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Breaking down Camelot's ARB Proposal
Sandra Leow
Key Takeaways
5 min read
  • Camelot is regarded as the leading native DEX on Arbitrum with strong connections to established projects.
  • The proposal aims to establish ARB as the base asset for liquidity pools and partner integrations on Arbitrum, providing direct value and utility to the token.
  • By allocating incentives to partners building on Camelot's infrastructure, the proposal aims to fuel innovation, growth, and deeper liquidity across the Arbitrum ecosystem. It ensures that 100% of the requested ARB will flow into LPs and products, benefiting the broader ecosystem.
  • Some argue that the proposal unfairly favors Camelot, potentially creating a higher barrier of entry for other DEXs and leading to biased treatment.


Camelot DAO put out a proposal on June 30th, “Accelerating Arbitrum - leveraging Camelot as an ecosystem hub to support native builders”. It proposes to grant 1.5M ARB per month (~9M in total) to the Camelot DAO for the next 6 months to fund liquidity incentives for Arbitrum-focused projects on Camelot. The proposal aims to support the protocols building on Arbitrum, and more importantly, foster the adoption of ARB as the base asset within liquidity pools and partner integrations.

Why Is the Proposal Necessary?

Deep liquidity is often missing in early-stage DeFi...