# Carrot Swap
The mission of Carrot Finance is to overcome the intricacies of DeFi and provide an experience familiar to all users. Our core vision is to transform complex DeFi protocols so that both Web3 and Web2 users can access and utilize them with ease. Our primary focus is on the Decentralized Exchange (DEX). With the emergence of various Market Making algorithms such as CPMM, CLMM, and Stable AMM, the range of choices has expanded. However, this breadth of choice has also led users to feel burdened and overwhelmed, acting as a barrier to entry into the DeFi ecosystem.
We address this issue. Recognizing the strengths and weaknesses of various AMMs, we apply them appropriately based on the characteristics of the assets. Furthermore, we empower users by enabling them to manage their assets according to their preferences. \ We promote open collaboration in driving our innovation forward and want to invite you to join our community on [Discord](https://discord.com/invite/yXQhUtZkPv). Ask questions, share your thoughts, or simply connect with us in building a Carrot Finance ecosystem. # Supported Networks Carrot is powered by Neo X Network and currently supports transactions on Neo X Network.
NameInfo
Neo X
# Incentivzed Mainnet Coming Soon # Incentivzed Testnet Since October 2023, CarrotSwap have been running an Incentivized Testnet on the Neo X Testnet. Nearly 30,000 users participated, resulting in 470,000 transactions, 120,000 cross-chain transfers, and 350,000 swaps on the testnet. Through this, CarrotSwap successfully validated the stability and conducted effective marketing campaigns. The rankings and points earned by users participating in the Incentivized Testnet will determine the allocation of airdrop amounts at the time of the Token Generation Event (TGE). Additionally, users who secured the Early Bunny and Second Bunny roles will receive exclusive NFTs from Carrot Swap. The points and rankings obtained in the Incentivized Testnet can be viewed here: . CarrotSwap successfully launched its mainnet in August 2024 and is now planning to proceed with the Incentivized Mainnet. We look forward to bringing more innovations and benefits in the near future. Stay tuned! # Roadmap Carrot Finance offers a solution to mitigate this complexity. Instead of users having to deliberate on which version of the Automated Market Maker (AMM) to select. We plan to introduce the most basic AMM, CPMM, followed sequentially by CLMM and Stable AMM. Additionally, we intend to adopt strategies for the efficient distribution of liquidity. In conclusion, Carrot Finance is tirelessly working to reduce the complexities of DeFi and to offer a more efficient and user-friendly experience. * **Q4 2024** * DEX based on Uniswap V2 * Multi-Chain Launchpad * Concentrated Liquidity AMM * Cross-Chain Bridge * **Q1 2025** * VE(3,3) tokenomics & Staking * Cross-Chain Swap * **Q2 2025** * Automated Market Maker * Coming Soon # Tokenomics TBD # Cross-Chain Transfer The Cross-Chain Transfer feature in Carrot Swap is designed to facilitate liquidity provision to the Neo X chain. By enabling seamless asset transfers across various blockchain networks, this feature helps maximize asset utilization and liquidity within the Neo X chain ecosystem. The Cross-Chain Transfer utilizes a multi-relayer consensus mechanism based on a fork of ZetaChain technology. Each relayer independently validates transactions and reaches consensus with other relayers before transmitting messages. Transactions are processed only when the majority of relayers confirm their validity, ensuring high levels of security and trust within the network. This consensus mechanism guarantees data integrity and transaction reliability in a decentralized environment and includes automated adjustments to maintain network efficiency and stability.
