How to Earn Up to 26% APR with the stETH-ETH LP on Camelot on Arbitrum
![How to Earn Up to 26% APR with the stETH-ETH LP on Camelot on Arbitrum - - 2024 Camelot on Arbitrum](https://thewealthmastery.io/wp-content/uploads/2023/02/Camelot-on-Arbitrum-1024x536.jpg)
Before we get started, this is not a recommendation or endorsement to buy any token mentioned.
Another week, another new DeFi protocol showing strength on Arbitrum! Camelot is a new "ecosystem-focused and community-driven DEX built on Arbitrum” designed to allow “both builders and users to leverage our custom infrastructure for deep, sustainable, and adaptable liquidity.”
Camelot’s mission is to become the go-to native DEX on Arbitrum, with new and improved flexibility and control tools to bootstrap and sustain their own liquidity. I would compare Camelot’s ambitions on Arbitrum to what we’ve seen Velodrome achieving on Optimism.
Similar to Velodrome, Camelot is based on a dual-liquidity model for LPs, meaning that both volatile (uncorrelated pairs like ETH-FRAX) and stable (correlated pairs like FRAX-DAI) assets can be traded with optimal slippage (see examples below).
![AMM Fees Diagram for Camelot Exchange Camelot Exchange](https://thewealthmastery.io/wp-content/uploads/2023/02/Ammfees-1024x844.png)
Camelot also introduces the concept of dynamic directional swap fees that can be based on market conditions and protocols’ specifics. Here’s how it works!