Thread by @CamelotDEX

Fellow knights,

After a long wait, the time has finally come to unveil the new version of Excalibur that will soon launch on @arbitrum

Throughout this week, we will be sharing threads that explain all of our innovative features in detail.

Are you ready to join the quest? ⚔️🧵

In this first thread, we’ll share our main vision for Excalibur, the issues we're trying to solve from building a DEX from the ground up, and a complete overview of its features.

Thereafter, the next threads will each dive deeper into specific parts of the protocol.

So why Excalibur?

Our #1 objective is to become Arbitrum’s native DEX by providing its ecosystem with a wide range of innovative features, enabling protocols to have an extremely high degree of flexibility and control over their own liquidity.

This also includes ways to effectively support new protocols wanting to settle on Arbitrum, offering them all the tools they need to launch, bootstrap liquidity, and sustain their growth.

How to do it?

By allowing those projects to leverage state-of-the-art functionality that can be extremely easily integrated and built upon, as well as a permissionless toolset made to answer to their liquidity and incentives needs.

In order to succeed, we looked for the best ways to apply the #realyield narrative to a DEX and liquidity providing - creating innovative emissions strategies that leverage more sustainable tokenomics, aligning incentives with builders, users, and the protocol.

Now let’s take a closer look at how we have put these different points into practice.

First, the Excalibur AMM V2 has been greatly improved, and is now able to support both UniV2 and stable curves, in order to more effectively trade both volatile and correlated assets.

On top of that, each pair will have its own custom and directional fees, meaning in simpler terms that it will be possible to set different values depending on if you’re buying or selling a specific token, and can even become permissionless over time.

A key V2 innovation will be the introduction of a brand new liquidity approach based on non-fungible staking positions, dubbed spNFTs.

This model substantially improves capital-efficiency for users and introduces more effective ways for protocols to distribute incentives.

spNFTs will serve as an additional layer of features on top of users’ liquidity, providing yield-bearing as well as lock functionalities.

The way they have been designed will open the door to the implementation of advanced custom strategies, and a unique re-usability potential.

Built on top of this tech, the newly introduced Nitro Pools will be the perfect illustration of the latent power of Excalibur’s staking positions.

They will permissionlessly allow protocols to directly incentivize their liquidity with a brand new granularity and accuracy level.

Every protocol will be able to target and promote long-term liquidity, or more generally specific subsets of users actually providing the liquidity it is actively looking for, by adding an additional layer on top of spNFTs.

But we also know that no matter how powerful its features are, a defi protocol isn’t #worthy if it does not come along with carefully crafted tokenomics.

Excalibur will be based on a dual-token model, the native token $GRAIL, and its escrowed governance counterpart $xGRAIL.

On top of governance rights, xGRAIL will confer to its holders the ability to take profit from unique and scalable advantages, such as Dividends (who heard real yield?) or yield boosts, but not only, as a few others are already in the pipeline!

What we have covered here is only a small part of the entire protocol, but should give you a good idea of Excalibur's potential.

Tomorrow's thread will exclusively focus on the AMM part, so stay tuned!

In the meantime, you're welcome to join our Discord: discord.gg/r9V7rry3nz