xBNB and xMATIC tokens(xAssets) are collateralized 1:1 with actual BNB and MATIC assets. These collateral assets are securely stored in dedicated smart contracts solely to back the value of xAssets, ensuring that users can transfer xAssets at any time. This structure enhances the transparency and trustworthiness of the assets. The collateral is not used for any other purposes and is exclusively reserved to support xAssets. In the future, Carrot Swap plans to introduce additional assets beyond xBNB and xMATIC. This expansion will provide users with a broader range of asset options and further enhance liquidity across multiple blockchain networks. # xAssets xAssets are tokens issued on the Neo X chain, representing assets from other blockchains, such as BNB and MATIC. Carrot Swap provides this feature to facilitate the seamless transfer of assets from different blockchains to Neo X. * Each native asset (e.g., BNB, MATIC) is perfectly backed to its corresponding xAssets (e.g., xBNB, xMATIC). * The collateralized native assets are securely held in smart contracts on the original blockchain. These assets are not used for any other purpose and are solely reserved for the issuance and redemption of xAssets. ### xAssets Issuance and Redemption Flow #### 1. Issuance 1. **Asset Transfer**: Users transfer native assets (e.g., BNB) from the original blockchain to a designated bridge contract on the Neo X chain. 2. **xAsset Issuance**: Upon confirmation of the transfer, the Neo X chain issues an equivalent amount of xAsset (e.g., xBNB) to the user's Neo X wallet. #### 2. Redemption 1. **xAsset Burn**: Users request the burning of xAssets (e.g., xBNB) on the Neo X chain. 2. **Native Asset Redemption**: The Neo X chain verifies the burn request and withdraws the corresponding amount of native assets (e.g., BNB) from the original blockchain to return to the user's wallet. xAssets, provided by Carrot Swap, play a crucial role in simplifying asset transfers between blockchains and the Neo X ecosystem. By ensuring a 1:1 mapping and secure custody of collateralized assets, users can confidently manage and utilize their assets within the Neo X network. # xUSD xUSD is a stablecoin on the Neo X chain that shares similar characteristics with xAssets but features a broader range of collateral types and supported blockchains. xUSD is backed by stable assets such as USDT and USDC from various chains, including Binance Smart Chain (BSC), Arbitrum, and Base. This flexibility allows users to issue xUSD by bridging USDT or USDC from different networks. ### Bridging and Collateral Users can issue xUSD by transferring USDT or USDC from any supported blockchain (BSC, Arbitrum, Base, etc.). The system will issue an equivalent amount of xUSD on the Neo X chain. * **Collateral Types**: xUSD is collateralized by USDT and USDC from multiple blockchains: * Binance Smart Chain (BSC): USDT, USDC * Arbitrum: USDT, USDC * Base: USDT, USDC The total supply of xUSD is always equal to the total amount of USDT and USDC held as collateral across all supported chains. This ensures that xUSD is fully backed and stable. ### Supply and Redemption When redeeming xUSD, if there is insufficient USDT on a specific chain (e.g., BNB chain), the system will use USDC from that chain or stable assets from other supported chains to fulfill the redemption request. If the selected redemption asset is insufficient, the UI will notify users and prompt them to choose an alternative chain or stable asset to complete the redemption. This ensures a smooth user experience and helps manage cross-chain liquidity effectively.
xUSD, supported by Carrot Swap, offers a flexible and reliable stablecoin solution on the Neo X chain. By utilizing collateral from multiple blockchains and providing an intuitive user interface, xUSD enables easy asset bridging and redemption while ensuring stability and liquidity across different networks. # Launchpad Carrot Launchpad allows its users to create tokens in seconds, without any required knowledge and without needing to provide liquidity. The created token (free of charge except for gas fees) becomes instantly tradable on the platform.
# How it works? Carrot Launchpad is designed to allow projects to efficiently raise funds and swiftly distribute tokens on decentralized exchanges (DEX). Below are the key features and how operates. \ Tokens are created with virtual liquidity (bonding curve), and it is the investors who contribute to the liquidity pool (LP) through their buys and sells. ### 1. Initial Market Cap * The **Initial Market Cap** is determined by the t**arget raising amount** set by the **Minter** (the project creator). * The Minter can freely set the target raising amount, which serves as a crucial indicator for the project's capital raising and initial valuation. * The **Market Cap** is further influenced by the **Bonding Curve** (Linear or Flat) chosen by the Minter, which dictates how token prices will change during the presale process and impacts the overall market valuation of the project. ### 2. Automatic DEX Distribution Upon Reaching the Bonding Curve * Once the Minter's target raising amount is achieved, the tokens are **immediately deployed** to a DEX. This ensures investors have instant access to liquidity, allowing the project to quickly enter the market. ### 3. DEX Distribution by Network * Based on the project's network, tokens are deployed to various DEXs: * On the **Neo X** network, tokens are deployed to **Carrot Swap**. * On the **Base** network, tokens are deployed to **Uniswap V3**. * On the **BSC** (Binance Smart Chain), tokens are deployed to **Pancake Swap**. * This network-specific DEX deployment ensures optimized liquidity and trading stability. ### 4. LP Token Burn and DEX Lock * After the tokens are deployed on the DEX, the generated **Liquidity Pool (LP) tokens are burned**. * Once burned, these LP tokens are permanently locked in the DEX, ensuring the project's liquidity remains secured and permanently tied to the DEX. This reinforces trust and stability in the liquidity pool. # Bonding Curve (Linear vs Flat) Carrot Launchpad provides two types of Bonding Curves, each with distinct characteristics that impact how token prices increase and how liquidity is managed.
