Camelot

Arbitrum's DeFi scene has no shortage of DEXes, but Camelot has carved out a role that goes beyond basic token swapping. As the ecosystem's native exchange with deep ties to new project launches, innovative NFT-based LP positions, and an expanding presence across 15+ Arbitrum Orbit chains, Camelot is quietly building something different in 2026. We spent considerable time testing the platform from both a trader's and liquidity provider's perspective, and this review covers everything from swap fees to the unique Nitro Pool system that sets it apart.

What is Camelot?

Camelot is a decentralized exchange built natively on Arbitrum, the leading Ethereum Layer 2 rollup. Launched in late 2022, Camelot was designed from the start to serve the specific needs of the Arbitrum ecosystem rather than being a fork or multi-chain deployment of an existing protocol. This Arbitrum-first approach has given Camelot deep integrations with ecosystem projects and positioned it as the go-to venue for new Arbitrum token launches.

The protocol operates a dual AMM model that supports both volatile token pairs (using a standard constant-product formula) and stable pairs (using a curve optimized for assets that trade near parity). In 2023, Camelot launched its V2 upgrade powered by Algebra's V2 concentrated liquidity implementation, bringing features like dynamic volatility-based fees, limit order support, and customizable tick spacing. Most trading activity on the platform now runs through this concentrated liquidity engine.

What truly distinguishes Camelot from other DEXes is its ecosystem-first philosophy. The platform has partnered with over 75 Arbitrum projects to provide liquidity support and token launch infrastructure. It has become the default launchpad and initial liquidity venue for many new Arbitrum tokens, which drives organic trading volume and attracts liquidity providers seeking early exposure to new projects.

The GRAIL token is Camelot's governance and utility token with a notably small total supply of just 100,000 tokens (with roughly 85,000 in circulation). This scarce supply makes GRAIL one of the more volatile DeFi tokens by design. Users can stake GRAIL to receive xGRAIL, which unlocks governance voting, protocol dividend sharing from trading fees, launchpad allocation access, and boosted yields in Nitro Pools. GRAIL is regularly bought back and burned from the open market using protocol revenue, creating ongoing buying pressure.

In 2025 and 2026, Camelot has evolved from a single-chain DEX into the Orbital Liquidity Network, deploying on over 15 Arbitrum Orbit chains. Orbit chains are independent rollups that settle on Arbitrum, and Camelot has become the first and only protocol to deploy liquidity infrastructure across multiple Orbits. Revenue generated from the entire Orbital network flows back to GRAIL stakers, creating a flywheel effect. With $30 billion in cumulative volume traded and over 75 ecosystem partners, Camelot has cemented itself as Arbitrum's most important native DEX.

Features and Functionality

Trading Interface

The Camelot trading interface at camelot.exchange (also accessible at app.camelot.exchange) presents a clean, well-organized swap panel. Token selection is intuitive, with popular pairs prominently displayed and a search function for finding specific tokens. The interface shows real-time exchange rates, estimated gas costs, price impact, and the minimum output amount accounting for slippage.

We found the interface to be well-balanced between functionality and simplicity. It is not as feature-packed as Jupiter's all-in-one terminal, but it also does not overwhelm new users. The V2 concentrated liquidity pools display current tick positions and fee tier information clearly, which is helpful for LPs evaluating where to place their positions.

The styling uses a medieval theme consistent with the "Camelot" branding - dark backgrounds with gold accents and themed terminology like "Round Table" for governance. It is a matter of personal taste, but the aesthetic is distinctive and memorable compared to the generic look of many DeFi protocols.

Navigation is organized into clear sections: Trade, Liquidity, Nitro Pools, xGRAIL, Launchpad, and Analytics. Each section loads quickly on Arbitrum's fast block times, and we experienced no lag or failed transactions during normal network conditions.

Supported Markets

Camelot supports approximately 600 trading pairs, primarily composed of Arbitrum-native tokens, bridged blue-chip assets (ETH, USDC, USDT, WBTC, ARB), and tokens from projects that launched through Camelot's launchpad. The selection covers all major Arbitrum DeFi tokens along with a long tail of smaller-cap ecosystem tokens.

The protocol offers two pool types: volatile pools for standard token pairs and stable pools for stablecoin and pegged-asset pairs. With the V2 upgrade, concentrated liquidity is now the dominant pool type, featuring dynamic fees that automatically adjust based on market volatility. This means fees increase during periods of high volatility (protecting LPs from impermanent loss) and decrease during calm markets (attracting more trading volume).

