Carrot Liquidity
Low risk — simple stablecoin yield aggregation with audited code and zero fees, but inherited lending protocol risks and new track record require attention.
Top Risks
1
Automated yield routing across multiple Solana lending platforms (Kamino, MarginFi, etc.) means depositors inherit the smart contract risks of every underlying protocol
2
CRT yield-bearing token exchange rate depends on the aggregate performance of underlying lending strategies; a loss in any underlying protocol affects all CRT holders
3
Relatively new protocol with limited track record through market stress events, having launched in 2025
4
No fee revenue currently — protocol charges zero management fees beyond a 0.1% redemption fee, raising questions about long-term sustainability
Risk Breakdown
Frequently Asked Questions
Is Carrot Liquidity safe to use?
Carrot Liquidity receives a B risk grade (24/100) from Hindenrank, where lower scores indicate lower risk. Low risk — simple stablecoin yield aggregation with audited code and zero fees, but inherited lending protocol risks and new track record require attention. Carrot Liquidity is a Solana yield aggregator that automatically routes your stablecoin deposits (USDC, USDT, PYUSD) across lending platforms like Kamino and MarginFi to earn the best available yield. You receive CRT tokens that appreciate in value as yields accumulate. The protocol charges no management fees (only a 0.1% redemption fee) and has been audited by Sec3 and MadShield.
What are the main risks of using Carrot Liquidity?
The key risks identified for Carrot Liquidity are: (1) Inherited protocol risks: Your stablecoins are spread across multiple Solana lending platforms. If any one of those platforms gets hacked or runs into trouble, your CRT tokens lose value — even though you only interact with Carrot. (2) New protocol: Carrot is a relatively new protocol that has not been tested through a major market downturn or Solana ecosystem stress event. Newer protocols carry more uncertainty about edge-case behavior. (3) No revenue model: Carrot currently charges zero fees, which is great for users but raises questions about how the protocol sustains development and operations long-term.
What is Carrot Liquidity's risk score breakdown?
Carrot Liquidity scores 24/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 3/20, Oracle Surface: 0/10, Documentation Gaps: 2/10, Track Record: 4/15, Scale Exposure: 3/10, Regulatory Risk: 4/10, Vitality Risk: 5/10. The highest risk area is Vitality Risk at 5/10.
How does Carrot Liquidity compare to other Yield protocols?
Among 112 rated Yield protocols on Hindenrank, Carrot Liquidity ranks #5 by safety (lowest risk score = safest). Its 24/100 risk score and B grade place it among the safer Yield protocols.
Has Carrot Liquidity ever been hacked or exploited?
Carrot Liquidity scores 4/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.
Last scanned 2026-02-21