Is Camelot Safe?

|DEX
B

Risk Grade: B (24/100)

Camelot is rated as moderate risk — some novel mechanisms, generally well-understood.

Moderate risk — strong Arbitrum ecosystem position but closed-source code and no bug bounty create a blind spot for security

The main decentralized exchange on Arbitrum, offering token swaps and liquidity pools with about $100M in deposits. Over 75 partner protocols use it for liquidity. Its B- grade reflects a closed-source codebase with no bug bounty program, meaning security researchers have no incentive to find bugs before hackers do.

TVL

$20M

Mechanisms

7

Interactions

5

Value Grade

B-

Key Risks for Camelot Users

1.

The code is not public and there is no bug bounty program. If someone finds a vulnerability, they have every incentive to exploit it rather than report it

2.

The trading engine relies on Algebra V2, a third-party library. A bug in Algebra would directly drain Camelot's pools, similar to how Curve lost $73M from a compiler bug

3.

Only 18,386 GRAIL tokens circulate out of 73,506 total. This thin liquidity means a small buyer could manipulate the governance token price or capture the protocol cheaply

Top Risk Factors

  • No public GitHub codebase and no bug bounty program limit independent security review and vulnerability discovery
  • Concentrated liquidity V3 AMM relies on Algebra V2 implementation, inheriting third-party dependency risk
  • Extremely low GRAIL circulating supply (18K of 73K total) creates thin governance token liquidity and price manipulation risk

Risk Score Breakdown

Camelot's highest risk area is Vitality Risk (7/10). Here's how each dimension contributes to the overall 24/100 score:

Mechanism Novelty0/15
Interaction Severity6/20
Oracle Surface0/10
Documentation Gaps4/10
Track Record0/15
Scale Exposure5/10
Regulatory Risk2/10
Vitality Risk7/10

Read the Full Camelot Risk Report

This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.

View Full Report →

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Ratings use Hindenrank's eight-dimension risk rubric. Lower score = lower risk. Grades range from A (safest) to F (riskiest). This is not financial advice.