Camelot is limited to Arbitrum and Arbitrum Nova chains, plus the 15+ Orbit chains it has deployed on. You will not find Ethereum mainnet, Solana, or other chain assets directly. However, since Arbitrum is a Layer 2 on Ethereum, bridging ETH and ERC-20 tokens to Arbitrum is relatively fast and inexpensive using the native Arbitrum bridge or third-party services.

Liquidity and Pool Depth

Camelot carries a TVL of approximately $80M and processes around $25M in daily volume. These numbers place it below larger multi-chain DEXes but firmly as the leading native exchange on Arbitrum. The cumulative volume of $30 billion demonstrates sustained trading activity over the protocol's lifetime.

In our testing, major pairs like ETH/USDC and ARB/ETH offered solid liquidity with minimal slippage on trades up to $25,000. Smaller ecosystem tokens had more variable liquidity, with some pairs showing noticeable price impact above $5,000. The concentrated liquidity pools generally offered tighter spreads than the legacy V1 pools that still exist for some pairs.

One advantage of Camelot's ecosystem partnerships is that newly launched tokens often have their initial and deepest liquidity on Camelot rather than on Uniswap or SushiSwap's Arbitrum deployments. If you are trading newer Arbitrum tokens, Camelot frequently offers the best execution.

Advanced Features

Nitro Pools: This is Camelot's most distinctive feature. Nitro Pools are customizable incentive pools that allow projects (or anyone) to reward specific types of liquidity provision. Unlike standard yield farms that reward all LPs equally, Nitro Pools can set requirements like minimum lock periods, minimum spNFT boost levels, or specific position sizes. This targeted approach attracts committed, long-term liquidity rather than mercenary capital that leaves the moment incentives end. In practice, Nitro Pools create a more sustainable liquidity model for ecosystem projects.

spNFTs (Staked Position NFTs): When you provide liquidity on Camelot, you receive an spNFT instead of standard fungible LP tokens. This NFT represents your specific position, including the amount deposited, the pool, and any lock duration. spNFTs can be boosted by locking them for longer periods, which increases yield multipliers. They can also be transferred or sold on NFT marketplaces, creating a secondary market for LP positions. We found this system genuinely innovative - it adds flexibility and composability that traditional LP tokens lack.

xGRAIL Staking: Staking GRAIL for xGRAIL unlocks multiple benefits: governance voting rights, a share of protocol dividends from trading fees, access to launchpad allocations for new token sales, and boosted yields in Nitro Pools. xGRAIL is non-transferable and requires a vesting period (up to 6 months) to convert back to liquid GRAIL, which aligns holder incentives with long-term protocol health.

Launchpad: Camelot serves as a primary launchpad for new Arbitrum projects. Teams partner with Camelot to conduct initial liquidity provisioning and token sales, giving xGRAIL holders early access. This launchpad function drives organic trading volume and creates a pipeline of new pools and Nitro Pool incentive campaigns.

Dynamic Fees: The V2 concentrated liquidity pools use Algebra's dynamic fee model, which adjusts fees based on real-time market volatility. During calm markets, fees may drop to attract trading volume. During volatile periods, fees increase to compensate LPs for the higher impermanent loss risk. This happens automatically without LP intervention.

Fees and Pricing

Fee Structure

Camelot's default swap fee is 0.30% per trade, split between liquidity providers (0.22%) and the protocol (0.08%). However, with the V2 dynamic fee model, actual fees fluctuate based on market conditions. During our testing, we observed effective fees ranging from approximately 0.20% during calm markets to 0.40% during volatile periods on concentrated liquidity pools.

The protocol fee portion (0.08%) is used for two purposes: distributing dividends to xGRAIL stakers and buying back GRAIL tokens from the open market for burning. This creates a direct link between trading volume and value accrual for GRAIL holders.

Gas costs on Arbitrum are significantly lower than Ethereum mainnet but higher than Solana or Cosmos chains. We observed gas costs of $0.10 to $0.50 per swap during our testing, depending on network congestion and the complexity of the transaction. Adding or removing liquidity from concentrated positions costs slightly more in gas due to the additional computational complexity.

How Camelot Fees Compare

Camelot's fees are competitive with other Arbitrum DEXes. The 0.30% default rate matches Uniswap and SushiSwap, while PancakeSwap is slightly cheaper at 0.25%. What differentiates Camelot is the dynamic fee model - during volatile markets, Camelot's fees adjust upward to protect LPs, while competitors maintain flat rates regardless of conditions. This can actually benefit traders during calm periods when Camelot's effective fees may drop below the competition.

The protocol fee of 0.08% is lower than Uniswap's aggressive 0.15-0.25% protocol fee introduced in late 2023, meaning more value flows to LPs on Camelot. The gas costs are identical across Arbitrum DEXes since they all run on the same network.

