What Is Tarot (TAROT)?

Tarot aims to be a decentralized lending protocol of the Fantom Opera network, a protocol where the users can act as lenders or borrowers in various isolated lending pools. Fantom Opera refers to a fully decentralized and permissionless blockchain network designed with smart contract integration for higher levels of scalability and security. The lenders of the network have the ability to supply tokens to a Tarot lending pool in order to seek to earn passive yield. In addition, the borrowers can borrow additional tokens by putting LP (liquidity provider) tokens in any lending pool. This process seeks to result in enabling leveraged yield farming with more lucrative LP rewards. Crypto lending is a type of DeFi (decentralized finance) for allowing users to lend their cryptocurrencies to numerous borrowers.

According to the website, the Tarot Protocol functions as a set of smart contracts to enable noncustodial and permissionless decentralized and leveraged yield farming markets. Smart contracts are just like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on the blockchain.

Moreover, Tarot’s collateralization model aims to keep the value of an LP token to be always backed 50-50 by the underlying tokens. The platform seeks to ensure that the amount of necessary collateral for borrowing is adequately determined to prevent borrowers from borrowing more than the value of their collateral. At the same time, this collateralization model also aims to determine the needed collateral for a loan. This method of safety margin and liquidation incentive parameters seeks to allow for the availability of enough collateral for continuous support to the Tarot ecosystem.

The Tarot ecosystem seeks to consist of two primary tokens:

• TAROT: The TAROT token is the limited supply governance token of the platform fashioned to provide governance rights to token holders.

• xTAROT: xTAROT is the staked TAROT, and it is designed to authorize protocol governance via Tarot DAO. DAO (decentralized autonomous organization) is a community-driven system without any central authority. Additionally, TAROT holders can take part in protocol governance by staking TAROT in return for xTAROT.

History of Tarot (TAROT)

Tarot is a community-led project with a maximum total supply of 100,000,000 TAROTs in which 2,500,000 TAROTs have been utilized for initial liquidity.