Camelot is an Arbitrum native decentralized exchange with custom liquidity infrastructure. It uses a dual liquidity AMM that combines a V2 model with V3 concentrated liquidity, plus dynamic directional fees and Nitro pools, and it is powered by the GRAIL and xGRAIL tokens.

What do I need to swap on Camelot?

You need a Web3 wallet such as MetaMask or Coinbase Wallet set to the Arbitrum network, along with ETH on Arbitrum to pay gas. Connect the wallet at app.camelot.exchange, choose your tokens, set slippage, approve if required, then confirm the swap.

What is an spNFT on Camelot?

An spNFT is a staked position NFT. You mint one by depositing wrapped LP tokens into the NFTPool contract, which creates a unique, non transferable NFT representing your staked liquidity. Holding it earns swap fees plus xGRAIL and GRAIL farm incentives.

What is the difference between GRAIL and xGRAIL?

GRAIL is the liquid, tradable token. xGRAIL is an escrowed token that requires a vesting period to convert back to GRAIL. You allocate xGRAIL to plugins to earn dividends from protocol fees and to use the Yield Booster, which can raise LP rewards by up to 100 percent.

What are the main risks of using Camelot?

Key risks include impermanent loss when providing liquidity, smart contract risk, slippage on large or thin trades, phishing sites, and the vesting lockup on xGRAIL. Only use the official domain, verify token addresses, and never commit more than you can afford to risk.

How to Use Camelot DEX on Arbitrum: 2026 Guide

May 31, 2026 — By Tony Rabbit in Tutorials

Learn how to swap, add liquidity with spNFTs, and earn GRAIL and xGRAIL rewards on Camelot, the Arbitrum native DEX, in this 2026 walkthrough.

Camelot is an Arbitrum native decentralized exchange built around custom liquidity infrastructure, real yield, and tools for builders. This tutorial walks you through connecting a wallet, swapping tokens, providing liquidity with spNFTs, and understanding GRAIL and xGRAIL rewards on the official app at app.camelot.exchange.

What Is Camelot DEX?

Camelot is a community focused decentralized exchange that runs on Arbitrum. Instead of a single rigid pool model, it uses a dual liquidity automated market maker (AMM) that combines a V2 style design with V3 concentrated liquidity. This lets the protocol route capital efficiently across both volatile and stable pairs.

Two features set Camelot apart. The first is dynamic directional fees, where a pair can charge different swap fees depending on the direction of the trade and on how volatile the assets are. The second is Nitro pools, which let projects add extra incentives on top of standard farm rewards to deepen liquidity for specific pairs.

The ecosystem is powered by two tokens, GRAIL and xGRAIL. GRAIL is the liquid, tradable token. xGRAIL is an escrowed governance token that unlocks dividends and reward boosts when you allocate it to dedicated contracts.

Camelot DEX swap and liquidity interface on Arbitrum

Connecting a Wallet

Camelot is non custodial, so you interact with it directly from a Web3 wallet. You keep control of your keys at all times, and the app never takes custody of your funds.

What you need first

A Web3 wallet such as MetaMask, Coinbase Wallet, or any wallet that supports WalletConnect.
The Arbitrum One network added to your wallet.
ETH on Arbitrum to pay gas fees. Without it, transactions will fail.

Steps to connect

Go to app.camelot.exchange and confirm the URL is correct before doing anything else.
Click Connect in the top right corner.
Select your wallet provider and approve the connection request in your wallet.
Make sure your wallet is set to the Arbitrum network. If you are on another chain, switch networks when prompted.

Once connected, your address and Arbitrum balance appear in the header. You are ready to trade.

How to Swap on Camelot

Swapping is the most common action and takes only a few clicks. The router checks both the V2 and V3 liquidity sources to find an efficient route for your trade.

Open the Swap tab in the app.
Choose the token you want to sell in the top field and the token you want to receive in the bottom field. You can search by name or paste a contract address.
Enter the amount. The interface shows the estimated output, the price impact, and the route used.
Review the slippage tolerance. For volatile or low liquidity pairs, a slightly higher tolerance can help the trade settle, but keep it as low as practical to avoid poor pricing.
If this is your first time trading that token, click Approve and confirm the approval in your wallet.
Click Swap, review the final details, and confirm the transaction in your wallet.

Wait for the transaction to confirm on Arbitrum. The new token balance will update in your wallet and in the app once the block is finalized.

Providing liquidity and minting an spNFT staked position on Camelot

How to Provide Liquidity (Including spNFTs)

Liquidity providers deposit two assets into a pool and earn a share of swap fees. Camelot supports both its V2 pools and V3 concentrated liquidity, where you choose a price range and a fee bracket so your capital works harder within that range.

