Solid World: DeFi Platform For Climate

Tasks

Solid World is a DeFi platform that allows climate project developers to access working capital and carbon offsets buyers to access quality supply at market rates.

Current problems of the voluntary carbon market:

• Carbon projects face challenges accessing liquidity, which prevents them from scaling up their operations.
• There is a lack of high-quality supply of certified carbon credits.
• The carbon market is fragmented and opaque, which makes it difficult for suppliers to meet demand and find the right organizations to finance them.
• The carbon market is expected to face a supply crunch by 2030. However, the market is not scaling fast enough to meet this demand.

Solutions:

• Solid World enables carbon projects to sell forward credits at a discount, bridging the funding gap and enabling them to thrive.
• Solid World’s CRISP framework provides a standardized way to assess the risks of carbon projects, empowering all industry stakeholders to make informed decisions.
• Solid World connects carbon projects with potential buyers.

Offer for Suppliers

Solid World allows carbon project suppliers to access working capital by forward-selling their carbon credits.

There are several benefits to using Solid World for early financing:

• Suppliers can access working capital even before their carbon credits are certified during the planting or registration phase.
• Suppliers by themselves make decisions of selling carbon credits in the desired quantities as long as the price is attractive.
• DeFi platform reduces or eliminates the need for additional administrative inquiries by providing comprehensive project information and a transparent evaluation process.
• DeFi platform attracts more investors because of the ability to buy and sell carbon credits in a transparent and regulated way.

To access working capital, suppliers need to follow these steps:

1. Submit their carbon project to Solid World’s team.
2. Go through the CRISP scoring process and Curation Council approval.
3. Onboard and tokenize their carbon project. Each token represents a promise to deliver one carbon credit in the future.
4. Start stream selling their forward credits to Solid World’s pools.

Offer for Distributors

Benefits:

• High-quality inventory: Solid World only lists carbon credits that have undergone a rigorous evaluation process. This ensures that the credits meet the highest standards of quality and authenticity.
• Transparent pricing: Distributors can easily calculate the deal price before making a purchase. This transparency enables distributors to negotiate contracts and pricing with confidence.
• Stream buying: Distributors can purchase carbon credits in the exact quantities required. This gives them greater control and flexibility in meeting the specific demands of their clients.
• Publicly available CRISP reports and contracts: All CRISP reports and underlying signed contracts for the listed projects are made publicly available.
• Partnership opportunities: the company welcomes collaborations with distributors.

Project buying process:

1. Go to the project page on the Solid World platform.
2. Connect your wallet.
3. Select the project tokens you want to buy.
4. Pay for the tokens using the CRISP-scored pool token.

Solid World allows buyers of forward carbon credits to take their credits off-chain. To initiate this process, buyers need to contact Solid World and request to take their credits off-chain. Solid World will then burn the project tokens and notify the supplier of the contract transfer. The supplier will then deliver the carbon credits to the buyer off-chain.

CRISP-M token

The first CRISP Scored pool for Mangrove (CRISP-M) was launched in May, 2023.

CRISP-M pool parameters:

• The project involves Verra Mangrove Restoration forwards that are valid for up to 5 years from the date of issuance.
• The project must be registered with VCS Program. If the project developers have a demonstrable track record of successful initiatives,  planting operations may be enough to start.
• Over 50% of the benefits from the project must be directed towards local communities.
• Only credits that achieve an A to AAA CRISP score will be considered.

Solid World For Liquidity Providers

To get and stake CRISP-M LP tokens, you are lending CRISP-M and USDC tokens to the Gamma Protocol. In return, you earn fees from the transactions. 

At the time of writing this post, the total value stacked in the CRISP-M Liquidity Pool is 1,075,817.31 USD (52.12% USDC, 47.88% CRISP-M). To get one LP Token you need to deposit 15.90 USDC or 0.47 CRISP-M. The variable annual percentage rate (APR) of LP Tokens is 14.11%, which is made up of 10.00% USDC and 4.11% CRISP-M.

The matchmaking for CRISP-M in the Liquidity Pool happens within a specific price range, initially set between 18.85 USD and 48.05 USD per CRISP-M. At the time of writing CRISP-M price is 30.69 USD.

Real-time information can be found on the Dune Dashboard   

How Solid World Is Mitigating Stacking Risks:

• Use an independent verification standard VCS with demonstrated demand
• Mitigate delivery risk with the CRISP Framework. Sets caps on how much supply is allowed to be forward sold via Solid World.
• Provide underlying legal contracts with replacement guarantees. These include contingencies in shortfalls and moving the shortfall risks to suppliers
• Curation Council for Consensus-based Curation. The top 7 Liquidity Providers, including many project developers, can veto poor-quality projects.
• Security audits of smart contracts. Smart contracts and audits are publicly available on GitHub
• Use third-party market mechanisms. Liquidity is handled via Gamma Protocol on Uniswap V3.

How to Participate in Solid World Liquidity Pool:

1. Connect a wallet to Solid World app
2. Deposit CRISP-M or USDC tokens into the Gamma Liquidity Pool, get LP tokens 
3. Unlock Staking by Submitting KYC
4. Stake Your LP Tokens to Get Rewards. The rewards come from two sources: forward carbon credits through time appreciation and USDC through direct incentives by Solid World.