#### 1. Linear Bonding Curve The Linear Bonding Curve follows a model where the **token price increases at a constant rate**. As more tokens are issued, the price rises in a linear fashion. * **Characteristics**: * **Price Increase Rate**: The token price rises by a fixed percentage as more tokens are purchased. For example, the price may increase by 1% for every 100 tokens sold. * **Steady Price Growth**: As demand for the token increases, the price **consistently rises at a predictable rate**, allowing investors to anticipate price changes. * **Benefit for Early Investors**: Early investors can purchase tokens at a lower price and benefit from price increases as demand grows. * **Investment Incentive**: The expectation of continuous price increases encourages long-term investors to buy in early before the price rises further. * **Advantages**: * The price changes are **predictable**, offering stability for investors. * It supports the **natural growth** of the project and accumulation of capital. * **Disadvantages**: * If demand surges rapidly, it can cause sharp price increases, which may deter some investors. #### 2. Flat Bonding Curve The Flat Bonding Curve keeps the **token price fixed at a constant level**. This means that no matter how many tokens are purchased, the price remains **unchanged during the initial sale phase**. * **Characteristics**: * **Fixed Price**: The price remains the same for a specific period or until a target is reached, allowing both early and later buyers to purchase tokens at the **same price**. * **Increased Liquidity**: Since the price remains stable, more investors can buy tokens without worrying about price increases, which can **rapidly increase liquidity**. * **Short-Term Fundraising**: This model is effective for quickly raising funds, focusing more on **rapid liquidity accumulation** than on the opportunity for price increases. * **Advantages**: * Lower price pressure on early participants, making it easier to **attract more investors**. * All participants get **equal opportunities** to buy tokens at the same price. * **Disadvantages**: * Investors may find it difficult to benefit from **price appreciation**, as the price remains fixed. * In cases of sudden demand, the **price adjustment is delayed**, which may cause liquidity management challenges. # What is Bonding Curve? A **bonding curve** is a mathematical model that governs the price of a token based on the supply and demand dynamics. It creates a direct relationship between the price of a token and the number of tokens available in circulation, providing a transparent and automated pricing mechanism. This model is commonly used in decentralized finance (DeFi) projects to facilitate the issuance and exchange of tokens without relying on traditional market makers. #### Key Components of a Bonding Curve 1. **Price Formula**\ The bonding curve is represented by a predefined mathematical formula that determines the token price. The most common types of bonding curves include: * **Linear Bonding Curve**: The price increases linearly as more tokens are bought. * **Exponential Bonding Curve**: The price increases exponentially with each token purchase, making later purchases significantly more expensive. * **Sigmoid Bonding Curve**: The price increases slowly at the beginning and end, but more sharply in the middle. 2. **Supply and Demand Relationship**\ The bonding curve establishes a direct link between token supply and price: * **As more tokens are purchased**: The token supply decreases, causing the price to rise. * **As tokens are sold**: The token supply increases, which may cause the price to fall. 3. **Continuous Liquidity**\ A key benefit of the bonding curve model is **continuous liquidity**. Unlike traditional markets where liquidity might depend on the number of buyers and sellers at any given moment, the bonding curve guarantees that tokens can always be bought or sold at a price determined by the curve. #### How the Bonding Curve Works in Practice 1. **Early Investors Benefit from Lower Prices**\ At the start of the bonding curve, the token price is relatively low. This incentivizes early investors to participate early in the fundraising process. As tokens are purchased, the price gradually increases according to the bonding curve formula, rewarding those who enter the project at an earlier stage. 2. **Price Increases with Demand**\ As more tokens are bought and demand grows, the price automatically increases. This allows the project to raise capital progressively while giving investors transparent pricing. Later investors will pay a higher price due to increased demand and lower token availability. 