TarotPrice

(TAROT)

Tarot is a decentralized protocol focused on lending and leveraged yield farming. It creates a marketplace where users can participate in two distinct roles: as lenders or as borrowers. Lenders provide assets to earn passive interest, while borrowers use their Liquidity Provider (LP) tokens as collateral to borrow additional assets. This allows borrowers to amplify their yield farming positions, increasing their potential rewards through leverage. The protocol is designed to enhance capital efficiency for users across various blockchain networks.

Unlike traditional lending platforms that use a single liquidity pool for all assets, Tarot utilizes isolated lending pools for specific token pairs. This structure ensures that the risks associated with a particular asset or pair are contained within that specific pool. If a token in one pair experiences extreme volatility or a technical issue, it does not impact the collateral or liquidity in other pools. This isolation provides an essential layer of risk management and protocol stability for all participants.

Leveraged yield farming on Tarot allows users to multiply their farming rewards by borrowing the underlying assets of an LP pair. By using their existing LP tokens as collateral, users can borrow more tokens to re-invest into the same liquidity pool. This process effectively compounds the yield generated. The protocol enables various levels of leverage, such as 2x or 3x, allowing for greater reward potential. However, users must manage their positions carefully, as increased leverage also brings a higher risk of liquidation if asset prices shift significantly.

One of the major benefits for lenders on Tarot is the ability to provide 'indirect liquidity.' When users lend single-sided tokens (such as FTM or ETH) to the protocol, they earn passive interest without being exposed to Impermanent Loss (IL). In the Tarot ecosystem, the risk of Impermanent Loss is borne entirely by the borrowers who use those assets to create leveraged positions. This makes lending an ideal strategy for users seeking a more stable return on their assets compared to active liquidity provisioning.

Tarot prioritizes security by utilizing audited smart contracts and established DeFi frameworks. To protect users from price manipulation and flash loan attacks, the protocol employs Time-Weighted Average Price (TWAP) oracles. These oracles calculate asset prices by averaging them over a specific duration rather than relying on instantaneous spot prices. This ensures that liquidations and borrowing capacities are determined by fair market values. Additionally, the protocol's code has been reviewed by reputable security firms to identify and mitigate potential vulnerabilities.

The TAROT token is the native utility and governance token of the protocol. It is used for voting on protocol parameters, participating in governance decisions, and can be staked in Supply Vaults to earn rewards. Users can also earn TAROT as an incentive for participating in the lending and borrowing markets. TAROT is available on multiple blockchain networks, including Optimism, Arbitrum, and Base. It can be acquired through major cryptocurrency exchanges like LBank or various decentralized exchanges within its supported ecosystems.