# Carrot

## What is Carrot Boost?

{% embed url="<https://drive.google.com/file/d/1Wx04_C1o80Sc7xhjfY8fipiuClpsK4Le/view?usp=drive_link>" %}

Carrot Boost is a lending and leverage protocol on Solana that enables users to amplify returns on yield-bearing assets through isolated lending markets. The platform provides up to 3.4x leverage on premium tokens, allowing sophisticated users to multiply their yield exposure while maintaining flexible position management.

### Key Features

**Isolated Lending Markets** - Each collateral type operates independently to prevent contagion

**Flexible Leverage** - Adjust positions dynamically up to maximum leverage limits

**Real-Time Monitoring** - Track health factors, liquidation prices, and performance metrics

**Competitive Rates** - Market-driven borrow rates with transparent fee structures

***

## FLP's Role on Carrot Boost

FLP.1 tokens from Flash Trade serve as collateral on Carrot Boost, enabling users to leverage their liquidity provider positions. This integration creates opportunities for Flash Trade users to amplify returns through borrowed capital while continuing to earn perpetual trading fees.

### Integration Benefits

**Yield Amplification** - Multiply FLP returns through leverage up to 3.4x

**Continued Fee Generation** - Maintain Flash Trade's 70% trading fee share while leveraged

**Capital Efficiency** - Access borrowed capital without selling FLP positions

**Dual Rewards** - Earn FAF while amplifying position size

***

<details>

<summary>Getting Started Guide</summary>

### Prerequisites

Before leveraging FLP on Carrot Boost:

* Hold FLP.1 tokens from Flash Trade
* Connected Solana wallet (Phantom, Backpack, Solflare)
* Sufficient SOL for transaction fees
* Understanding of leverage mechanics and liquidation risks

### Step-by-Step Implementation

#### Initial Setup

1. Visit [boost.deficarrot.com](https://boost.deficarrot.com/boost/tokens/zsTdjXTj3DYS4cQBgpXmyYEAsmNNrT3w1XVmoU4YLcL)
2. Connect your Solana wallet
3. Navigate to FLP.1 market
4. Review current market conditions:
   * FLP.1 price
   * Available liquidity
   * Borrow rate
   * Max APY

#### Position Configuration

1. Click "Create Position"
2. Enter FLP.1 collateral amount
3. Set leverage ratio (recommended 2-2.5x for first position)
4. Review position details:
   * Liquidation price
   * Health factor (target 30%+ for safety)
   * Net APY projection
5. Click "Confirm Deposit"
6. Approve transaction in wallet

#### Ongoing Management

**Daily Monitoring**:

* Check health factor status
* Monitor FLP price movements
* Track Flash Trade volume trends
* Review net APY vs borrow costs

**Position Adjustments**:

* Add collateral if health factor drops below 25%
* Reduce leverage during high volatility
* Close positions if market conditions deteriorate
* Take profits during favorable periods

</details>

***

## Dual Rewards System

{% tabs %}
{% tab title="FAF Emissions Boost" %}
Flash Trade incentivizes FLP.1 leverage on Carrot Boost by distributing FAF tokens directly to borrowers. These rewards appear as "Emissions APY Boost" and significantly reduce your net borrowing costs.

#### Emissions APY Boost

**Automatic Accrual**: FAF rewards accumulate automatically based on your borrowed amount and time held.

{% code title="Net Borrowing Cost Calculation:" overflow="wrap" fullWidth="true" %}

```
Borrow APY + FAF Reward APY = Net Borrow Cost
```

{% endcode %}

**Direct Claims**: Claim accumulated FAF rewards directly on Carrot Boost through the "Rewards" tab.

#### Claiming FAF Rewards

**Step 1**: Navigate to your position details\
**Step 2**: Click "Rewards" tab\
**Step 3**: View "Unclaimed FAF Rewards!" with accumulated amount\
**Step 4**: Click "Claim FAF" button\
**Step 5**: FAF tokens deposited directly to your wallet

Here is a link to [Carrot Boost](https://boost.deficarrot.com/boost/tokens/zsTdjXTj3DYS4cQBgpXmyYEAsmNNrT3w1XVmoU4YLcL).
{% endtab %}

{% tab title="Staking FAF Emissions" %}

### Staking FAF Emissions

#### Maximize Your Rewards

Claimed FAF tokens can be staked on Flash Trade to unlock additional benefits and revenue sharing across the protocol.