3. **Fair and Transparent Pricing**\ The bonding curve model provides a **transparent and fair mechanism** for token pricing. Investors are able to see how the price changes with each transaction, ensuring there is no hidden manipulation of token prices. The curve is predefined and executed through smart contracts, which automates the entire process. #### Example of a Bonding Curve Imagine a project launches a token sale using a linear bonding curve. The formula might state that for every 100 tokens sold, the price increases by 1%. So if the initial price is $1 per token: * The first 100 tokens will cost $1 each. * The next 100 tokens will cost $1.01 each. * The price will continue to increase by 1% for each batch of 100 tokens sold. #### Benefits of Using a Bonding Curve 1. **Incentivizes Early Participation**: Early buyers benefit from lower prices, which encourages quick capital injection into the project. 2. **Automatic Pricing**: The token price adjusts dynamically based on demand, without requiring manual intervention or market makers. 3. **Liquidity Guarantee**: Tokens can always be bought or sold on the bonding curve, ensuring continuous liquidity for investors. 4. **Transparency**: The pricing mechanism is pre-programmed and visible to all participants, reducing the risk of price manipulation. # Service fees | Action | Fees | | ------------------------ | ---------------------------- | | **Token Creation** | No fees (excluding gas fees) | | **Trading on Ape.Store** | 1% fee on buys/sells | | **Listing on DEX** | No fees (excluding gas fees) | # Roadmap **2024 Q4** * Release Concentrated Liquidity * Start Original Contents Marketing * Marketing collaboration through partnerships. **2025 Q1** * Release Cross-Chain Swap * Release Launchpad on N3 **2024 Q2** * Mainnet launch * Initial token emission begins * Release Launchpad on Neo EVM **2024 Q3** * Release VE(3, 3) Governance & Staking * Marketing collaboration with over 3 korean community **After 2024 Q3** * Integrate 3rd party bridge (Layer Zero / Zeta Chain / Poly Bridge etc) * Deploy to different EVM chains * Integrate with 3rd party ALM * Migration $CARROT to OFT
# Concentrated Liquidity CarrotSwap is at the forefront of decentralized finance innovation, adopting the Concentrated Liquidity Automated Market Maker (AMM) model from Uniswap V3. This adoption marks a significant leap in capital efficiency, boasting an improvement of over 4000 times compared to the traditional V2 AMM model. **1. Targeted Liquidity Provision**\ Liquidity providers in CarrotSwap have the flexibility to supply liquidity within their chosen price range. This strategic approach not only reduces impermanent loss but also enables them to earn higher fees. **2. Enhanced Trading Experience**\ For traders, CarrotSwap offers the ability to execute transactions at more favorable prices and with reduced slippage. This enhanced trading efficiency is a crucial advantage for users seeking optimal trading conditions. **3. Advanced Security with MEV Resistance**\ Built on the Neo EVM, CarrotSwap inherently resists Maximal Extractable Value (MEV) attacks. This security feature provides traders with a safer and more reliable trading environment, safeguarding their interests against potential vulnerabilities. ## What is Concentrated Liquidity? {% hint style="info" %} **Сoncentrated liquidity** — is the liquidity allocated within a custom price range. {% endhint %} Concentrated Liquidity represents a groundbreaking liquidity solution that enables liquidity providers (LPs) to **maximize their capital efficiency** and **mitigate impermanent loss** by concentrating their liquidity within a specific price range. This innovative feature allows LPs to stake a specific token pair within a defined price range. {% hint style="success" %} The APR is dependent on the TVL of the position, the amount of time that the position has been active, and the width of the range. {% endhint %} ## v2 vs v3 Earlier implementations of AMMs used the so-called XYK model, based on the x\*y=k price curve. The idea was to maintain constant balance within a liquidity pool so that the total value of one token would always equal the total value of the other token in the pool; regardless of their current price against each other. With the XYK model, the liquidity in the pool is spread across all possible price ranges. As a result, the liquidity providers (LPs) are earning far smaller trading fee bonuses — which is their compensation for the risk they take. They also suffer from higher slippage, because the majority of their liquidity never gets used in pools