Camelot V2

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Camelot V2 is an automated market maker on Arbitrum using paired liquidity pools. A liquidity provider holds both sides of each pair, and when prices diverge the pool mechanically sells the appreciating asset and accumulates the depreciating one, so the provider exits worth less than holding the assets outright. Camelot confirms that V2 liquidity requires a 50:50 pair and earns swap fees and incentives, directly satisfying the v1 AMM-LP dossier. The August 15, 2026 survey reported about $5.48M across nine chains; size and chain expansion do not change the inventory-transfer mechanism.

Kill criteria: the events that revoke this verdict
• Ships a product line without impermanent-loss exposure that merits its own review

The research file

Mechanism applicability

Camelot documents V2 as a dual-liquidity AMM built from a UniV2 constant-product formula for volatile pairs and Solidly-style math for correlated pairs. Its FAQ states that V2 liquidity providers deposit equal values of two assets, while swaps change the pool inventory and fees accrue to LPs. Those facts meet both requirements of the shared v1 amm-lp dossier.

Current observation and perimeter

The DefiLlama API read on 2026-08-15 classified Camelot V2 as a DEX, measured tokens locked in its liquidity pools, and reported approximately $5.48M across Arbitrum, ApeChain, Reya Network, EDU Chain, Gravity, Superposition, Xai, DuckChain and Rari. Camelot says it has no intention of discontinuing V2, so this is a live multi-chain AMM record rather than an archived product.

Control and exit applicability

Pool creation is permissionless, and LPs may receive both swap fees and campaign incentives. Removing liquidity returns the pool’s then-current token mix; volatile-pair rebalancing can underperform holding, while even stable-pair LPs retain exposure to both assets and a break from correlation. Thin pools and simultaneous exits add executable slippage and impaired-token concentration beyond headline TVL.

Why the class rule decides

The return source is two-sided market-making inventory, not a contractual single-asset yield. The shared v1 amm-lp dossier therefore decides regardless of Camelot’s current size, fee design or lifecycle. Reopen only for a distinct named product whose return does not require the client to retain paired inventory, impermanent-loss or synthetic market-making exposure, with proposed-size exit mechanics independently verified.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Camelot — V2 AMM design · primary · accessed 2026-08-15
  Supports: V2 AMM, constant-product formula, stable-pair math, dual liquidity, dynamic fees
• Camelot — V2 liquidity and lifecycle FAQ · primary · accessed 2026-08-15
  Supports: 50:50 deposits, LP fees, paired inventory, V2 lifecycle, withdrawal
• Camelot — V2 stable pools · primary · accessed 2026-08-15
  Supports: stable-pair curve, two-asset exposure, correlation risk, LP mechanism
• DefiLlama — Camelot V2 survey record · secondary · accessed 2026-08-15
  Supports: current TVL, multi-chain perimeter, DEX category, liquidity-pool methodology

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.