KlimaDAO x Sushi Swap Carbon Offset Integration

Background

KlimaDAO’s vision is to embed the cost of carbon emissions into our economic system through the creation and governance of a carbon-backed currency, aligning incentives between investors, civil society, and organizations. KlimaDAO wants to change the narrative that blockchain technology is bad for the environment. Since launching in October 2021, KlimaDAO has brought over 18M tonnes of carbon on chain, and has established Polygon and Sushiswap as the official liquid blockchain carbon market where tokenized credits can be traded by anyone.

KlimaDAO chose Sushi Swap as the primary place for liquidity, thus making it a critical part of the on-chain carbon market. At time of writing KlimaDAO owns the first, fourth and fifth deepest pools of liquidity on Polygon.

Liquidity was the first step in revolutionizing the current Voluntary Carbon Market. Since then, KlimaDAO has launched tooling that allows anyone to offset their carbon emissions, unlocking the ability for any individual or entity to play a part in the future of the carbon market.

Key Product Launches

Klima Infinity enables organizations and individuals to compound their positive environmental impact, and to offset their carbon emissions continuously and transparently. Klima Infinity aims to accelerate momentum toward – and beyond – a carbon-neutral world. Love Letters allows anyone to leave a message on the blockchain for the planet. As they leave this message they can offset themselves or on behalf of others.

Decentralized Exchanges and Their Impact

Decentralized exchange (DEX) protocols are the most commonly used application in DeFi and amongst the largest consumers of gas on the blockchain. This makes DEXs a critical point of leverage for combatting carbon emissions on the blockchain. In addition to our partnership with Polygon to offset their emissions, we have on-boarded over 30 different organizations to Klima Infinity and offset more than 150k tonnes of carbon emissions since launch in February. We believe that by partnering with DEXs to help offset their carbon emissions, we can change the narrative and truly move the needle on climate change.

Proposal Summary

Form a close partnership with Sushi Swap to implement automated offsetting into each DEX transaction on Polygon. The DAO developers will work directly with the Sushi Swap team to tie the DEX into current Klima Infinity tooling infrastructure to allow for users or protocols to have a one-click solution to offset their utilization of the platform.

41 Likes

I am fully in support of this proposal.

Environmentally concious users should have the option to cover their swap footprints, and projects built on top of Sushi pools should be able to offer green alternatives.

Furthermore, Sushi can be seen as a social leader in the space, paving the way for others. The cost for Sushi would be negligible developer coordination overhead and will benefit its user base and the Polygon ecosystem as a whole disproportionally.

It’s really a no brainer.

15 Likes

With shared resources and if it is piloted on Polygon I think this is a good integration for Sushi since it would be a first mover in changing the narrative with Web3 and climate. Its even cheaper to become climate positive with on-chain prices.

10 Likes

I support in principle. This will enhance the public image for SUSHIswap as a responsible member of the ecosystem, both physical and digital. Who knows, maybe it will even help prevent the impending environmental calamity from global warming.

The proposal would benefit from more detail as to exactly what is being requested, planned or intended. Terms such as “close partnership” and “will work directly with” are vague. Is funding being requested? Or just use of the SUSHIswap platform?

5 Likes

No funding is required, it would just be shared development resources. The primary request is to integrate offsetting option into the platform for users.

11 Likes

Without a doubt, I’m in full support of this proposal.

With Polygon going carbon-negative and becoming the first blockchain to be climate positive, SushiSwap, being one of the key DEXs in the market, can be the first DEX to be climate positive and make each and every transaction in the Polygon network, a green one!

10 Likes

Great to see this innovation!

offsetting optionality would be amazing to have on Sushi.

7 Likes

That would be a fantastic sign of sustainable leadership and innovation by Sushi.

6 Likes

Great idea, hope this gets through👍

6 Likes

Brilliant proposal. Hope this happens soon!

5 Likes

Great proposal. One amazing opportunity for Sushi to get on the green web3 narrative lead by polygon

6 Likes

Great, This is one small step for man, one giant leap for mankind.

6 Likes

This is a fantastic proposal and it would really set sushi apart. I hope very much this is implemented.

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Sushi can take a leadership position here and be the first AMM to operate in a carbon neutral way. Let’s make this happen!

6 Likes

One of the main criticisms of blockchain, keeping it from gaining wide acceptance, is how terrible it is for the environment. Obviously, those doing Proof of Stake are in a much better position with regards to environmental impact, but the criticism is still valid. Now that Polygon has committed to be carbon negative, I think every other piece in the defi world should do the same to try and get ahead of this environmental impact criticism.

For sushiswap to do this makes a lot of sense.

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With so many people about to uncover the power of blockchain, we need clever initiatives like this to reverse the rhetoric of “blockchain is bad”

Would be amazing if SushiSwap supported this!

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This would be fantastic! A real breakthrough.

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I hope for a future where the finance system will be carbon negative. 100% for this proposal

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Hi @Archimedes and Klima team, grateful for your continued development of the on-chain carbon credit market and focus on environmental sustainability as a DAO.

Seems like the proposal is to embed Klima Infinity into the final transaction. I am right in that understanding?

How does this benefit Sushi besides contributing towards climate forward initiatives? Would a direct purchase of carbon credits by Sushi be more effective and cleaner?

I am wary of adding necessary UI additions which take away from the core product.

It feels like when you are at the checkout and it asks “Would you like to add $5 to St.Jude’s Children Hospital?” 90% of customers choose “No”…

3 Likes

Great question fig!

Yea KI is one avenue. Getting Sushi to offset historical emissions as an organization. But we could also explore adding a purpose built module to the txn flow. That is like an optional toggle, like the “expert” mode toggle. that simply enables or disables offsetting.

We could incorporate the Love Letter messages into it as well. So people could add a nice note with their trades. For networks where Sushi is deployed on PoS the cost for doing so, is trivially low, we are talking about a few cents per txn.

For PoW this could be a bit more but also achievable. The depth of liquidity is far beyond what would be required to offset those emissions.

I wouldnt view it as an onchain donation either. More like an opt-in option for users that seek out green options to do their small collective part.

The entire premise is to make it a positive, encouraging experience, rather than a forced one.

11 Likes