of this type at all. Concentrated liquidity tries to boost capital efficiency, and to make up for the inadequacy of the original formula. Within the new model, liquidity can be allocated to a price interval, resulting in what is called a concentrated liquidity position. LPs can open as many positions in the pool as they wish, thereby creating unique price curves aligned with their personal needs and preferences. When the price enters a specific range, the liquidity aggregated for that range starts collecting trading fees, with each LP receiving their slice of the fee pie, proportionally to their contribution to the total liquidity inside of that price range alone. As the price moves up and down, liquidity from different LPs is used to execute the swaps. Consequently, users are making trades against the aggregated liquidity from all liquidity positions covering the current price, and there is no difference for those whose liquidity their swaps are utilizing. There are a number of benefits and advantages that the new model of pooling liquidity offers both LPs and traders. Now, LPs can allocate their capital to the preferred price intervals, consolidating their funds to earn more fees and using liquidity more efficiently. At the same time, traders enjoy deeper liquidity when and where it’s needed most, as well as profiting greatly from reduced slippage. {% hint style="info" %} [References and more details.](https://help.algebra.finance/en/liquidity/what-is-concentrated-liquidity) {% endhint %} # Cross Chain Interoperability To foster the rapid growth of Neo EVM and CarrotSwap, it is essential to make it easy for users to attract liquidity from other chains. The most vital aspect of this is Cross-Chain Interoperability. CarrotSwap aims to position this element as a core strategy in its development. This approach will enable seamless interaction with various blockchains, thus facilitating the transfer and exchange of assets across different platforms. By focusing on interoperability, CarrotSwap can significantly enhance its appeal and utility within the broader blockchain ecosystem. ## Cross-Chain Swap CarrotSwap plans to introduce Cross-Chain Swap by the first quarter of 2024. This development will enable users to instantly swap assets they hold on other chains for assets on the Neo EVM chain. This innovation eliminates the need to transfer liquidity through centralized exchanges, a process that can often be cumbersome and inefficient. Instead, users will be able to onboard onto Neo EVM with just a single transaction, significantly simplifying the process and enhancing user experience. This feature is set to make the transfer and management of assets across different blockchain platforms more accessible and efficient, contributing to the growing interoperability in the blockchain ecosystem. ## Cross-Chain Migration / Interface As cross-chain technology advances, users will no longer need to choose a specific blockchain for their transactions. With this technology, a transaction initiated on Ethereum, for example, can function as if it was directly initiated on Neo EVM. CarrotSwap aims to develop this sophisticated cross-chain technology to maximize user convenience and accessibility. This means that users won't have to specifically select the Neo EVM network in their wallets to utilize all the features of CarrotSwap. Instead, they can conduct transactions on their preferred chain. The transactions will be processed on Neo EVM, and the results will be seamlessly relayed back to the user. This approach significantly enhances the user experience by providing flexibility and simplifying interactions with different blockchain networks, making the process more intuitive and user-friendly. ## OFT & integrate with 3rd party protocols In the long term, Carrot aims to evolve into a fully-fledged Omnichain DEX, migrating and wrapping $CARROT tokens and other assets in the Neo ecosystem into Omnichain Fungible Tokens (OFT). The ultimate goal is to revolutionize the trading of Neo ecosystem assets, making them chain-agnostic and easily tradable across various blockchain networks. As an Omnichain DEX, Carrot will be able to integrate more seamlessly with Automated Liquidity Management (ALM) protocols like Gamma and Arrakis, as well as with Cross-Chain Aggregators and other third-party protocols. Leveraging this advantageous position, Carrot plans to actively attract and collaborate with these third-party protocols. This strategy is expected to enhance liquidity utilization and maximize protocol profits, thus contributing to the overall growth and efficiency of the DeFi ecosystem on Neo.
