Alright Fantom fans, we have yet another exciting project in the cards for you! We are pleased to introduce Tarot! BiShares sees great things in the future for this decentralized lending protocol on Fantom Opera chain.
A DeFi lending protocol is exactly what this fund has been needing. Tarot is a platform designed for users to participate as lenders or borrowers in isolated lending pools. As a lender, tokens can be supplied to any lending pool within the platform with the comfort of yielding passive earnings without experiencing impermanent loss. Borrowers, on the other hand, get a place to deposit LP tokens in one of the lending pools to then borrow additional tokens in the token pair. By leveraging LP tokens, users have the opportunity to earn even more LP tokens through leveraged yield farming as well as enhanced liquidity. Users leverage with the expectation that the rewards from having more LP tokens will exceed the borrowing cost.
So how exactly does it work? It’s quite simple and user friendly.
To get an idea of how simple it truly is, let’s look at how deposits are made within the lending pool. Once your wallet is connected, Tarot will display a list of markets with all available lending pools which can be filtered by DEX or token. Once you’ve selected your choice of lending pool, you’ll see an overview of all the information for each borrowable token, including the Total Supply, Total Borrowed, Utilization, Supply APR and Borrow APR. Once you click deposit, you will choose how much you’d like to put in, whether a fixed amount of the max available. Then simply approve, confirm and deposit! Boom! It is that easy.
If you’d like to leverage some LP tokens after making a deposit, you’ll choose how much you’d like. Tarot will then give you an overview of information once again, including New Leverage, New Liquidation Prices, Borrow Fees, Trading APR, Reward APR (if any), Borrow APR, and the Estimated APR for your leveraged position. Approve, confirm, and click leverage and you’re all set.
Borrowing and repaying all work in a very similar way with Tarot always giving you up-to-date and accurate overviews for whichever transaction you’d like to complete. Lending tokens is no different. With a clear, concise platform, Tarot walks you through the process, allowing you to lend and withdraw with ease. For borrowers, there is a one-time fixed fee of 0.1% each time a new loan is taken, with interest that accrues over time. Additionally, borrowers pay a liquidation incentive which ranges from 1% to 5%. Lenders on the other hand, have zero fees associated with lending, depositing, or withdrawing.
Liquidity providers have the chance to earn significant rewards through Tarot, enabling borrowers and lenders to significantly dial up (or down) the risk (and rewards) of this yield, respectively.
Tarot was inspired by other successful projects like Aave, Compound, Impermax, and Uniswap. In an effort to create a new, interesting, and exciting opportunity for DeFi users, Tarot was built with the principles of being permissionless, non-upgradeable, and designed to operate with minimal governance.
The platform has developed a limited supply governance token known as TAROT. The total supply of the token is 100 million. Of that supply, 59 million has been allocated for farming rewards, 19 million for protocol growth, and 13.3 million for the core team. All of these are over a 4 year vesting period. Beyond that, 3.2 million is allocated to LGE participants, 3 million to early users and 2.5 million to initial liquidity.
TAROT is currently listed at $1.77. There are 10,274,282 in circulation with a market cap of $17,751,228. TAROT’s all-time high was on September 7 at $4.10.
The protocol was built by yet another group of experienced developers in the DeFi space with a passion for game theory and protocol mechanics. With plans for a xTAROT staking program, further decentralized governance, increased partnerships with major protocols and more advanced lending pools Tarot has a dreamy future ahead for borrowers and lenders alike. All the cards are on the table, lenders and borrowers, go and have a reading of your own with Tarot!