Impressive Growth of Camelot (GRAIL) DEX on Arbitrum
Camelot (GRAIL), a decentralized exchange (DEX) that launched on Arbitrum in late 2022, is experiencing significant growth in both trading volume and token value.
According to data from DeFiLlama, Camelot's 24-hour trading volume has surged to nearly $17 million, marking a more than 350% increase since early February. This growth has positioned Camelot as the fourth largest decentralized trading solution on Arbitrum.
In the past week alone, Camelot recorded $147 million in trading volume, representing almost half of its total $316 million volume since inception.
Top 10 DEXs by Trading Volume on Arbitrum as of February 18, 2023
Source: DeFiLlama
Camelot's rise can be attributed to the increased TVL (Total Value Locked) and activity on Arbitrum, Ethereum’s leading Layer-2 solution. Arbitrum is currently the fourth largest blockchain by TVL, with $1.7 billion, surpassing Polygon and Avalanche. Arbitrum also boasts a higher daily transaction count compared to Ethereum.
Additionally, many DeFi projects on Arbitrum are choosing Camelot for their token launches. The latest is Arbitrove (TROVE), which conducted its token sale from February 17 to February 20.
Camelot operates on a dual-token model, featuring the farming reward token GRAIL and the governance token xGRAIL. These tokens can be swapped at a 1:1 ratio (1 GRAIL = 1 xGRAIL). However, xGRAIL can only be converted back to GRAIL after a 6-month lockup period, or 0.5 GRAIL if redeemed after 15 days. Note that xGRAIL is not tradeable.
xGRAIL holders receive a share of the transaction fees on Camelot. Additionally, Camelot uses a portion of its revenue to buy back and burn GRAIL tokens, creating buying pressure.
Since the beginning of 2023, the price of GRAIL has skyrocketed by up to 15 times.
GRAIL Price Movement Since Early 2023
Screenshot from CoinMarketCap, February 18, 2023, 10:20 AM
Some investors believe that Camelot’s continued success is fueled by Arbitrum's lack of a dedicated DEX, similar to Velodrome on Optimism, suggesting that Camelot could further extend its dominance.
Moreover, Arbitrum has yet to airdrop its token, leading many to speculate that the use of Camelot might be considered as a criterion for receiving retroactive rewards.
