New V2 upgrades are now available, according to Camelot. The solution is intended to provide extremely efficient trading for the entire Arbitrum ecosystem and will leverage Algebra's V2 proprietary implementation.
Algebra's v2 is a tick-based targeted liquidity AMM on top of Univ3. Three phases will precede the V2's release:
- Stage 1 - On April 8, a liquidity concentration AMM will go live.
- Stage 2 - UI improvements
- Stage 3 - Farms with high productivity and concentrated liquidity
In the upcoming weeks, Stages 2 and 3 will be made accessible.
Since Camelot is designed to support Arbitrum protocols, it naturally bases its strategy for delivering focused liquidity on how the DEX can create the best possible product that native users, traders, and developers will want to use.
The difficulties of concentrated liquidity has been a major barrier to widespread adoption, especially for smaller users who are inexperienced liquidity providers and protocols that lack the ability to actively manage holdings or bootstrap their pools.
Camelot used Algebra's v2 codebase to its full advantage rather than creating a clAMM from scratch, allowing the DEX to focus on making the AMM work with our present infrastructure. By doing this, it is able to set up an AMM that is both suited to Camelot's particular needs and the wider Arbitrum ecosystem and provably effective.
The new AMM will provide a more user-friendly experience with features including directed and dynamic volatility fees, limit orders, rebasing tokens, and customizable tick spacing.
The goal is to increase the usability and accessibility of concentrated liquidity so that the average user and passive LP can benefit from the same efficiency gains as a professional and active trader. By doing this, Camelot believes it will be able to generate more volumes and revenues while also giving protocols a way to bootstrap their pools.