<details>

<summary><strong>Core Benefits</strong>:</summary>

**VIP Level Access**

* Staking FAF increases your VIP tier
* Higher tiers = better trading fee discounts
* Enhanced referral rebate percentages
* Yield boosts on FLP positions
* Spot limit order discounts (coming soon)

**50% Revenue Share**

* Staked FAF earns 50% of Flash Trade protocol revenues
* Distributed proportionally to all FAF stakers
* Additional income stream beyond Carrot leverage returns
* Auto-compounds your Flash Trade ecosystem exposure

**Voltage Points (VP)**

* Staked FAF helps earn VP multipliers
* Higher VP rankings = better FAF reward distribution at epoch end
* Improved position in leaderboard for additional rewards
* Compounds benefits across the Flash ecosystem

**Governance Rights**

* Participate in Flash Trade's Futarchy-based DAO
* Vote on protocol decisions using MetaDAO
* Influence platform direction and development

</details>

#### Staking Process

1. Visit [Flash Trade Token Page](https://flash.trade/token)
2. Connect your wallet
3. Navigate to Token tab
4. Enter FAF amount to stake
5. Confirm transaction
6. Begin earning revenue share and VIP benefits
   {% endtab %}
   {% endtabs %}

***

## FLP Leverage Mechanics

### How Leverage Works

When you leverage FLP.1 on Carrot Boost, you deposit FLP as collateral to borrow USDC, which the protocol uses to purchase additional FLP tokens, creating an amplified position.

{% columns %}
{% column %}

#### The Process

1. Deposit FLP.1 as collateral
2. Borrow USDC against your FLP holdings
3. Protocol converts borrowed USDC to additional FLP
4. Enhanced yield generation from larger effective position
   {% endcolumn %}

{% column %}

#### The Compounding Effect

* Original FLP earns trading fees from Flash Trade
* Borrowed funds purchase additional FLP tokens
* Additional FLP also earns trading fees
* Combined yield significantly exceeds base FLP returns
  {% endcolumn %}
  {% endcolumns %}

<h4 align="center">Current Parameters</h4>

<p align="center"><strong>Maximum Leverage</strong>: 3.4x for FLP.1<br><strong>Borrow Rate</strong>: 14.68% APY<br><strong>Max Achievable APY</strong>: 78.8%<br><strong>Liquidation Penalty</strong>: 7%</p>

## Yield Calculation Example

With 3.4x leverage on FLP earning 35% base APY and 14.68% borrow costs:

```
Amplified APY = Base APY + (Leverage - 1) × (Base APY - Borrow Rate)
Amplified APY = 35% + (3.4 - 1) × (35% - 14.68%)
Amplified APY = 35% + 48.77% = 83.77%
```

Here is a link to the [Carrot Boost platform](https://boost.deficarrot.com/boost/tokens/zsTdjXTj3DYS4cQBgpXmyYEAsmNNrT3w1XVmoU4YLcL).

***

## Position Management

{% tabs %}
{% tab title="Opening a Position" %}
{% stepper %}
{% step %}

#### **Access Carrot Boost**

* Navigate to boost.deficarrot.com
* Connect your Solana wallet
* Locate FLP.1 in available markets

{% endstep %}

{% step %}

#### **Review Market Data**

* Current FLP.1 price
* Available liquidity for borrowing
* Current borrow rate
* Maximum achievable APY

{% endstep %}

{% step %}

#### **Create Position**

* Click "Create Position"
* Enter FLP.1 collateral amount
* Adjust leverage slider (1x - 3.4x)
* Review liquidation price and health factor
  {% endstep %}

{% step %}

#### **Confirm**

* Verify position details
* Click "Confirm Deposit"
* Approve wallet transaction
* Position appears in Active Positions
  {% endstep %}
  {% endstepper %}
  {% endtab %}

{% tab title="Managing Positions" %}

#### Adding Collateral

Improve health factor and reduce liquidation risk:

1. Click "Manage Position"
2. Select "Deposit" tab
3. Choose FLP.1 amount to add
4. Review updated health factor
5. Confirm transaction

#### Adjusting Leverage

Modify risk exposure based on market conditions:

1. Click "Manage Position"
2. Select "Adjust Leverage" tab
3. Use slider to change leverage ratio
4. Review new liquidation price and APY
5. Confirm adjustment

**Effects of Leverage Changes**:

* **Increasing**: Higher APY potential, lower health factor, closer liquidation
* **Decreasing**: Lower APY, higher health factor, safer position

#### Withdrawing/Closing

Reduce or exit leveraged positions:

1. Click "Manage Position"
2. Select "Withdraw" tab
3. Choose amount or full closure
4. System shows impact on health factor
5. Confirm withdrawal
   {% endtab %}
   {% endtabs %}

***

{% hint style="warning" %}

## Important Notice

Leveraged yield trading involves significant risks including potential loss of principal through liquidation. This information is for educational purposes only and should not be considered financial advice. Always conduct thorough research and never risk more than you can afford to lose.
{% endhint %}

***

## Need Help?

For additional support or questions about using Carrot Boost:

* Visit the [Carrot Discord](https://discord.com/invite/defi-carrot) for community support
* Check [Carrot documentation](https://docs.deficarrot.com) for detailed guides

**Security Reminder**: Legitimate support will never ask for your private keys or recovery phrase. Only access Carrot Boost at boost.deficarrot.com to avoid phishing attempts.


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