Tarot
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Introduction
User Guide
Deployed Contracts
Addresses
FAQ
Risks
Tarot Protocol
Protocol Overview
Lending Pools
Collateralization Model
Liquidation
Tarot Vaults
Interest Rate Model
Price Oracle
Fees
Supply Vaults
Supply Vaults
tTokens
Spirit Boosted
tinSPIRIT
BoostMaxx
BoostMaxx
Tokenomics
The TAROT Token
xTAROT
Governance
Tokenomics
Emissions
Farming
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Tarot Vaults
Many popular DEXs offer additional rewards to incentivize LPs to provide liquidity for specific token pairs. Liquidity providers can put their LP tokens to work in a farming or staking pool to earn these additional rewards beyond transaction fees.
Tarot handles this process automatically with Tarot Vaults. Any lending pool with a Tarot Vault enabled will earn and reinvest these rewards. Rewards are accrued to anyone who deposits or leverages their collateral (LP tokens) in the lending pool, and periodically reinvested to buy more LP tokens on their behalf.

Mechanics

Whenever a borrower deposits LP tokens in a lending pool which supports Tarot Vaults, the LP tokens are automatically staked in the underlying staking pool. Later, when the borrower deleverages or withdraws their LP tokens, it is automatically withdrawn from the underlying staking pool. This way, the borrower automatically earns additional LP tokens.
Reinvestment is enabled by a permissionless bounty system for Tarot Vaults. Anyone can initiate the reinvestment process for the pending reward of a lending pool. In exchange, they keep a small percentage of the reward as a reinvestment bounty (currently 1%).
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Last modified 7mo ago
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