Feedback to Questions Related to veCARROT

We would like to answer some questions raised by the Rabbit Finance Community regarding CARROT and veCARROT, to help users understand the tokenomics and gameplay of CARROT and veCARROT.

A1. CARROT in the Treasury of the Boardroom will be used only for token issuance after REBASE. At the same time, all the related contracts including the Boardroom are time-locked to provide reassurance.

A2. First, veCARROT is a kind of bond asset, users can mint CARROT to veCARROT to obtain arbitrage profit, meanwhile, veCARROT will not be burned when deflation happens. In addition, releasing veCARROT to CARROT is designed in a slow conversion method, when there is veCARROT in circulation and the Treasury Balance is insufficient to support its exchange release, 10% of the additional issuance of CARROT will be allocated to the Treasury Balance. It’s a release model designed by the team to reduce selling pressure and stabilize CARROT price, so as to protect the interests of users, which is a very important part to keep the entire Boardroom running smoothly. Given that some users miss arbitrage opportunities due to insufficient Treasury Balance and conversion failure, the Rabbit Finance team is considering launch of VeCARROT/BNB farming pool at an appropriate time to make the bond asset circulated. Please follow the official announcement for the specific launch time.

A3. The first thing to understand is that CARROT in circulation and in the Boardroom are both inflated and deflated at the same time after REBASE with a proportionately burnt amount, thus the remaining quantity can always guarantee the normal running without token exhaustion.

A4. After CARROT was minted into veCARROT, the original CARROT returned to the Treasury of Boardroom, which was designed to ensure sufficient supply reserve of CARROT. As mentioned above,all the related contracts including the Boardroom are time-locked to provide reassurance.

A5. In response to this question, the Rabbit Finance team will add striking notice and explanation links on the Boardroom page, especially on the veCARROT mint page , so as to guide users to operate in line with their own investment strategy. On the other hand, the team will conduct veCARROT introduction courses and AMA activities within the community, so that users can understand and clarify the use case of veCARROT.

A6. Rabbit Finance has completed its functional positioning since V2 launch , transforming from a leveraged lending and borrowing platform to a lending-based leveraged trading protocol, clarifying the relationship between RABBIT and CARROT at the same time that CARROT is the first project of RABBIT LAB, which will gradually separate from Rabbit and become independent project in the future.

For more progress and news, please join Rabbit Finance Community‌.‌

2021/09/14

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