Tarot Protocol is a Fantom-based decentralized lending protocol that allows users to initiate loan and loan transactions in isolated loan pools.
In this article, we will discuss:
What is Tarot Protocol and how does it work (TAROT)?
Tarot Protocol is a Fantom-based decentralized lending protocol that allows users to initiate loan and loan transactions in isolated loan pools. The platform is made up of smart contracts that run markets without custody and without permission to get 100% decentralized lending and leveraged yield farming.
He also wants to follow the success of some of the most progressive DeFi platforms in the crypto space, which include Uniswap , Aave and Impermax. Tarot's core and peripheral contracts are forked from the Impermax system and are deployed on the Fantom network, and these contracts are permissionless, non-upgradeable, and require only minimal governance.
Fantom Opera: A Refreshing
Fantom Opera is an advanced Proof-of-Stake tier 1 platform capable of providing fast, low cost and efficient scalable transactions. It works so fast that it can reach an average transaction completion of 1 second and thousands of transactions every second. To put their speed in perspective, Bitcoin and Ethereum will take several minutes just to validate transactions, while Fantom can effortlessly complete validations in just two seconds. With Fantom running inside the Tarot platform, users can be confident that all transactions within the ecosystem will be fast and secure, allowing them to grow their assets without any hassle.
Creditors and Borrowers
If one wants to be a lender, one can earn passive income minus the temporary loss by simply providing tokens to any of Tarot Protocol's lending pools. And to be a Borrower, one needs to deposit LP tokens into a lending pool before he can borrow additional tokens in the token pair. This mechanism will allow borrowers to use their LP tokens to earn even more LP tokens and allow them to start leveraged yield farming and increase their LP rewards.
Loan Pools equipped with Tarot Vaults will reinvest additional rewards to produce even more assets. In addition, there are two other things they will do with the rewards: the first is that the rewards are accrued on investors who deposit or leverage their LP token collateral in the loan pool. Second, rewards are periodically reinvested to buy more LP tokens on behalf of investors to increase their earning opportunities.
Tarot Supply Vaults are loan aggregators that help platform users earn income from various Tarot loan pools through automated strategies. This type of strategy is used to allow participants to obtain mixed bid rates with greater liquidity, giving them two benefits at the same time. Users can only make a single deposit into a Supply Vault to earn income from different Tarot loan pools.
TarotDAO is self-sustaining, community-governed, modular and flexible, which are the ideal traits of an efficient decentralized organization. It allows the community to submit ideas, give opinions and express support for proposals that can improve the Tarot platform. It also helps the community to leverage Tarot's capital efficiency through protocol treasury and reserve management strategies.
Tarot DAO implements a four-step process in governance that is comprised of a pending proposal, discussion, instant voting, and implementation, all of which will be discussed in detail below.
- Pending Proposal – The pending proposal is the first step in the Tarot governance process, where the community must submit proposals on the platform’s official Discord channel. While everyone in the Tarot community can submit proposals that can further improve the platform, they must follow a non-negotiable proposal template that can be found at this link.
- Discussion – The Discussion phase allows the community to be well versed on a proposal, weigh its pros and cons, and determine its true potential for the Tarot platform before it can enter the voting phase.
- Instant Voting – The Instant Voting Phase is where the community will vote on proposals that have passed the Discussion Phase and have been fully understood by the members. The community will vote on their preferred proposals, allocating the voting weight to their 'xTAROT', which is short for 'stake Tarots'. If more than half of xTAROT's voting weight flags "YES" on a project, it will finally move to the implementation phase.
- Implementation – While all projects that have reached this stage will mean they have gone through full community review and approval, it is still up to the Tarot team when exactly to implement them. The team may decide to wait for the right moment to launch some projects (even with their great potential) for various reasons, which include resources, time, technology and other critical aspects.
Current and potential users are reminded that the Tarot Protocol remains an experimental platform, which means it brings great opportunities and great risks at the same time. And, as with any investment, users should only invest the amounts they are willing to lose and should be aware that they could lose all tokens deposited on this platform.
We're not saying that Tarot Protocol should be avoided, but as it's still in an experimental phase, it's currently for investors with decent war chests who are willing to lose a portion of their investments to gain new opportunities. Other risks users should be aware of include glitches in the Tarot interface, deposit and withdrawal delays, and inaccurate display of information.
The TAROT Token is the platform's governance token and allows holders to participate in decisions that can directly affect the distribution of protocol fees, fee rates, interest rate model and other critical areas. It has a maximum supply of 100 million tokens, and aside from its governance utility, TAROT has no value outside of the Tarot Protocol.
Tarot Farming Rewards
Tarot Farming Rewards is a four-year liquidity program created to help participants unlock the full potential of the TAROT Token. It will distribute 59% of the total token supply to the platform’s three main participants: borrowers, stakeholders and leveraged income farmers. This is an essential part of the Tarot Protocol because a fair and safe farming rewards program is critical to the platform's long-term success.
How to earn Tarot farming rewards?
There are two ways to earn Tarot rewards:
- Initiating a leverage or loan transaction in an agricultural pool.
- When borrowers open a new loan or leveraged position in a recognized farm pool within the Tarot platform.
Where to buy TAROT token?
TAROT cryptocurrency can be traded on the following exchange:
Price Forecast for Cryptocurrency Tarot (TAROT)
Tarot price is predicted to reach a maximum level of $0.1479 throughout 2022. As early as 2023 according to our crypto price prediction index, in 2023, Tarot (TAROT) price may reach a maximum level of $0.2846 , with the average trading price of $0.2116.
In 2025 according to our crypto price prediction index, TAROT is expected to cross an average price level of $0.3431. The minimum expected value of the Tarot price at the end of the current year should be $0.3168. Furthermore, TAROT can reach a maximum price level of $0.3497.
Tarot Protocol has efficiently shuffled its deck of DeFi services to provide a safe way for users to win, even with its current experimental status. We can say it has great potential, but investors with a low risk appetite may want to look to other established DeFi platforms with proven mechanisms and decent track records to minimize the danger of losing their assets.