Camelot offers ‘deep, sustainable, and adaptable liquidity’. It is a unique liquidity approach based on non-fungible staked positions, and a dual token system consisting of $GRAIL and $xGRAIL tokens. I will attempt to break down its automated market making, its spNFT’s liquidity approach, and its dual token system.
Camelot's AMM is a crucial component of their ecosystem, designed to be flexible and efficient. It allows users to trade volatile and stable assets with optimal slippage, and introduces dynamic directional swap fees that can be customized based on market conditions and the needs of each protocol. The advantages of this incentivizes trading volume, stabilizes selling pressure, and creates custom fee redistribution schemes. Each project launching on the AMM will have tailored swap rates, creating a fair and sustainable ecosystem.
Camelot will also introduce a new approach to liquidity called spNFTs, which are non-fungible staked positions that create a new layer of composability for AMM liquidity. These spNFTs are designed to address the weakness of farming emissions and allocations in DeFi by providing adequate rewards for every LP based on their long-term commitment.
Interestingly, Camelot has a dual-token system consisting of $GRAIL and $xGRAIL. $GRAIL is a regular ERC20 token with a fixed maximum supply that can be freely bought and sold, while xGRAIL is a non-transferable governance token that can only be obtained by converting $GRAIL. $xGRAIL can be allocated to special contracts called 'Plugins' that offer various benefits such as dividends and yield boosts. The good thing about this kind of system is that it allows for greater interoperability and integration of community / partner plugins. Both $GRAIL and $xGRAIL tokens will be distributed as farming rewards through yield-bearing spNFTs. $GRAIL can be converted to $xGRAIL at any time with a 1:1 ratio, but converting $xGRAIL back to $GRAIL requires a vesting process with a variable conversion ratio based on the chosen vesting duration.
Overall Camelot's approach to liquidity with their AMM and spNFTs seems to be unique and innovative. Additionally, their dual-token system with $GRAIL and $xGRAIL offers benefits for users through the allocation of $xGRAIL to special plugins contracts. Show Less
