Estimated Reading Time: 3 minutes

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TL;DR

Operating on Solana, Carrot is a yield‑aggregating DeFi protocol where users can deposit assets in return for the CRT token, which accrues yield from various strategies across the Solana ecosystem. Carrot takes care of managing positions and optimizing yield, meaning users can earn passively on deposits, while there is also the Turbo Tokens feature, which allows users to hold leveraged positions on supported assets without the risk of liquidation.

Today we’ll head back over to Solana, where on‑chain data shows there’s a lot more to the chain than just memecoins, and there are some solid yields to be found on a protocol called Carrot.

As always, you need to be fully aware of the risks before interacting with any DeFi protocol, as you’re opening yourself up to the possibility of smart‑contract exploits, frontend attacks, and stablecoin de‑pegs. Make sure to check the official docs before depositing funds, pay attention to security and audits, and note that this guide is not an endorsement of Carrot.

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Solana DeFi Is Growing

Solana may have gained a reputation as a memecoin casino, but the meme frenzy also helped consolidate its position as arguably the most easy‑to‑use, consumer‑friendly chain, and on‑chain data shows that it’s thriving as a venue for DeFi.

This means that recently, Solana has been leading all other chains by 24‑hour and 30‑day DEX volumes, and it’s the second biggest chain by TVL, after Ethereum.

Table from DeFiLlama

Also, it’s worth noting that since launching at the end of October last year, spot SOL ETFs, collectively, have recorded only green weeks, and have not recorded a single red day since December 3rd, so it’s fair to say that the overall picture when it comes to Solana is very positive.

Chart from SoSoValue

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What Is Carrot?

Operating on Solana, Carrot is a yield‑aggregating DeFi platform that operates around its own yield‑bearing token, CRT. This token is designed to accrue yield from stablecoin strategies across the Solana ecosystem, on platforms including Kamino, MarginFi, and Jupiter Lend, thereby letting holders take a passive approach after deploying capital.

The name “Carrot” comes from carrot and stick, emphasizing rewards and incentives—what every DeFi user is looking for.

From a user point‑of‑view, you deposit stablecoins to Carrot, the protocol takes over from there, and rewards accrue to the CRT tokens you receive in return for your deposit, with CRT increasing in value as yields are earned.

Image: “How CRT works” (from Carrot)

There are no lock‑up periods, meaning you can redeem your funds (and collect any rewards) whenever you like, although there is a 0.05 % redemption fee.

CRT TVL on Carrot is currently only about $24 million, which makes it a small‑cap platform, so keep in mind that liquidity risks are higher than on larger, more established protocols. However, it’s still worth taking a look around.

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How to Use Carrot

There are various strategies you can take on Carrot, so to get started, open the app and connect your wallet. One hurdle I encountered here was that I had to use a VPN before it would let me connect, and after that, the only wallet option was MetaMask (which seems strange when Phantom is the most widely used Solana wallet).

Additionally, I found myself having…

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Author bio: Sam is a qualified journalist from the UK who covers NFTs, Bitcoin, and the cryptocurrency world.