Camelot V3

Camelot V3 is a concentrated-liquidity automated market maker on Arbitrum. Providers post two tokens inside a price range, and concentration sharpens the AMM problem: when the price leaves the range, the position sits entirely in the losing asset and stops earning fees. That impermanent-loss mechanism is why the registry rejects the AMM category for advised money regardless of protocol quality: the client sees a loss they were never warned about in a position we recommended. Camelot held $13.7 million across 46 pools at the 2026-08-14 survey. A product line without two-sided pool exposure would earn its own review.

Review triggers: events that reopen the verdict
• Ships a product line without impermanent-loss exposure that merits its own review

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-15.

The research file

Exit depth versus TVL, applied

The dossier is explicit that TVL is not the same as executable exit depth: an LP must burn or transfer its position and accept the asset mix and price available at the moment of exit, not the quoted pool size. Thin pools, narrow concentrated-liquidity ranges, volatile constituent tokens, or a simultaneous rush to leave can all produce slippage that leaves the client holding the impaired side of the pair. That inventory-transfer mechanism, not any pool-level security judgment, is what the amm-lp rule rejects for this mandate.

Mechanism applicability

Camelot V3 lets LPs deposit a token pair into a custom price range. Swaps change inventory while active; outside the range the position becomes one-sided and stops earning fees. Concentration changes capital efficiency, not the relative-price rebalancing that applies the shared v1 AMM-LP dossier.

Current observation and perimeter

The DefiLlama API read on 2026-08-15 reported approximately $14.1M across Arbitrum and multiple Orbit or partner chains, led by about $13.1M on Arbitrum. Camelot’s current guide confirms V3 liquidity on Arbitrum and supported Orbit chains; the expanded perimeter does not change the class.

Control and exit applicability

The LP selects pair and range but depends on pool contracts, fees and token behavior. Camelot says a position can be withdrawn at any time, meaning the then-current token quantities; that does not unwind divergence loss or guarantee depth for disposing of either asset.

Why the class rule decides

The shared v1 AMM-LP dossier controls V3 positions. Reopen only for an economically separate product without two-sided inventory or relative-price rebalancing. Then verify chains, contracts, controls, audits and incidents, incentives, token permissions, and stressed exit against direct holding.

Class rule

The amm lp class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Camelot Docs — V3 liquidity FAQ · primary · accessed 2026-08-15
  Supports: concentrated liquidity, paired assets, custom range, one-sided outcome, withdrawal
• Camelot Docs — Arbitrum and Orbit deployments · primary · accessed 2026-08-15
  Supports: Arbitrum, Orbit chains, V3 pools, liquidity deployment
• DefiLlama — Camelot V3 survey record · secondary · accessed 2026-08-15
  Supports: current TVL, chain perimeter, DEX category, survey perimeter

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.