Mastering the New $CARROT Incentives Program
The new $CARROT Incentives Program marks a major step forward for Puffer governance and coordination across the ecosystem, from Liquid Restaking and UniFi Based Rollups to the new vlPUFFER governance model.
More details about vlPUFFER and the updated $CARROT incentives program can be foundin this article.
$CARROT is Puffer’s tokenized reward point, an ERC-20 token that serves as one of the main incentives for participation in the Puffer ecosystem.
Let’s dive into how to earn, use, and maximize your $CARROT rewards. 👇
🪄 How to Earn $CARROT
You earn $CARROT by interacting with Puffer products and participating in DeFi campaigns.
Examples:
- Supplying liquidity in pufETH vaults or DeFi farms
- Staking $PUFFER
- Participating in UniFi vaults
- Bridging pufETH to eligible L2s such as BNB Chain or Base
- Staking or locking $CARROT itself for boosted multipliers
Every epoch, vlPUFFER holders vote on the weight of each gauge, deciding which activities receive more $CARROT rewards.
💎 How to Claim $CARROT
You can claim your rewards in the Puffer App → Portfolio →Claims tab.
There, you’ll see your Earned CARROTs and the option to Claim them.
Initially, you’ll receive mtwCARROT. After a 30-day cliff period, you can claim $CARROT to your wallet, which you can then:
1. Hold
2. Stake for boosted yields
3. Swap on the market
Let’s look at each of these options in detail.
👀 What to do with $CARROT
Once you have $CARROT, you have three main options:
Option 1: Claim $PUFFER (after 180 days)
You can convert your $CARROT into $PUFFER at a fixed rate of 100 $CARROT : 55 $PUFFER.
This conversion has a 180-day withdrawal window and can be done directly through the Puffer App.
There’s also potential for arbitrage opportunities in the market between $CARROT and $PUFFER prices.
Option 2: Stake and Lock $CARROT for Boosted Rewards
Go to theStake page on the Puffer App and choose CARROT.
CARROT staking allows users to lock their CARROT tokens for a fixed period in exchange for a multiplier boost on rewards. The longer you stake, the bigger your share of emissions during each reward epoch.
Select your locking period to boost your reward multiplier:
Longer locks mean higher boosts, and more $CARROT in the next epoch. Rewards are distributed proportionally to your weight.
Option 3: Swap $CARROT Instantly
$CARROT remains a liquid asset, tradable on Uniswap.
You canswap $CARROT for USDCat any time, giving you flexibility between short-term liquidity and long-term governance rewards.
💪 The Bigger Picture
This new design connects every action in the Puffer ecosysteminto one feedback loop.
- vlPUFFER holders govern reward distribution.
- Users earn and stake $CARROT based on those votes.
- $CARROT holders can later convert to $PUFFER, aligning incentives and long-term participation.
Together, these mechanisms create a sustainable incentives loop that strengthens Puffer’s governance, liquidity, and community alignment.