The Pendle protocol enables the permissionless tokenization and trading of yield. Pendle is currently deployed on Ethereum, and we’re excited to announce that they will now be expanding to Arbitrum too. Pendle splits the yield from yield-bearing assets, giving users the ability to hedge, long yield, and buy assets at a discount.
By welcoming Pendle to the Round Table, Camelot is committed to supporting deep and sustainable liquidity for $PENDLE on Arbitrum.
The first liquidity pool for $PENDLE on Arbitrum is now live, with $GRAIL and $PENDLE rewards going live at 5pm UTC tomorrow, 14th Feb.
A partnership to support innovation on Arbitrum
Camelot is a custom-built protocol that aims to become the native Arbitrum DEX. By building multiple novel features from the ground up, Camelot enables higher capital efficiency and attempts to bring the real-yield approach to a DEX.
Camelot is designed to move away from the standard short-term yield farm model to prioritize long-term and sticky liquidity. Therefore, we’re excited to build deep and sustainable liquidity for Pendle through our custom features, such as Nitro pools, dynamic fees, and spNFTS. Through this partnership, Pendle will be seeding the initial pool with protocol-owned liquidity, with $GRAIL incentives being matched with $PENDLE rewards additionally. This means that users will be able to earn sustainable dual liquidity mining rewards on their PENDLE/ETH positions. Several of our existing Round Table partners are already building with Pendle, and we’re therefore excited to support further collaboration on Arbitrum.
Pendle has the reputation of being an innovative builder on Ethereum, and we’re excited to see the utility and value they bring to the ecosystem. It is a privilege to support them on Arbitrum by welcoming them to the Round Table, and we’re committed to a long-term relationship that provides them with a bespoke service.
The Round Table comprises the key Arbitrum builders, and we are excited that this partnership will further align the ecosystem with collaborating, innovating, and building.
Pendle is a permissionless yield-trading protocol, enabling you to purchase assets at a discount or long DeFi yield. Pendle is currently on Ethereum blockchain and will be expanding its reach to the Arbitrum ecosystem.
Pendle first wraps yield-bearing tokens into SY(standardized yield tokens). Then, SY is split into their principal and yield components, PT (principal token) and YT (yield token) respectively, which allows them to be traded via the custom V2 AMM.
By creating a yield market in DeFi, Pendle unlocks the full potential of yield. Pendle enables users to execute advanced yield strategies, such as:
- Long assets at a discount
- Fixed yield for low-risk, stable growth
- Long yield
- A mix of any of the above strategies
We’re excited about the innovation Pendle brings to Arbitrum, and we’re proud to welcome them into the ecosystem.
Custom-built Liquidity Infrastructure
Camelot’s vision is to build innovative infrastructure that supports other Arbitrum builders through unique custom features:
- Unique AMM implementation that supports volatile & stable assets with dynamic fees (custom fees per pool, as well as per buy or sell direction)
- A custom NFT wrapper for staked positions that allows LPs to be reused for further capital efficiency gains
- Nitro pools allow protocols to incentivize liquidity based on custom requirements permissionlessly
- Innovative escrowed tokenomics that enable a more sustainable protocol that can capture real yield for holders
Camelot will leverage all its unique features to ensure that liquidity is deep and adaptable — tailored to what is most effective for $PENDLE liquidity. For example, Nitro pools will allow Pendle to incentivize liquidity in a custom way, such as by only rewarding LPs that lock for a certain time and deposit over a certain amount.
In addition, we could set custom fees for Pendle pools or add even further custom requirements to Nitro pools. This high level of control will allow us to support the Pendle DAO in building an efficient rewards structure for their token liquidity. Therefore, we can enable highly efficient returns on Pendle liquidity while bootstrapping critical infrastructure that benefits the entire ecosystem.
Most importantly, by welcoming Pendle to the Round Table and building deep liquidity for their token, we hope to foster further innovation within the Arbitrum ecosystem. For example, deeper liquidity for Pendle could open up new opportunities for use in other DeFi primitives.
The quest for $GRAIL
The Camelot Castle has quickly become the natural home for Arbitrum native protocols, and we’re excited to be supporting so many builders.
In just over two months, Camelot now has over $50m TVL, with a current daily trading volume of $18m. The Round Table has expanded significantly, with Vela, Justbet, Factor, Perpy, Plutus, and many more joining the ranks. In the coming weeks, we’re excited to host the exclusive launch of some of the most promising Arbitrum protocols.
Nitro Cartel will be hosting their public sale on Camelot starting 17th Feb, with Factor DAO following shortly after on the 20th. The excitement continues, with several more launches planned for March and beyond.
We’re proud to support the entire Arbitrum ecosystem, and we thank our Knights for their loyal support.