# Launchpad # Drops Drops is a platform where various Neo-based projects can use Carrot Swap's user base and infrastructure to most effectively distribute initial token resources and successfully perform the entire process from distribution plan-execution-distribution to liquidity activation. Projects can gain high attention and form a potential user pool by conducting airdrops for CRT stakers who are strong supporters of CarrotSwap and CRT. Projects can use this as a growth engine for future liquidity inflow, and users who participate in CRT staking can obtain staking rewards as well as opportunities and additional rewards for participating in new projects earlier than anyone else. ### Projects * Projects can build an initial token economy and distribute their tokens without any additional cost and resource * Projects can promote their own project contents in CarrotSwap community and secure new holders through airdrop * Projects can create an initial liquidity and secure liquidity suppliers by effectively exposing their contents to existing CarrotSwap users, and can interlock the liquidity with another project in the future * With technical support regarding smart contracts, Airdrop can be carried out transparently and safely * Mutual marketing can be conducted through consultation with CarrotSwap ### CRT holders * Users who participate in CRT staking can earn additional profits in addition to CRT rewards * Without having to search for multiple platforms where airdrops are held, CRT staking makes it easy to receive token airdrops distributed in Neo ecosystem * You can preempt various financial opportunities that new projects will provide ### CarrotSwap * As more sound projects enter the Carrot Swap ecosystem through Drops, the Carrot Swap ecosystem will gradually expand, creating a virtuous cycle in which Carrot Swap and projects who participate in Drops grow together. Users of Carrot Swap can enjoy new financial opportunities provided by projects that can combine with the CRT token economy. Drops will contribute to a growth of CRT value and play an important role in the development of the Carrot Swap ecosystem. ### How to participate in Drops Users participating in CRT staking are automatically eligible for airdrops for new projects supported by Drops. There is no necessary participation procedure other than CRT staking, and airdrop tokens are distributed based on the amount of vCRT held. Users who participate in CRT staking for a long time earn more vCRTs, so the Airdrop benefit also increases. The number of airdrop rewards distributed to CRT holders can be checked based on the snapshot at 09:00 GMT every day, and compensation can be received at once after the end of the airdrop. # Tokenomics ## VE(3, 3) & Deflationary Tokenomics VE(3,3) - Vote Escrow / Protocol-owned-AMM represents one of the most advanced tokenomics approaches, effectively addressing the dilemma of maintaining the value, utility, and rewards of governance tokens. CarrotSwap designs its tokenomics based on the VE(3,3) model. This approach allows for a more sustainable and balanced economic system within the platform, ensuring that the governance tokens retain their value while providing utility and incentives to the token holders. ## Liquidity Gauge Essentially, liquidity providers receive fees in the form of LP tokens as compensation for utilizing their liquidity. CarrotSwap, in addition to this basic fee, emits additional $CARROT tokens to incentivize liquidity attraction. To receive the emitted $CARROT tokens, LP NFTs must be staked in the Liquidity Gauge. The LP NFTs staked in the Liquidity Gauge are rewarded with $CARROT tokens as additional compensation, the amount of which is determined by governance decisions. This mechanism is designed to enhance liquidity provision on the platform, making it more attractive for users to participate as liquidity providers. ## Vote Escrowed $CARROT Users can choose a duration to stake their $CARROT tokens. Depending on the staking period chosen by the user, they receive veCARROT tokens in the range of 0.01 to 1 in exchange. veCARROT serves as a voting right in the governance activities of the Carrot ecosystem. Through veCARROT, users can decide how to allocate rewards among the LP pools staked in the Liquidity Gauge. Additionally, they can participate in governance activities such as deciding on the progression of launchpads, implementing new features, and utilizing the community treasury. Once the duration is set and the tokens are locked, $CARROT cannot be traded or transferred in the market until the set time elapses. This mechanism continuously encourages long-term staking of $CARROT, thereby reducing downward pressure on its price. It's a strategic approach to ensure user engagement and token stability within the Carrot ecosystem.
