{"id":594197,"date":"2026-04-30T14:35:30","date_gmt":"2026-04-30T18:35:30","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=594197"},"modified":"2026-04-30T14:35:30","modified_gmt":"2026-04-30T18:35:30","slug":"carrot-shuts-down-weeks-after-drift-exploit-slashed-protocol-value","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/carrot-shuts-down-weeks-after-drift-exploit-slashed-protocol-value\/","title":{"rendered":"Carrot shuts down weeks after Drift exploit slashed protocol value"},"content":{"rendered":"

Carrot has announced it will shut down operations following losses linked to the Drift Protocol exploit earlier this month.<\/span><\/p>\n

The team said the impact of the incident had proven “catastrophic” for its continued operations. Users have been given until <\/span>14 May<\/b> to withdraw funds from products including Boost, Turbo, and CRT before the system begins a full deleveraging process.<\/span><\/p>\n

According to the announcement, all leverage will be reduced to zero, freeing liquidity for token redemptions.<\/span><\/p>\n

From emergency measures to full shutdown<\/b><\/h2>\n

The shutdown follows weeks of attempts to stabilize the protocol after the initial fallout.<\/span><\/p>\n

On <\/span>2 April<\/b>, Carrot said the Drift exploit<\/a> had resulted in significant losses for users. Assuming no recovery of funds, CRT holders were facing an estimated <\/span>~50% loss<\/b>, forcing the protocol to adjust valuations and begin restructuring.<\/span><\/p>\n

At the time, the team moved to restrict withdrawals in certain markets, reduce leverage, and consolidate assets to support redemptions.<\/span><\/p>\n

TVL collapse underscores severity of fallout<\/b><\/h2>\n

Data from DefiLlama shows Carrot’s total value locked [TVL] dropped sharply following the Drift exploit.<\/span><\/p>\n

The protocol held roughly <\/span>$28 million in TVL on 1 Apri<\/b>l, the day of the incident. Since then, liquidity has steadily declined, falling to around <\/span>$2 million<\/b> as users withdrew funds and positions were unwound.<\/span><\/p>\n

\"Carrot<\/a>
Source: DefiLlama<\/figcaption><\/figure>\n

The drop highlights the scale of the impact, with more than <\/span>90%<\/b> of capital exiting the protocol in the weeks after the exploit.<\/span><\/p>\n

Not hacked, but still forced to close<\/b><\/h2>\n

Carrot was not directly exploited.<\/span><\/p>\n

Instead, its exposure to the Drift ecosystem created a second-order impact that ultimately proved unsustainable.<\/span><\/p>\n

This type of indirect failure\u2014where losses from one protocol spread to another\u2014has become an increasing concern in DeFi, particularly as platforms grow more interconnected.<\/span><\/p>\n

Users face withdrawals and uncertain recovery timeline<\/b><\/h2>\n

While users are being allowed to withdraw funds, the final outcome will depend in part on whether any assets are recovered from the Drift exploit.<\/span><\/p>\n

Carrot said any future recovery would be distributed to users based on previously recorded balances, though no timeline has been provided.<\/span><\/p>\n

The protocol added that it will remain active to manage this process even after winding down operations.<\/span><\/p>\n

\n

Final Summary<\/b><\/h2>\n
    \n
  • Carrot is shutting down after losses tied to the Drift exploit, with TVL falling from around $28m to $2m, and users given until 14 May to withdraw funds.<\/span><\/li>\n
  • The collapse highlights DeFi contagion risks, where protocols can fail due to exposure rather than direct exploits.<\/span><\/li>\n<\/ul>\n
    \n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Carrot is shutting down operations after losses tied to the Drift exploit, marking one of the clearest cases of DeFi contagion in April.<\/p>\n","protected":false},"author":76,"featured_media":594207,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[950,66,3,4,20],"tags":[],"class_list":["post-594197","post","type-post","status-publish","format-standard","has-post-thumbnail","category-defi","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"\nCarrot shuts down weeks after Drift exploit slashed protocol value - AMBCrypto<\/title>\n<meta name=\"description\" content=\"Carrot shuts down after its TVL drops over 90% following the Drift exploit, underscoring growing contagion risks in DeFi.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-image-preview:large\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ambcrypto.com\/carrot-shuts-down-weeks-after-drift-exploit-slashed-protocol-value\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Carrot shuts down weeks after Drift exploit slashed protocol value - 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