Camelot is coming to Demeter🎊

Arbitrum liquidity providers and DAOs can soon use Demeter.sperax.io to stake Camelot LP tokens, launch new yield farms, and bribe for SPA emissions. DAOs use Demeter to flip economic forces in their favor. Benefits include reducing overall liquidity expenditure and selling pressure on the native DAO token.

By adding Camelot to Demeter, the SPA Gauge has become the first Arbitrum native liquidity incentive system to operate across multiple DEXs.

This new collaboration builds off a long-established partnership between the SPArtans of SperaxDAO and the Knights of Camelot. During the depth of the 2022 bear market, the Knights and SPArtans aligned with a partnership: SIP-22. We are expanding on this relationship by allowing for Camelot liquidity pairs to be staked on Demeter, earning SPA from the Gauge.

Servicing Economic Demand on Arbitrum

Key performance indicators show that Arbitrum is the fastest horse in the Defi race. As Vitalik’s rollup-centric roadmap continues to play out, Arbitrum attracts the largest share of economic activity. Demeter is here to offer better access to the community’s preferred financial services on Arbitrum with engineering, marketing, and financial automation (more on this here). Arbitrum economic indicators:

• Total Value Locked
  A chain is only as powerful as the resources available to builders and users in the ecosystem. On-chain value is the fundamental resource needed for a flourishing defi ecosystem.
• TVL By Chain
  Arbitrum 2.3B
  Avalanche 0.94B
  Polygon 1.2B
• Arbitrum DEX Volumes
  Arbitrum DEX volumes surpassed Ethereum. Arbitrum’s DEX volumes are far greater than all the alternative scaling solutions combined. Hear it on Twitter from Arbitrum co-founder Steven Goldfeder.

ARB Token Trading volumes

Arbitrum users continue to display their on-chain preference by looking at the velocity of the native token, ARB. In the last seven days, ARB/ETH on Uni v3 has traded about $1B, and the ETH/USDC pair has traded $1.03B. A non-material difference between Arbitrum and ETH volumes indicates on-chain demand for ARB and Defi savviness of the user base.

DAOs Improve On-Chain Liquidity Using Demeter

With Demeter + Camelot, launch a token on or migrate a token to Arbitrum in a no-code environment. SperaxDAO built Demeter to encourage the use of open-source, censorship-resistant financial tools. As mentioned in the SPA Gauge launch article, these tools provide self-custody, access to the Defi ecosystem, and automated financial actions, all of which benefit the DAO and their users.

After fair launching on Camelot, or simply launching a new liquidity pair, DAOs get unique benefits when pairing with USDs instead of USDC:

• Earn SPA and xGRAIL(token of Camelot DEX given as incentive for liquidity on app.camelot.exchange)
• Reduce sell pressure on DAO token
• Reduce overall liquidity spend from DAO treasury

SPA Gauge Goes Multi-Dex

The SPA gauge is the first DEX-agnostic and multi-DEX gauge on Arbitrum. The SPA Gauge incentive structure prioritizes USDs circulating supply instead of DEX TVL. The first integration was Uniswap for obvious reasons. When assessing where to go after Uniswap, the clear choice was Camelot.

Since the launch in December of 2022, Camelot has attracted over $100M in sticky liquidity to their DEX — rapidly approaching the $300M of Uniswap. Camelot offers tools for Abitrum DAOs to execute token generation events and has proven to be the liquidity venue of choice for many of Arbitrum’s leading projects.

Aligning Economic Forces

Projects that need on-chain liquidity should use Demeter. By seeding their governance token against USDs, this pool can earn SPA from the SPA gauge. Once approved for a SPA gauge, projects flip economic forces in their favor. Two significant forces are at play when a project is considering incentivizing on-chain liquidity for their token with traditional emissions-based incentives: inflation/spending from the DAO treasury and sell pressure from these emissions.

• Reduce DAO Token Spend — When using Demeter + Camelot, the DAO gets two different financial subsidies 1) SPA Gauge boost 2) xGRAIL emissions
• Reduce DAO Token Sell pressure — When using Demeter + Camelot emissions aren’t your native DAO token but instead LPs are incentivized with SPA and xGRAIL

Driving Value to SPA

The SPA Gauge directly incentivizes the growth of USDs circulating supply. As the circulating supply of USDs grows, the SperaxUSD protocol benefits from additional protocol revenue. The launch of the SPA Gauge has multiple economic forces at play in the background:

• Decrease SPA Emission: Additional financial incentives offered by Camelot DEX in the form of xGRAIL allow more USDs circulating supply growth for fewer SPA emissions.
• Bribe Revenue: VeSPA holders (SPA stakers) benefit from a new source of yield: bribes. If they wish to collect yield in SPA, bribe primary pools. For yield in other assets, bribe alternative pools.
• Increase SPA buyback: More USDs in circulation means more SPA being bought by the protocol. 25% of the yield on USDs collateral and 50% of protocol fees are used to buy back SPA from the open market.
• Increase SPA accumulations for gauge control: Protocols may wish to accumulate veSPA to control SPA emissions. Saddle and Layer2DAO have already executed token swaps with Sperax DAO to build a position.

By adding Camelot to Demeter, the SPA Gauge officially becomes the first Arbitrum native liquidity incentive system to operate across multiple DEXs.

Go to Demeter.sperax.io to stake an LP token or launch your very own yield farm today.

About Us

Sperax USD is a stablecoin and yield automator on Arbitrum. Hold $USDs and earn Auto-Yield. Stake $SPA to govern the collateral investment strategy and share revenue.

Read more at sperax.io and join the Sperax community!

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