Real-World Cost Examples

Example 1: $1,000 ETH to USDC swap on Camelot

1. Swap fee (0.30%): $3.00
2. Gas fee: $0.15
3. Total cost: approximately $3.15

Example 2: $10,000 ARB to ETH swap

1. Swap fee (0.28% dynamic, calm market): $28.00
2. Gas fee: $0.20
3. Total cost: approximately $28.20

Example 3: $500 swap of a newer ecosystem token

1. Swap fee (0.35% dynamic, volatile pair): $1.75
2. Price impact (thinner liquidity): ~0.5% ($2.50)
3. Gas fee: $0.25
4. Total cost: approximately $4.50

Example 4: Adding $5,000 liquidity to ETH/USDC concentrated pool

1. Gas for approval (2 tokens): $0.30
2. Gas for adding liquidity: $0.40
3. Total setup cost: approximately $0.70

These costs are reasonable for an Arbitrum DEX. The main cost driver is the swap fee rather than gas, which is a much healthier dynamic than Ethereum mainnet where gas can exceed the swap fee on smaller trades.

Security and Safety

Smart Contract Audits

Camelot has been audited by three security firms across different protocol components:

1. Paladin (November 2022): Audited the core AMM contracts and staking system at launch
2. Peckshield (March 2023): Audited the Nitro Pools incentive system
3. Hacken (September 2023): Audited the spNFT (staked position NFT) system

Audit reports are available through docs.camelot.exchange/security/audits. The codebase is open source and available on GitHub at github.com/camelotlabs.

Security Track Record

Camelot's own smart contracts have not been exploited since launch. The protocol has maintained a clean security record for its core AMM, Nitro Pools, and spNFT systems.

There was an incident in December 2023 involving Aurory's SyncSpace bridge, which was a third-party protocol using a Camelot liquidity pool. An exploit targeted the Aurory marketplace's buy endpoint, allowing the attacker to inflate their balance on SyncSpace and dump tokens on the open market, draining the AURY-USDC pool from $1.5 million to roughly $312,000. Importantly, this was a vulnerability in Aurory's smart contracts, not in Camelot's. No Camelot user funds outside the Aurory pool were affected, and the exploit highlighted the risks of third-party contracts interacting with DEX pools rather than any flaw in Camelot itself.

User Protection Features

1. Bug Bounty Program: Camelot offers a $100,000 bug bounty for critical vulnerability reports
2. 48-Hour Timelock: Contract changes are subject to a 48-hour delay, which is longer than the 24-hour standard used by most DEXes. This gives users more time to review and react to proposed changes.
3. Multisig Governance: Protocol modifications require multiple signatures, preventing unilateral changes by any single team member
4. Open Source Code: All contracts are publicly available for review
5. Dynamic Fee Protection: The automatic fee adjustment system provides LPs with additional protection during volatile market conditions by increasing fees when impermanent loss risk is highest
6. spNFT Transparency: Since LP positions are represented as NFTs with all parameters visible on-chain, users have complete transparency into their position details

The 48-hour timelock is a notable security feature. Most competing DEXes use 24-hour timelocks, so Camelot provides an extra buffer for users to exit positions if they disagree with proposed changes. Combined with multisig governance and the bug bounty, the security framework is solid for a protocol of this size.

Getting Started with Camelot

Connecting Your Wallet

1. Visit camelot.exchange (or app.camelot.exchange) in your browser
2. Click "Connect Wallet" in the top-right corner
3. Select your wallet provider (MetaMask, WalletConnect, Coinbase Wallet-wallet), Rabby, and others are supported)
4. Make sure your wallet is connected to the Arbitrum network. If not, the interface will prompt you to switch networks.
5. Approve the connection request in your wallet
6. Your wallet address and ETH balance on Arbitrum will appear in the header

You will need ETH on Arbitrum for gas fees. If your ETH is on Ethereum mainnet, you can bridge it using the official Arbitrum bridge (bridge.arbitrum.io) or a third-party bridge like Stargate or Hop Protocol. Bridging typically takes 10-15 minutes and costs a few dollars in Ethereum gas.

Making Your First Swap

1. Navigate to the "Trade" section from the main navigation
2. Select your input token (top field) and output token (bottom field)
3. Enter the amount you want to swap
4. The interface will display the expected output, exchange rate, price impact, and minimum received
5. Check that the slippage tolerance is appropriate (default is usually fine)
6. Click "Swap" and confirm the transaction in your wallet
7. The transaction typically confirms within a few seconds on Arbitrum

For first-time users, you may need to approve the token contract before swapping. Camelot will prompt you for this approval step if needed. We recommend doing an unlimited approval to avoid paying the approval gas fee on every trade.

