Spool is a permissionless DeFi platform that connects Capital Aggregators with DeFi Yield Generators.
With one deposit you can access multiple yield farms of your choosing managed by DAO-curated Risk Models, Spool will auto-rebalance, auto-compound and maximise yield.
By welcoming Spool to the Round Table, Camelot is committed to supporting deep and sustainable liquidity for $SPOOL on Arbitrum. Spool has been building on Ethereum for several years and has recently expanded to Arbitrum. As the Arbitrum native DEX, we’re therefore proud to support their expansion and welcome them into the ecosystem.
The first $SPOOL liquidity on Arbitrum is now seeded, today 20th Mar, with $GRAIL and $SPOOL rewards going live shortly afterwards.
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 Spool through our custom features, such as Nitro pools, dynamic fees, and spNFTS. Through this partnership, Spool will be seeding the initial pool with protocol-owned liquidity, with $GRAIL incentives being matched with $SPOOL rewards additionally. This means that users will be able to earn sustainable dual liquidity mining rewards on their SPOOL/ETH positions. Spool’s novel products will allow for composable innovation on Arbitrum, so we’re therefore proud to reinforce further collaboration on the network.
Spool has been building on Ethereum for several years, and we’re proud 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.
DeFi is an ever-changing landscape. For example, Yields often change based on new market conditions. Another example of this non-static landscape is found in DeFi protocols, which may increase in risk as they become more complicated, or less risky as they become more battle-tested.
This highly dynamic landscape was the breeding ground for Spool. Most users do not have the time, ability, or capital to efficiently (re-) allocate between different Yield Generators.
Spool solves these issues by offering a way to participate in multiple yield generators while maintaining proper diversification, managing risk appetite, and benefiting from economies of scale when it comes to rebalancing and compounding. A user simply deposits into an existing Spool Smart Vault (or makes their own) and in turn enjoys automated and optimized yield managed by DAO-curated Risk Models.
It’s the ultimate “set-it-and-forget-it” solution, since a given Smart Vault will always optimize for the best yield/reward scenario (while being fully decentralized and customizable) with no custodial risks.
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 $SPOOL liquidity. For example, Nitro pools will allow Spool 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 Spool pools or add even further custom requirements to Nitro pools. This high level of control will allow us to support the Spool DAO in building an efficient rewards structure for their token liquidity. Therefore, we can enable highly efficient returns on Spool liquidity while bootstrapping critical infrastructure that benefits the entire ecosystem.
Most importantly, by welcoming Spool 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 Spool 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 three months, Camelot has over $100m TVL, with a current daily trading volume of $40m. 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, such as Sector Finance and Unlimited.
We’re proud to be supporting the entire Arbitrum ecosystem, and we thank our Knights for their loyal support.