C3 User Guide
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C3 User Guide

Published Sat Apr 16 2022

How to Benefit from a Climate Positive Incentive System

Since inception, C3 has been aligned with KlimaDAO’s thesis that Web3 can be used to create public goods for the climate, by pooling the capital of the community and utilising innovative incentive mechanisms. Like KlimaDAO, C3 sees a future where blockchain technology has enabled the Voluntary Carbon Market to scale to its potential, fulfilling its role in our drive to prevent global warming exceeding critical tipping points. In order to achieve this future, C3 brings to regenerative finance what Curve brought to DeFi: incentive systems that permissionlessly drive liquidity to the best projects that need it for growth. C3’s incentive and voting system democratizes the process by which climate positive projects receive support, and in doing so, enables liquidity providers and voting users - whether individual or corporate - to benefit. In this article, we explain how to use C3 to participate in this new incentive system, in order to realise a climate positive future, and to unlock benefits along the way.

What is C3

C3 is an API-powered carbon bridge that aims to enable those who wish to participate in the on-chain carbon market to do so quickly, intuitively and permissionlessly. At launch, C3 introduced Universal Basic Offset (UBO) and Nature Based Offset (NBO), which are tokenized carbon credits that meet specific criteria.

As part of C3 incentives, the protocol is incentivising its users who participate in the following:

  • Bridging
  • Staking
  • Providing liquidity

Currently, incentives for providing liquidity are live. Incentives for bridging and staking will follow in the coming weeks.

Incentivised rewards are in the form of the protocol native governance tokens, denoted as C3. To keep yourself updated on C3 related announcements, hop on to their Discord and follow their Twitter.

In the following sections and using UBO as the main example in this guide, we will explain how to acquire C3 protocol assets and put them to work in the protocol in order to accrue C3 rewards.

Acquiring UBO, NBO and C3 from Sushiswap on Polygon.

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1) On the Polygon network, open Sushiswap

2) Input your desired tokens (refer to the visual above)

  • Search for Klima in the first field.
  • Search for UBO in the second field.

Note: Alternatively, access the pool here. To acquire UBO, ensure that you have some KLIMA in your wallet beforehand.

3) Enter the amount of KLIMA you wish to swap into UBO.

Note: As you will be providing liquidity later, it is important at this step that you swap such that you have equal amounts of UBO and KLIMA. For example, if you start with $200 worth of KLIMA, you might want to swap up to a maximum amount of UBO worth $100 so that you are able to provide liquidity of UBO/KLIMA worth $200. More on this in the next section.

4) Approve the swap

  • Click “Approve BentoBox” and “Approve Klima”
  • Approve both in your wallet by clicking “Sign”

Note: You will only have to do this the first time you swap for UBO. This is not the actual transaction for swapping.

5) Click on Swap and sign the transaction. Congratulations, you have successfully acquired some UBO!

If you would like to swap to NBO and C3 instead, click on the following embedded links.

  • NBO (KLIMA is needed before swapping)
  • C3 (FRAX is needed before swapping)

Take note that there are 2 versions of Sushiswap: Legacy, also known as V1, as well as the new and improved Trident. Depending on the tokens you wish to swap, Sushiswap will route you to the appropriate version of the app where the relevant liquidity pools are available.

UBO/KLIMA and NBO/KLIMA liquidity pools are deployed on Trident and you will need KLIMA in your wallet beforehand to acquire UBO and/or NBO.

C3/FRAX liquidity pool is deployed on Legacy Sushiswap and you will need FRAX stablecoins in your wallet in order to acquire C3 tokens.

Providing Liquidity

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Once you have acquired the appropriate tokens, it is time to add liquidity.

1) On Sushiswap, click on “Liquidity” → “Pools”

Note that for C3/FRAX and KLIMA/USDC liquidity, you will need to add it under “Legacy” → “Pool”

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2) Search for UBO/KLIMA (or other desired token pairs) and the appropriate pool will show up.

3) Click on the token pair and you will be brought to the “Add Liquidity” page.

Alternatively, you may also access your desired liquidity pool by clicking from this list:

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4) On the Add Liquidity page, click on “Deposit”.

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5) Enter the desired amount of UBO the appropriate amount of KLIMA will be automatically displayed.

Note: While providing liquidity, do keep in mind that users are required to supply an equal amount (in value terms) of both the tokens that they wish to add to the pool.

6) Approve to add liquidity:

  • Click “Approve UBO” and “Approve Klima”
  • Approve both in your wallet by clicking “Sign”

Note: You will only have to do this the first time you add liquidity for UBO and KLIMA. This is not the actual transaction for adding liquidity.

7) Click “Add Liquidity” and sign the transaction.

Once your liquidity share is added, you will receive the appropriate liquidity provider (LP) tokens in your wallet. These are like receipts representing the liquidity share that you have just added to the liquidity pool.

Now you are ready for the next step: staking your LP to earn C3 tokens!

Staking and Locking LP for C3 rewards

C3 incentivises its users to stake their liquidity provider (LP) tokens in exchange for its native C3 governance tokens as rewards. These tokens will enable users to vote on governance proposals, accrue fees and possess further utility as the protocol evolves.

