Liquidity providers deposit funds into Camelot and receive trading fees from traders (supply-side fees).

Camelot is a non-custodial exchange protocol built on Arbitrum. Camelot was founded by the pseudonymous Myrddin and launched in 2022.

GRAIL tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Camelot

# Camelot Earnings Methodology

## 1. Overview

Camelot earnings represents the net profit generated by the Camelot decentralized exchange on Arbitrum, calculated as total protocol revenue minus token incentive expenses. This metric answers the business question of how much profit the protocol retains after accounting for liquidity mining rewards distributed to users. The calculation combines trading fee revenue from both v2 and v3 AMM pools, then subtracts GRAIL and xGRAIL token incentives paid to liquidity providers.

## 2. Data sources

- **Arbitrum event logs**: Parsed Camelot smart contract events including `Pair_Swap_event` and `Pool_Swap_event` for trading activity, `Factory_PairCreated_event` and `Factory_Pool_event` for pool creation, `Pair_FeePercentUpdated_event` and `Pool_Fee_event` for fee changes, and `NFTPool_HarvestPosition_event` for v2 incentive distributions
- **Arbitrum event logs**: Parsed Angle protocol `Distributor_Claimed_event` logs for xGRAIL incentive distributions
- **Transaction data**: Arbitrum transaction records for user address identification and timestamp validation
- **External data**: End-of-day token price feeds for USD conversion of both trading volumes and token incentives
- **Token metadata**: Token symbols and decimal precision information for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculate USD trading volumes for both v2 and v3 AMM pools from swap events
- **Logic**: Extract swap events from Camelot v2 `Pair_Swap_event` logs (calculating token amount changes as `amount0In` minus `amount0Out`) and v3 `Pool_Swap_event` logs (using direct `amount0` and `amount1` values). Join with trading pair metadata from pool creation events to get token addresses, decimals, and pair names. Correct token amounts for decimal precision using trading pair metadata. Convert both token amounts to USD using end-of-day price feeds, then use the minimum USD value between the two tokens to prevent price manipulation attacks. Join with transaction data to get user addresses and validate timestamps.
- **Key fields**: `token0_amount`, `token1_amount` (corrected for decimals), `trading_volume` (minimum USD value), `account_address` (pool address), `user_address`, `version` (v2 or v3)

### Component B: Fee percentage application
- **Purpose**: Apply dynamic fee percentages to trading volumes to calculate total fees collected
- **Logic**: For v2 pools, track fee percentage changes from `Pair_FeePercentUpdated_event` logs which set `token0FeePercent` and `token1FeePercent` values, averaging them and dividing by 100,000 to get decimal percentages. Default v2 pools start with 0.3% fees. For v3 pools, use fee tier information from `Pool_Fee_event` logs where `feeOtz` values are divided by 1,000,000 to get decimal percentages. Apply the appropriate fee percentage to each trade's USD volume to calculate total fees collected.
- **Key fields**: `fee_tier` (v3), `fee_percentage` (v2), `fees` (trading volume × fee percentage)

### Component C: Revenue calculation
- **Purpose**: Calculate protocol revenue by applying Camelot's fee share to total trading fees
- **Logic**: Apply different protocol fee shares based on AMM version - 40% for v2 pools and 15% for v3 pools. Multiply total fees by the appropriate protocol fee share to get protocol revenue. Aggregate revenue by day, chain, and other dimensional attributes.
- **Key fields**: `revenue` (fees × protocol fee share), `version` determining fee share percentage

### Component D: Token incentive expenses
- **Purpose**: Calculate USD value of GRAIL and xGRAIL token incentives distributed to liquidity providers
- **Logic**: Extract GRAIL token distributions from v2 `NFTPool_HarvestPosition_event` logs using the `pending` amount field and GRAIL token address (0x3d9907f9a368ad0a51be60f7da3b97cf940982d8). Extract xGRAIL distributions from Angle protocol `Distributor_Claimed_event` logs where the `token` field matches xGRAIL address (0x3caae25ee616f2c8e13c74da0813402eae3f496b), using the `amount` field. Convert both token amounts to USD using end-of-day price feeds and correct for token decimals.
- **Key fields**: `amount` (token incentive quantity), `token_address` (GRAIL or xGRAIL), `token_incentives` (USD value)

### Final aggregation
- **Combining components**: Revenue and expenses are calculated separately then combined using an earnings calculation macro that subtracts total daily expenses from total daily revenue
- **Currency conversion**: All amounts converted to USD using end-of-day price feeds, with manipulation protection for trading volumes using minimum token pair values
- **Time aggregation**: Daily aggregation with timestamp truncation to day boundaries, using block timestamps from the underlying events
- **Final calculation**: Net earnings equals total daily protocol revenue (from trading fees) minus total daily token incentive expenses (GRAIL and xGRAIL distributions), with gap filling applied to ensure continuous daily time series

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

CamelotGRAIL

Earnings

Earnings

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