Core concepts
Risks
Just like using any of the leading DeFi protocols, there are always risks you should know about. At Carrot, we want to be upfront about the three primary layers of risk:
Protocol Risk
Our fully audited program facilitates integrations with every major DeFi protocol, there is always the added risk with a new Program but we take this very seriously and have multiple audits underway.
Integration Risk
Since the yield we accumulate comes from our integrated protocols, the risks associated with them is also something we have to account for. If one of those protocols is exploited or has a critical design flaw, then by virtue of our funds being there, it is something we have to care deeply about.
Luckily for you, our risk engine is working 24/7 to monitor each protocol and is handling these scenarios much faster than anyone could possibly do manually.
Our Current integration partners are
Lending Risk
When utilization rates are at full capacity, and 100% of the funds have been borrowed - then it follows that as a lender, you are unable to withdraw from the pool! Now this risk also means rates go parabolic as it isn't good for anyone to be in this scenario.
Luckily for you, because our funds are diversified across multiple protocols, we can intelligently balance deposits to ensure we can fulfill redemption requests on demand.