Turbo

What is Turbo?

What is Turbo?

Turbo tokens are managed leverage tokens on Carrot. Each Turbo token represents a share of a vault that maintains leveraged exposure to an underlying asset — SOL, BTC, GOLD, and others. The vault automatically manages leverage, rebalances when needed, and handles all position management.

You simply buy a Turbo token when you want leveraged exposure and sell when you're done. There's no health factor to monitor, no liquidation risk for you, and no positions to manage.


How it works

  1. Buy — Deposit the underlying asset (e.g., SOL) or a stablecoin and receive Turbo token shares
  2. Managed leverage — The vault borrows stablecoins and acquires more of the underlying asset to maintain its target leverage
  3. Automatic rebalancing — When leverage drifts outside its min/max bounds, the vault rebalances back to target
  4. Sell — Redeem your Turbo tokens for the underlying asset or stablecoin at current NAV

Available Turbo tokens

TokenUnderlying AssetToken Mint
TurboSOLSOLuWmCyJDELc3PyG5JQpRbA4UVa3ra2jRsk8wkdSTEz6W
TurboBTCcbBTCBXEjfmuDGSJxvUGqw1tdSnvpQYuMUGVgxYZLjUWPUcB9
TurboWETWETBxEHFUpAD9ffHPSPom1h4CAydRX5rwNBD5NVA1vfTqbn
TurboOREOREEsxcVcNihswgd44rjeh9sahG4C2zsEJ41pjv5iXHXpBY
TurboZECZECEv919s1wHWQ2cyfTktmUuCBXARo2dqmE9ApMt3uRniuN
TurboGOLDGOLDtJDogHacnKNfFeUMFYqQLn44SqY6YV9MVkm5zxWd9mf

Each token is backed by a dedicated vault that maintains leveraged exposure to its underlying asset.


Each Turbo token has a net asset value (NAV) — the price per share of the vault:

NAV = vault_equity / total_shares

NAV changes based on the underlying asset's price movements, amplified by the vault's leverage. When the underlying asset rises, NAV rises faster. When it falls, NAV falls faster.

Leverage management: Each vault maintains a target leverage with defined bounds:

  • Min leverage — Lower bound. If leverage drops below this, the vault rebalances upward.
  • Target leverage — The ideal leverage level the vault aims to maintain.
  • Max leverage — Upper bound. If leverage rises above this, the vault rebalances downward.

Current leverage for each token is visible in the app.


Fees

Fees vary per vault and per underlying asset:

FeeTypical AmountNotes
Issue (buy)~0.50% (50 bps)Charged when you buy Turbo tokens
Redemption (sell)~1.00% (100 bps)Charged when you sell Turbo tokens
Execution costVariablePrice impact and swap costs, shown before confirmation
Borrow rateVariableInterest on stablecoins borrowed within the vault

The issue and redemption fees are set per vault and are visible before you confirm any transaction. Execution costs from the simulation are also shown upfront.


Turbo vs. Boost

Turbo and Boost both use leverage, but they serve different purposes:

AspectTurboBoost
ManagementFully managed by CarrotYou manage the position
Leverage controlAutomatic rebalancing to targetYou set and adjust manually
LiquidationNo user-facing liquidationYes — must monitor health factor
Token modelToken in your walletPosition account on-chain
Underlying assetsSOL, BTC, WET, ORE, ZEC, GOLDJLP, FLP, ONyc (yield-bearing)
StrategyDirectional leverage (long exposure)Leveraged yield farming (amplified yield)
FeesIssue + redemption feesOrigination + borrowing costs
ComplexitySimple (buy/sell)Advanced (manage position)

Choose Turbo if you want hands-off leveraged exposure to an asset you're bullish on. Choose Boost if you want to amplify yield on yield-bearing assets and are comfortable managing positions.


Risks

No liquidation does not mean no loss

Turbo tokens have no user-facing liquidation — but you can still lose significant capital. Key risks:

  • Leveraged downside — If the underlying asset drops, your losses are amplified by the leverage factor
  • NAV decay — In choppy or sideways markets, frequent rebalancing can erode NAV over time
  • Rebalancing friction — Rebalancing incurs transaction costs and may lock in losses during volatile periods
  • Redemption fee — Exits cost approximately 1%, which reduces returns on short holding periods
  • Smart contract risk — Risk exists in both the vault contracts and the underlying lending infrastructure
  • Borrow rate — The vault pays interest on borrowed stablecoins, which reduces NAV over time

Turbo tokens are best suited for directional conviction over meaningful time periods. They are not designed for short-term trading. See Risks for more detail.


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