【Carrot🥕】protocol to automatically operate stablecoin at optimal yield on Solana / proceeds automatically rebased to single token CRT price / @ DeFiCarrot
Seems easy to use, I'm keeping an eye on it.
Good morning.
Mitsui from web3 researcher.
Today we researched Carrot.
🥕What is Carrot?
⚙️Rebased revenue reflected in token prices
💬Solana's next majorIt will be the protocol!
🥕What is Carrot?
"Carrot is a dapp on Solana, an automated format thatIt allows users to earn higher yields from stabled coins in an automated format.Specifically, it simplifies investing with a single yield token and continuously monitors and optimizes yield opportunities across Solana lending platforms such as Kamino, MarginFi, etc.
The mechanism is simple.
Users deposit stable coins (USDC, USDT, PYUSD, etc.) and receive a CARROT TOKEN (CRT), which Carrot deposits into the highest yielding lending protocol on Solana to earn revenue.The earnings are reflected in the price of the CRT, so users can automatically rebase their earnings simply by depositing.
Carrot's rebalancing feature analyzes the market every minute to ensure that assets are always pointed in the most profitable direction; Carrot continuously monitors and dynamically reallocates stablecoin assets to capture the best revenue opportunities within the Solana DeFi ecosystem.
The beta net just opened to the public on August 28, 2024, with a current TVL of 2.65M and a CRT price of $101, up $1.00.The APY at this time is 8.59%.
⚙️Rebasing revenue reflected in token prices
What is interesting about Carrot is that it reflects revenue in the token price; there are stablecoins, such as Ethena, that have revenue sharing features, and while there are staking, lending, and liquidity provision to earn yield, it is often in the form of a new grant in a separate token.
The reason for this is the founders' desire to simplify DeFi operations to the extreme: two of the founders, James Blair and Jack Rieck, are members who have contributed to the Solana ecosystem to date.
They created Carrot because they wanted to provide users with the simplest and most straightforward way to participate in DeFi without the risk of speculation.
Specifically, they pointed out that it is difficult to find the best yield and that one needs to log in to the protocol every time to check the investment returns.
With Carrot, all users have to do is deposit funds, and the operation will automatically start with the best route, and the profit will be reflected in the token price, so users can check the yield only with their wallets without going to the protocol.
In addition, since we are not operating with only one protocol, we can handle black swan events, and transaction fees are inexpensive since large amounts are deposited and moved in bulk.
These aspects have been well received, and on September 11, the company completed a pre-seed round of funding of $600k.
The tokens released at this time are for CRT yields, but there are indications that tokens for governance may also be distributed in the future.
💬It will be the next major protocol for Solana!
Finally, a consideration.
I personally pay a lot of attention to Carrot, as I mentioned the example of Ethena, and as is the case with Blast's USDB, stable coins with yield features are one of the trends.
Another recent trend is that aggregators are gaining momentum.
There are more and more DEX aggregator types, and Yield aggregators for operations are also gaining momentum.Yield aggregators have been around for some time, but new revenue opportunities, for example in the restaking area, are continually emerging with new protocols, so usersIt is easier and easier to deposit with an aggregator.
I have the impression that there have not been many well-known protocols that aggregate as easily as Carrot does on Solana.Many of the major protocols are based on staking or matching liquidity supply, and aggregation of these is only just beginning to increase.
Carrot is simple and looks good.
I am sure similar protocols will emerge in the future, so there will be competition, but I thought it looked like a pretty interesting product, including the product positioning and UI, etc., so I will try it myself.
This is the research for Carrot!
🔗Reference/image credit: HP / X / DOC
Disclaimer：I carefully examine and write the information that I research, but since it is personally operated and there are many parts with English sources, there may be some paraphrasing or incorrect information. Please understand. Also, there may be introductions of Dapps, NFTs, and tokens in the articles, but there is absolutely no solicitation purpose. Please purchase and use them at your own risk.
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mitsui
A web3 researcher. Operating the newsletter "web3 Research" delivered in five languages around the world.
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The author is a web3 researcher based in Japan. If you have a project that is interested in expanding to Japan, please contact the following:
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