Overview
Tarot provides leveraged yield farming on Fantom, based on the Impermax lending model. The protocol allows lenders to supply single assets and earn interest, while borrowers can leverage their LP positions for amplified yield. This two-sided market creates capital-efficient yield opportunities. Tarot was a core component of Fantom's DeFi ecosystem during its 2021-2022 peak, but activity has collapsed as Fantom's DeFi TVL shrank dramatically.
Smart Contracts
Tarot's contracts implement the Impermax lending model — isolated lending pairs where each LP token has its own borrowing market. The architecture isolates risk per pool and handles liquidation of under-collateralized leveraged positions. The codebase is a fork/adaptation of Impermax, which is well-understood but not heavily audited independently.
Security
Limited independent security audits. The Impermax model has been operational across multiple deployments, providing some track record. However, leveraged yield farming introduces liquidation cascade risks during volatile markets. Fantom's thin liquidity amplifies these risks — liquidators may not have sufficient liquidity to close underwater positions efficiently.
Liquidity
Severely reduced liquidity. Fantom's DeFi TVL has contracted from peak levels, directly impacting Tarot's available deposits and borrowing demand. Most pools have thin liquidity, making both lending yields minimal and leveraged positions risky due to potential liquidation with slippage.
Adoption
Adoption peaked during Fantom's DeFi heyday and has declined steadily. The remaining user base is small — mostly Fantom DeFi loyalists. No significant growth catalysts are visible unless Fantom (now Sonic) achieves a DeFi resurgence.
Tokenomics
TAROT token provides governance and can be staked for protocol revenue sharing. With minimal protocol activity, fee generation is negligible, making the staking yield insignificant. The token's value depends on Fantom/Sonic ecosystem recovery.
Risk Factors
- Fantom DeFi ecosystem has contracted dramatically
- Leveraged yield farming carries liquidation cascade risks
- Thin liquidity makes efficient liquidations difficult
- Fork-based codebase without comprehensive independent audits
Conclusion
Tarot is a well-designed leveraged yield protocol trapped on a declining chain. The 2.3 score reflects competent DeFi engineering undermined by ecosystem-level headwinds. The protocol's fate is tied to Fantom/Sonic's ability to rebuild its DeFi ecosystem.