Providing Liquidity

1. Navigate to the "Liquidity" section
2. Choose between V1 (standard AMM) and V2 (concentrated liquidity) pools
3. Select your token pair and deposit both tokens in the required amounts
4. For V2 pools, set your price range (tighter ranges earn more fees but require more active management)
5. Confirm the transaction in your wallet
6. You receive an spNFT representing your position
7. To earn boosted rewards, stake your spNFT in eligible Nitro Pools
8. Optionally, lock your spNFT for longer periods to increase your yield multiplier

The spNFT system is unique to Camelot. Your LP position is an NFT that can be boosted, transferred, or sold. To maximize yields, look for Nitro Pools that match your LP position and consider locking for longer durations to earn higher multipliers.

User Experience

Desktop Platform

The desktop experience is well-polished. Pages load quickly on Arbitrum, transactions confirm in seconds, and the interface provides clear feedback at every step. The medieval-themed design is distinctive without being distracting, and the layout logically guides users from trading to liquidity provision to staking.

The analytics section provides useful data on pool performance, volume trends, and GRAIL/xGRAIL metrics. The Nitro Pools page is well-organized with clear display of available rewards, requirements, and remaining duration for each incentive campaign.

We particularly appreciated the spNFT management interface, which shows all your positions in one view with their current value, earned fees, boost levels, and lock durations. Managing multiple LP positions is cleaner than on most DEXes thanks to the NFT-based system.

Mobile Experience

Camelot does not have a dedicated mobile app in 2026. The web interface is responsive and works on mobile browsers, but the concentrated liquidity position management can feel cramped on smaller screens. Basic swapping works well on mobile, and MetaMask Mobile or Rabby Mobile integrate smoothly with the Camelot web interface.

For users who primarily want to swap tokens and check positions, the mobile web experience is adequate. For active LPs managing concentrated liquidity ranges and Nitro Pool allocations, we recommend using the desktop version.

Customer Support

Camelot's support is community-driven through its Discord server (discord.gg/camelotdex) and Twitter/X account (@CamelotDEX). The documentation at docs.camelot.exchange is thorough, covering protocol mechanics, the spNFT system, Nitro Pools, and xGRAIL staking in detail.

The Discord community is active, and we received helpful responses to questions within reasonable timeframes. The team also publishes regular Medium articles explaining new features and ecosystem partnerships. For a mid-sized DeFi protocol, the documentation and community support quality is above average.

Camelot vs Competitors

Camelot vs Uniswap on Arbitrum: Uniswap has higher TVL and volume on Arbitrum, backed by its brand recognition and multi-chain liquidity. However, Camelot offers several features Uniswap lacks: Nitro Pools for targeted incentives, spNFT positions with boost mechanics, dynamic fees that protect LPs, launchpad functionality, and revenue sharing through xGRAIL. If you are simply swapping major tokens like ETH/USDC, Uniswap may offer slightly better depth. But for ecosystem token trading, liquidity provision with enhanced yields, and access to new Arbitrum project launches, Camelot is the better choice.

Camelot vs SushiSwap on Arbitrum: SushiSwap's Arbitrum deployment carries lower TVL than Camelot and lacks the ecosystem partnerships that drive organic trading volume to Camelot. SushiSwap does offer lending through Kashi and a broader multi-chain presence, but on Arbitrum specifically, Camelot is the more active and better-integrated option.

Camelot vs PancakeSwap on Arbitrum: PancakeSwap deployed on Arbitrum as part of its multi-chain expansion, but its Arbitrum presence is relatively small with lower TVL and volume compared to Camelot. PancakeSwap's slightly lower 0.25% base fee is an advantage for pure swapping, but it lacks Camelot's ecosystem depth, Nitro Pools, and launchpad functions.

The broader picture is that Camelot wins on Arbitrum-specific features and ecosystem integration, while multi-chain DEXes win on brand recognition and cross-chain availability. If Arbitrum is your primary chain, Camelot deserves a place in your workflow.

Who Should Use Camelot?

Camelot is best suited for:

1. Arbitrum-focused traders who want the best execution on ecosystem tokens and early access to new project launches
2. Active liquidity providers who want to maximize yields through Nitro Pool boosts, spNFT locks, and dynamic fee pools
3. Ecosystem participants interested in governance and revenue sharing through the xGRAIL staking system
4. New project teams on Arbitrum looking for a launchpad partner with deep ecosystem connections
5. Yield farmers seeking customizable incentive structures through Nitro Pools

Camelot may not be ideal for:

1. Multi-chain traders who need to trade across Ethereum mainnet, Solana, or other chains from one platform
2. Users seeking the deepest blue-chip liquidity on pairs like ETH/USDC, where Uniswap's Arbitrum deployment may offer slightly more depth
3. Traders uncomfortable with GRAIL's volatility due to its very small 100,000 token total supply
4. Users who prefer a simple swap experience without the complexity of spNFTs, boost mechanics, and Nitro Pool strategies

Frequently Asked Questions

What are Nitro Pools and how do they work?

