In the world of cryptocurrency and decentralized finance (DeFi), new players are emerging rapidly, and Camelot (GRAIL) is one of the latest success stories. As reported by DefiLlama, Camelot, a decentralized exchange (DEX) that launched on Arbitrum in late 2022, has experienced a remarkable increase in both its trading volume and its token price over the first two months of 2023.
According to DefiLlama data, the 24-hour trading volume on Camelot is nearly $17 million, up more than 350% from the beginning of February, making it the 4th largest decentralized trading solution on Arbitrum.
In the past 7 days, this DEX has recorded a trading volume of $147 million, accounting for nearly half of the $316 million trading volume in its history.
The rise of Camelot is due to its increasing total value locked (TVL) and activity on Arbitrum, the leading layer-2 solution of Ethereum. Arbitrum is currently the world’s fourth-largest blockchain in terms of TVL at $1.7 billion, surpassing both Polygon and Avalanche. Arbitrum is also currently processing more daily transactions than Ethereum.
In addition, several DeFi projects on Arbitrum are choosing Camelot as the place to launch their tokens, with the latest being the farming protocol Arbitrove (TROVE), which is conducting its TROVE launch from February 17th to 20th.
Camelot uses a 2-token model consisting of the farming reward token GRAIL and the governance token xGRAIL. These two tokens can be exchanged for each other at a rate of 1 GRAIL = 1 xGRAIL at any time. However, 1 xGRAIL can only be exchanged for 1 GRAIL after a lock-up period of 6 months. If you want to receive GRAIL after 15 days, 1 xGRAIL is only worth 0.5 GRAIL. xGRAIL tokens cannot be traded.
Holders of xGRAIL also receive a share of the transaction fees on Camelot. Additionally, the exchange uses a portion of its revenue to buy back GRAIL and burn it, creating buying pressure for the token.
Since the beginning of 2023, the price of GRAIL has jumped up to 15 times its value. Some investors have pointed out that there is currently no dedicated DEX on Arbitrum, like Velodrome on Optimism, making them believe that Camelot will continue to grow even further.
Furthermore, the fact that Arbitrum has yet to airdrop any tokens has many people hoping that the level of usage on Camelot will be considered as one of the criteria for retroactive rewards.
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