprehensive audit identified multiple critical design flaws that were all resolved before deployment, resulting in a secure implementation with extensive fixes across all severity levels. The protocol demonstrates robust security posture with all high-risk vulnerabilities addressed.
Paladin14-11-2022	Critical0 High1 Medium2 Low8 Info8	The audit found no critical vulnerabilities, with the single high-severity issue and most other findings resolved prior to deployment, indicating a relatively secure implementation after remediation.
BailSec01-08-2025	Critical0 High7 Medium6 Low10 Info9	The audit uncovered several high-severity logic flaws in the router's path calculation and adapter integration, but most critical issues were resolved through multiple remediation rounds, leaving residual medium and low risks primarily around fee mechanics and gas optimization.
Hacken OU22-11-2021 - 13-12-2021	Critical0 High0 Medium1 Low2 Info0	The audit found only medium and low severity issues, all of which were addressed, resulting in a well-secured assessment of Algebra Finance's smart contracts.
ABDK Consulting29-07-2022	Critical3 High7 Medium0 Low0 Info0	The audit identified serious security issues including reentrancy and mock code, but all critical vulnerabilities were fixed before deployment. The extensive review of 30 files provides reasonable assurance that major risks were addressed, though the codebase shows numerous code quality and documentation improvements remain.
Hexens04-08-2022	Critical0 High0 Medium0 Low0 Info0	The audit identified several technical issues including high-severity fee calculation problems, though the garbled PDF conversion obscures the full scope and resolution status of findings.
Paladin Blockchain Security05-04-2023	Critical0 High0 Medium0 Low0 Info0	The audit found no security issues in the directional fee update, indicating the changes do not degrade the security posture of Algebra Protocol's V2 implementation for Camelot.
Paladin Blockchain Security14-06-2025	Critical0 High0 Medium0 Low3 Info1	The audit found no high or critical severity issues in the tick spacing upgrade, with all identified low and informational issues resolved, indicating a comprehensive security review with acceptable risk profile.
MixBytes02-08-2023 - 22-08-2023	Critical0 High1 Medium4 Low9 Info0	The audit identified one high-risk front-running vulnerability alongside four medium and nine low-severity issues, all of which were either fixed or acknowledged by the client. Overall code quality is high with sufficient test coverage and comprehensive documentation.
Bailsec—	Critical0 High2 Medium0 Low4 Info1	The audit identified and resolved two High-risk vulnerabilities in the plugin fee implementation, along with several Low-severity issues, leaving the core update with acknowledged governance and informational concerns but no unresolved critical flaws.

Backers

Camelot was entirely bootstrapped by the Arbitrum community with no pre-sale or venture capital investment. The project raised funds through a public sale that ran from November 29 to December 5, 2022, offering 15% of the GRAIL token supply (15,000 tokens out of 100,000 total). The public sale raised $3,796,460.86 at a GRAIL price of $254.21. Token allocation includes 10% designated for partnerships (vesting over 2.5 years with 6-month cliff) to ensure long-term alignment with protocols in the Arbitrum ecosystem, with most partners serving as initial launch partners featured in Genesis Pools. The project emphasizes community-driven development and transparent funding.

Legal

Status and notes

Camelot is presented as a community-bootstrapped decentralized protocol operating on Arbitrum. The official documentation describes team multisig governance with 2/3 threshold for core team operations (Myrddin, Percival, SirIronBoots) and 4/6 threshold for ecosystem multisig including community members. No legal entity, company registration, or incorporation details are disclosed in official documentation or contact information, which only provides social media channels (Discord, Telegram, Twitter, Medium).