Nitro Pools are customizable incentive pools that allow projects to reward specific types of liquidity provision. Unlike standard farms that reward all LPs equally, Nitro Pools can set requirements like minimum lock periods, spNFT boost levels, or minimum position sizes. This attracts committed liquidity rather than short-term capital that leaves when incentives end.

What is xGRAIL and why should I stake?

xGRAIL is the staked version of GRAIL that unlocks governance voting, protocol dividend sharing from trading fees, launchpad access, and boosted Nitro Pool yields. xGRAIL is non-transferable and requires a vesting period to convert back to GRAIL. The revenue sharing makes it a form of real yield rather than inflationary token rewards.

What are spNFTs?

spNFTs (staked position NFTs) represent your LP position as a unique NFT rather than fungible LP tokens. They contain your position details, can be boosted by locking for longer periods, transferred or sold on NFT marketplaces, and used as proof of position in Nitro Pools. This adds flexibility and composability to the LP experience.

Is Camelot DEX safe?

Camelot has been audited by Paladin, Peckshield, and Hacken across its core AMM, Nitro Pools, and spNFT systems. The protocol uses a 48-hour timelock (longer than the industry standard 24 hours), multisig governance, open-source code, and a $100,000 bug bounty. Camelot's own contracts have never been exploited. As with all DeFi protocols, smart contract risk remains.

How do Camelot's dynamic fees work?

The V2 concentrated liquidity pools use Algebra's dynamic fee model that adjusts swap fees based on real-time market volatility. During calm markets, fees decrease to attract more trading volume. During volatile periods, fees increase to compensate LPs for higher impermanent loss risk. This happens automatically without any action required from LPs.

Can I use Camelot on chains other than Arbitrum?

Camelot is deployed on Arbitrum One, Arbitrum Nova, and over 15 Arbitrum Orbit chains. It is not available on Ethereum mainnet, Solana, or non-Arbitrum Layer 2 networks. The Orbital Liquidity Network expansion means Camelot serves a growing network of Arbitrum-aligned rollups.

How does Camelot compare to Uniswap on Arbitrum?

Uniswap has higher overall TVL and volume on Arbitrum. However, Camelot offers features Uniswap lacks: Nitro Pools, spNFT positions, dynamic fees, a launchpad, and xGRAIL revenue sharing. For ecosystem tokens and yield optimization, Camelot often provides better opportunities. For simple blue-chip swaps, both platforms perform similarly.

What is the Orbital Liquidity Network?

The Orbital Liquidity Network is Camelot's expansion strategy to deploy across multiple Arbitrum Orbit chains. By providing liquidity infrastructure on these rollups, Camelot creates a unified trading experience across the Arbitrum ecosystem. Revenue from all Orbit deployments flows back to xGRAIL stakers on the main Arbitrum chain.

Final Verdict

Camelot earns its 8.4 out of 10 rating as a protocol that has found its niche and executes on it well. It is not trying to be Uniswap or Jupiter. Instead, it has built a tightly integrated Arbitrum-native DEX with genuinely innovative features like Nitro Pools, spNFTs, and dynamic fees that create real advantages for both traders and liquidity providers.

Our testing experience was positive. Swaps executed reliably and quickly on Arbitrum, the interface was clean and well-organized, and the ecosystem integration was apparent in the depth of liquidity available for Arbitrum-native tokens. The spNFT system took some time to understand but proved genuinely useful for managing and optimizing LP positions. The xGRAIL revenue sharing model provides real yield rather than inflationary rewards, which is increasingly rare in DeFi.

The honest limitations are the Arbitrum-only scope, the lower overall TVL compared to multi-chain giants, the complexity that Nitro Pools and spNFTs add for casual users, and the volatility inherent in GRAIL's tiny 100,000 token supply. The $100,000 bug bounty is also smaller than what larger protocols offer.

For Arbitrum users who are active in the ecosystem, Camelot is a valuable tool that offers capabilities you will not find on Uniswap or SushiSwap's Arbitrum deployments. The Orbital Liquidity Network expansion shows ambition, and the revenue sharing model aligns incentives well. We recommend it for anyone who considers Arbitrum their home chain.