Camelot V2: What It Is, How It Works, and Why It Matters in DeFi

When you hear Camelot V2, a next-generation decentralized exchange built on the Arbitrum network that combines low fees, high capital efficiency, and native yield features. Also known as Camelot DAO, it's not just another AMM—it's a response to the rising costs and inefficiencies of older DeFi protocols. Unlike Uniswap V2, which relies on a simple constant product formula, Camelot V2 uses a hybrid model that lets liquidity providers earn fees and rewards in $GRAIL, the platform’s native token, without needing to stake separately.

What makes Camelot V2 stand out? It’s the way it handles liquidity pools, customizable pools that allow for asymmetric deposits and reduced impermanent loss. This matters because most AMMs force you to deposit equal values of two tokens, which can lock up capital unnecessarily. With Camelot V2, you can add just one token and still earn trading fees—something that’s especially useful for stablecoin pairs or newly launched tokens. It also integrates directly with token vesting, a mechanism used to release rewards over time, preventing dump pressure and aligning incentives among traders and liquidity providers. This isn’t just theory—Camelot’s team has used vesting schedules to stabilize $GRAIL’s price after major airdrops, something many other DeFi platforms failed to do. And unlike platforms that require complex governance votes to change fees or add pairs, Camelot V2 lets community proposals move quickly through a streamlined voting system, making it more responsive to market needs.

There’s a reason traders are shifting from older DEXs to Camelot V2: it’s cheaper, faster, and smarter about how it distributes rewards. You won’t find it on CoinMarketCap as a top 10 exchange, but if you’re active on Arbitrum or holding $GRAIL, you’re already part of a quiet revolution in DeFi infrastructure. The posts below dig into real-world examples—from how users claimed early $GRAIL airdrops to how Camelot’s pool designs reduce losses during volatile markets. Whether you’re a liquidity provider, a trader, or just trying to understand why some DeFi platforms survive while others fade, these guides give you the facts—not the hype.