## Deflationary Curve's inflationary tokenomics failed to maintain value, and the rebase model introduced by Solidly to improve this situation appears to protect holders' interests on the surface. However, in reality, it results in a reduction of the fee income that holders receive. CarrotSwap recognizes these problems and designs a sustainable tokenomics model that aims to uplift value while satisfying holders, liquidity providers, and traders alike. $CARROT will emision 1,000,000,000 tokens over a period of 4 years. During this period, 35% of the protocol's revenue will be deposited in $CARROT's liquidity pair, and an equivalent amount of $CARROT will be distributed to stakers. Additionally, 5% of the revenue will be used to repurchase and burn $CARROT from the market. This approach is geared towards creating a balanced and sustainable economic ecosystem that benefits all participants. **Fee Distribution in Initial Emission Duration (4 years)**
Ratio
Rewards for Liquidity Providers50%
Rewards for $CARROT Stakers (as supply LP)35%
Buyback $CARROT3%
Buyback $CARROT and Burn5%
Community Treasury7%
After the initial four-year token emision period, the distribution ratio of protocol revenue will be readjusted. The rewards paid to $CARROT stakers will no longer be newly issued tokens but will instead be entirely comprised of $CARROT repurchased from the market. Additionally, the rate at which $CARROT is bought back and burned in the market will increase. **Fee Distribution after Initial Emission Duration**
CategoryRatio
Rewards for Liquidity Providers40%
Rewards for $CARROT Stakers (as supply LP)5%
Buyback $CARROT40%
Buyback $CARROT and Burn10%
Community Treasury5%
## Token Info Token Name : Carrot / $CARROT Initial Supply : 1,000,000,000 Max Supply : 1,000,000,000 The detailed token allocation is TBD # Concerns ## Transaction Concern ### Fake Token * Anyone can create a token and give it any name. A common practice is when scammers create fake tokens named after legitimate projects before launch. Also, it is a new project created to trick the community into token buying. * Victims buy fake tokens to make a profit without careful checking, but it will leave only worthless tokens with no way to convert them back to legitimate ones. Worse, it could be a malicious token that puts the rest of the funds in your wallet at risk. ### Mitigation * Please visit the project documentation to verify the token address or ask for a verifiable source for new projects. * The CRT token contract address is as follows (To be announced after the token is released). ## Front Running ### Concern * Front running is for the bot to monitor pending trades and pay a higher gas fee to trade at a price risk when placing a trade. * This is mainly happening for large trades that are profitable to the forerunners. ### Mitigation * You can set a slippage tolerance to avoid trading at unwanted prices. * If you're submitting a large trade, you can break it up into several smaller transactions, making them less attractive to the leader and less likely to be in the lead. ## Liquidity Provider/Yield Farmer Concern ### Impermanent Loss (IL) ### Concern * The permanent loss represents the difference between the asset value you hold in AMM and the asset value you hold in your wallet. Providing liquidity to the liquidity pool results in permanent loss due to Automated Market Maker's rebalancing mechanism. The popular AMMs, including Carrot Swap, run on the XYK model. Whenever a transaction occurs, the balances of both assets in the LP pool move along the XY=K invariant curve. * The value of assets can always go back to when they first provided liquidity, so permanent losses are only permanent. However, when liquidity is withdrawn from the LP pool, the permanent loss becomes permanent. * If you look at the graph below, you can see the relationship between the price difference of the two assets. ### Mitigation * As IL is caused by the AMM of the XYK model running by default, there is no way to completely avoid the IL at this point. * However, users can minimize IL by choosing asset pairs that are highly price-correlated and tend to move together (i.e., stable coin/stable coin pair). {% embed url="" %} ## Other Concerns ### Smart Contract Concerns * Despite consistent reviews and investigations by our development team and third-party auditing firms, vulnerabilities may exist in our smart contracts. # Contracts Carrot Swap Contract Addresses ### EVM Testnet **Main Contracts**
NameAddress
UniswapV2Factory0x753df473702cB31BB81a93966e658e1AA4f10DD8
UniswapV2Router0x82b56Dd9c7FD5A977255BA51B96c3D97fa1Af9A9
WETH0xdE41591ED1f8ED1484aC2CD8ca0876428de60EfF
Multicall30xD6010D102015fEa9cB3a9AbFBB51994c0Fd6E672
*** **Wrapped Tokens**
NameAddress
xBNB0x3e5E77bC7b2092fD0a9Cf9F6cbeB8198d659362d
xMATIC0x77C5cd83D7285a64d52453173e2385356bb2b473
xETH0xC87bbA752AfD4cF4213A97c06F7E1A900d66EddD
# Design Resources