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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Exchanges (DEX)

Camelot

# Camelot Fees Methodology

## 1. Overview

Camelot trading fees represent the total fees generated by the Camelot decentralized exchange on Arbitrum from both V2 and V3 protocols. The metric is calculated by multiplying trading volumes by their respective fee rates, which differ between versions - V3 uses dynamic per-pool fee tiers while V2 uses configurable fee percentages that can be updated per trading pair. This metric answers the business question of how much fee revenue the Camelot protocol generates from trading activity.

## 2. Data sources

- **Blockchain events**: Parsed Arbitrum `Swap` events from Camelot V2 pair contracts and Camelot V3 pool contracts
- **Transaction data**: Arbitrum transaction records to identify user addresses for each trade
- **Factory events**: Parsed `PairCreated` events from Camelot V2 factory and `Pool` events from Camelot V3 factory to identify trading pairs
- **Fee update events**: Parsed `FeePercentUpdated` events from Camelot V2 pairs and `Fee` events from Camelot V3 pools to track dynamic fee changes
- **External data**: End-of-day token price feeds for USD conversion and token metadata including decimal precision and symbols
- **Data types**: Daily trading volume calculations, historical fee percentage tracking, and token pair metadata

## 3. Step-by-step calculation

### Component A: Raw trade extraction
- **Purpose**: Extract and normalize trade events from both Camelot V2 and V3 protocols
- **Logic**: For V2 trades, calculate token amounts using `amount0In` minus `amount0Out` and `amount1In` minus `amount1Out` from `Swap` events. For V3 trades, use direct `amount0` and `amount1` fields from `Swap` events. Join with transaction records to get user addresses and create unique trade identifiers using block number and log index
- **Key fields**: `token0_amount`, `token1_amount`, `user_address`, `account_address`, `version`

### Component B: Fee tier and percentage tracking
- **Purpose**: Determine applicable fee rates for each trade based on version and timing
- **Logic**: For V3 trades, join with `Fee` events to get current `fee_tier` values. For V2 trades, use historical fee percentage lookup starting with 0.3% default from pair creation, then tracking updates from `FeePercentUpdated` events. V2 fee percentages are calculated by averaging token0 and token1 fee rates and using window functions to create valid time ranges
- **Key fields**: `fee_tier` for V3, `fee_percentage` for V2, with time-based validity ranges

### Component C: Trading pair metadata integration
- **Purpose**: Add token information needed for decimal correction and pair identification
- **Logic**: Join trades with factory events to identify token0 and token1 addresses for each pair. Combine with token metadata to get decimal precision for both tokens and create human-readable pair names using token symbols
- **Key fields**: `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `account_name`

### Component D: Volume calculation and USD conversion
- **Purpose**: Calculate trading volumes in USD for fee calculation
- **Logic**: Correct token amounts by dividing by 10 raised to the token's decimal precision. Convert both token0 and token1 amounts to USD using end-of-day price feeds. Take the minimum USD value between the two tokens to filter out price manipulation and ensure conservative volume estimates
- **Key fields**: `trading_volume` in USD, derived from minimum of token0 and token1 USD values

### Final aggregation
- **Combining components**: Join trading volumes with fee rate data using account address, chain, and version matching. For V2, use time-based lookups to find the correct fee percentage valid at trade time
- **Currency conversion**: All volumes are already converted to USD using end-of-day price feeds before fee calculation
- **Time aggregation**: Truncate timestamps to daily boundaries and aggregate fees by day
- **Final calculation**: Multiply trading volume by fee rate - for V3 use `trading_volume × fee_tier`, for V2 use `trading_volume × fee_percentage`. Apply standardization and zero-filling for missing days through the finalize metric macro

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

Total value users pay to use a protocol (gross fees, user-paid fees).

CamelotGRAIL

Fees

Fees

Competitive landscape

Chain breakdown