Add liquidity

Open the Pools or Liquidity section and select the pair you want to provide.
For a V3 position, set your price range and select a fee tier. For a V2 position, simply add both tokens in the correct ratio.
Enter the amounts. The app shows your share of the pool and the tokens required.
Approve each token if needed, then confirm the deposit. You receive LP tokens that represent your position.

Staking with spNFTs

To earn farm incentives on top of swap fees, you stake your position to create an spNFT, which stands for staked position NFT. You mint one by depositing your wrapped LP tokens into the NFTPool contract. The result is a unique, non transferable NFT that represents your staked position.

Holding an spNFT automatically earns swap fees plus xGRAIL and GRAIL farm incentives.
You can apply a lock duration to qualify for a higher reward multiplier.
An spNFT can also be used in other Camelot features such as Nitro pools, where eligible positions receive extra rewards.

To exit, you unstake the spNFT, withdraw your LP tokens, and then remove liquidity from the pool to receive your underlying assets back.

GRAIL and xGRAIL Rewards

Understanding the two tokens is key to capturing real yield on Camelot.

GRAIL

GRAIL is the liquid token of the ecosystem. It can be traded and is distributed as part of farm incentives. Farm rewards typically arrive as a mix of GRAIL and xGRAIL.

xGRAIL

xGRAIL is an escrowed version of GRAIL. It is not directly tradable, and converting it back to GRAIL requires a vesting period. Its value comes from allocating it to utility contracts, which unlock two main benefits:

Dividends. Allocating xGRAIL to the Dividends plugin earns you a share of protocol fees as real yield, distributed to xGRAIL holders.
Yield Booster. Allocating xGRAIL to the Yield Booster can increase your LP farm rewards by up to 100 percent, raising the effective return on a staked position.

This design rewards long term participants. Holders who allocate xGRAIL to these plugins capture more of the value the protocol generates than passive traders do.

Fees

Camelot does not apply one fixed fee to every pool. The dynamic directional fee system lets each pair set fees based on the swap direction and asset volatility. Concentrated liquidity pairs can use multiple fee brackets so providers and traders match the fee to the risk and behavior of the pair.

Separately from swap fees, remember that every transaction on Arbitrum, including approvals, swaps, deposits, and staking, costs network gas paid in ETH. Arbitrum gas is generally low, but you still need an ETH balance to act.

Risks and Safety

DeFi carries real risk, and using Camelot is no exception. Keep these points in mind.

Impermanent loss. Providing liquidity can leave you with less value than simply holding, especially in volatile pairs. Concentrated liquidity can amplify this if price moves outside your chosen range.
Smart contract risk. Audits reduce risk but never remove it. Only commit funds you can afford to leave at risk.
Slippage and price impact. Large trades on thin pools can execute at unfavorable prices. Check the price impact before confirming.
Phishing and fake sites. Always confirm you are on the official domain, app.camelot.exchange, and verify token contract addresses before trading.
Vesting lockups. xGRAIL is not instantly liquid. Plan around the vesting period before allocating large amounts.

This article is educational and is not financial advice. Do your own research before interacting with any protocol.

Conclusion

Camelot brings a flexible, capital efficient AMM to Arbitrum, combining V2 and V3 liquidity, dynamic directional fees, and Nitro pools with a reward system built on GRAIL and xGRAIL. For most users the path is simple: connect a wallet with ETH on Arbitrum, swap tokens, then provide liquidity and stake it as an spNFT to earn fees and farm incentives. To go further, allocate xGRAIL to the Dividends and Yield Booster plugins to capture real yield. Always verify the official site and review the risks before committing funds.

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Frequently Asked Questions

What is Camelot DEX?

Camelot is a decentralized exchange built on the Arbitrum network that lets users swap tokens and provide liquidity. As a DEX, it runs on smart contracts and does not take custody of user funds.

How do I swap tokens on Camelot?

You connect a compatible self-custody wallet, select the token you want to trade and the token you want to receive, review the rate and slippage, and confirm the transaction. The swap is settled on-chain and requires network gas paid in the chain's native token.

What are spNFTs on Camelot?

spNFTs are a form of liquidity position represented as a non-fungible token rather than a standard fungible LP token. This structure allows the position to carry additional attributes and be managed individually.

Do I need ETH to use Camelot on Arbitrum?

Yes, transactions on Arbitrum require the network's native gas token to pay fees, which is ETH on Arbitrum. You should keep a small balance available to cover swap and liquidity transactions.