What happened to Carrot DeFi and why is it shutting down?

Carrot, a Solana-based DeFi yield protocol, is shutting down after losing most of its funds due to exposure to the Drift Protocol exploit. The team said the losses were too severe for the platform to continue operating.

How much did Carrot’s total value locked (TVL) drop?

Carrot’s TVL fell by about 93%, dropping from $28 million to roughly $1.99 million. This sharp decline effectively wiped out the protocol’s ability to sustain its operations.

What was the Drift Protocol exploit and how did it affect Carrot?

The Drift exploit was a $285 million hack involving a coordinated attack that gained admin control and drained funds. Because Carrot relied on Drift’s infrastructure for yield generation, the losses directly impacted its liquidity.

What should Carrot users do now?

Users have until May 14 to withdraw their remaining funds from the platform. After that, Carrot will begin deleveraging positions and redistributing any available assets.

Are user funds completely lost on Carrot?

Not all funds are necessarily lost, but recovery depends on remaining liquidity and ongoing processes. The protocol said deposited funds still belong to users, but leverage will be reduced to free up liquidity.

What does “DeFi contagion” mean in this context?

DeFi contagion refers to losses spreading across connected protocols due to shared infrastructure or exposure. In this case, multiple projects linked to Drift, including Carrot, were affected by the same exploit.

Which other projects were impacted by the Drift exploit?

Other affected platforms include Gauntlet, PrimeFi, and Elemental DeFi. This highlights how interconnected DeFi systems can amplify risks when one major protocol fails.

How big was crypto hacking activity in April 2026?

Around $630 million in digital assets were stolen across 25 incidents in April. The Drift and Kelp exploits alone accounted for more than 90% of those losses.

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Carrot DeFi shuts after Drift hack contagion

Written by Heidi Cuthbert Published May 1, 2026, 12:00 AM

Solana-based DeFi protocol Carrot is shutting down after suffering severe losses linked to the $285 million Drift Protocol exploit.

The protocol’s total value locked plunged 93% from $28 million to $1.99 million, leaving it financially unable to continue operations.

Carrot said users must withdraw funds by May 14 as it begins unwinding leveraged positions and preparing asset distributions.

“We are setting May 14th as the deadline to withdraw any remaining funds from Boost, Turbo, and CRT before we will then begin to deleverage the system,”

The team said.

The Drift exploit, which occurred on April 1, involved a coordinated attack that gave hackers admin control and drained more than half of the protocol’s TVL.

The fallout has spread across multiple connected projects, including Gauntlet, PrimeFi and Elemental DeFi, highlighting systemic risk within interconnected DeFi ecosystems.

April recorded around $630 million in crypto losses across 25 incidents, with the Drift and Kelp exploits accounting for over 90% of stolen funds.

At the time of reporting, Solana price was $83.93.

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Carrot DeFi shuts after Drift hack contagion

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