6️⃣Carrot Enables New Financial Instruments

Tracer and the Carrot token architecture’s core strength increase liquidity, traceability, and scalability of the CDR economy. This architecture provides a foundation for new layers of value creation. These include recently developed decentralized, noncustodial, and transparent financial instruments such as liquidity pools and lending mechanisms. Online marketplaces and dashboards support the efficient trading of Carrot tokens.

Dedicated tools will support buyers with e-commerce type solutions for the purchase of Carrots. Such tools will help them understand the market, trends and select projects with the qualities they value. Specific dashboards will support them with custody, management, and tracking of portfolios or baskets of assets. Finally, dedicated tools will support the retirement of Carrots to selected ledgers and provide external proof of impact for both corporations and individuals.

Exchanges and DeFi liquidity pools will support the trading of stable tokens to either Carrots from specific projects or more likely to grades of Carrots.

A key innovation of the Carrot model is the clear separation between ex-ante (Forward offtake, or future) and ex-post (Spot purchasing or actual) carbon storage, as two distinct tokens: Seeds and Carrots. This ensures that only verified carbon storage (Carrots) can be retired. Just like Carrots, Seeds will require external tools for custody, management, and trading.