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1) To stake an LP, head over to C3 staking page.

2) Select UBO/KLIMA token pair (or other corresponding token pair that you have just provided liquidity for on Sushiswap)

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3) On the LP staking page, enter the amount of owned LP that you wish to stake. You may click “Max” if you wish to stake the full share of the LP that you own.

4) Under “Days Locked”, enter the desired period length for locking.

Note: C3 requires a minimum locking period of 1 day on staked LP assets. The longer you lock your LP tokens, the more C3 tokens you will receive up to a maximum boost of 2x if you lock the LP for 1 year.

Upon expiry of the lock period, you may unstake your LP assets anytime. Even after the lock period expires, you will continue to earn C3 rewards as long as your LP assets remain staked.

5) Click “Lock” and sign the transaction to proceed locking your LP.

Note: If this is your first time locking, you will be prompted with 2 transactions. The first transaction is to approve locking. The second transaction is the actual transaction for locking your LP.

Holders of a particular LP also receive a maximum boost of 3x in C3 rewards if they hold the corresponding minimum amount of veC3 (vote-escrowed C3, more on this later) of said LP as reflected on the dashboard. This is indicated as “Min veC3 for Max Boost”. The boost is automatically applied as users stake their liquidity.

Claiming C3 rewards

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As you stake your LP, your accrued C3 rewards will reflect on this panel.

1) Click “Claim” to claim your C3 rewards to your wallet.

The ‘Base (theoretical) rewards’ indicate how many C3 tokens you would earn under a max boost scenario for your staked LP assets.

The ‘Weighted (actual) rewards’ reflect the number of C3 you will actually be earning given your current boost parameters.

At the time of writing, no KLIMA rewards are being incentivised.

Locking C3 for veC3

Users are able to lock their C3 tokens for non-tradeable veC3 (vote-escrowed C3) tokens, where token holders will be able to vote on governance proposals.

1) To lock your C3 tokens, hop on over to the protocol locking page.

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2) Enter the desired amount of C3 tokens you wish to lock.

3) Under “Days Locked”, enter the desired period length for locking.

The minimum locking period of C3 for veC3 is 7 days, where 1 C3 = 1 veC3. When you lock veC3 for the maximum length of time (4 years), 1 C3 will generate 4 veC3. As time goes on, the balance will slowly decrease down to 1 veC3 at the end of the expiry. At that time, you can redeem the veC3 into C3. Note that you can always extend your lock period if you so desire.

4) Click “Lock” and sign the transaction to proceed locking your C3 tokens.

Note: If this is your first time locking, you will be prompted with 2 transactions. The first transaction is to approve locking. The second transaction is the actual transaction for locking C3 tokens.

Once locked, users will be able view the amount of veC3 they own on the dashboard (refer to visual below).

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1) Click on “Checkpoint” and then “Claim” to claim the yields in C3 rewards to your wallet.

Voting on liquidity gauges

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The utility of veC3 extends to voting on liquidity gauges to direct flows of C3 inflation in order to boost rewards earned for all participants of the same pool. For example, the user above who just staked his UBO/KLIMA LP and is earning C3 rewards will be able to lock the rewards as veC3 and vote on UBO/KLIMA gauge so that all participants of that pool will have more C3 rewards distributed to them linearly according to their liquidity share. The liquidity pool gauge with the highest number of votes will have the greatest number of C3 emissions directed toward the pool.

To vote on UBO/KLIMA (or other desired gauges):

1) Click on UBO/KLIMA gauge

2) Select the desired weight percentage proportional to the amount of veC3 you have that you wish to allocate to the UBO/KLIMA gauge.

Note: You may allocate weights to more than 1 gauge, as long as your total allocation in selected gauges amounts to a maximum of 100%.

3) Click “Vote” and sign the transaction to proceed voting on your selected liquidity gauge.

Note: If this is your first time voting on a liquidity gauge, you will be prompted with 2 transactions. The first transaction is to approve voting. The second transaction is the actual transaction for voting on your selected liquidity gauge.

Disclaimer:

The information provided in this blog post pertaining to KlimaDAO (“KlimaDAO”), its crypto-assets, business assets, strategy, and operations, is for general informational purposes only and is not a formal offer to sell or a solicitation of an offer to buy any securities, options, futures, or other derivatives related to securities in any jurisdiction and its content is not prescribed by securities laws. Information contained in this blog post should not be relied upon as advice to buy or sell or hold such securities or as an offer to sell such securities. This blog post does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. KlimaDAO and its agents, advisors, directors, officers, employees and shareholders make no representation or warranties, expressed or implied, as to the accuracy of such information and KlimaDAO expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. KlimaDAO reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof. The information contained in this blog post supersedes any prior blog post or conversation concerning the same, similar or related information. Any information, representations or statements not contained herein shall not be relied upon for any purpose. Neither KlimaDAO nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this blog post by you or any of your representatives or for omissions from the information in this blog post. Additionally, KlimaDAO undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed in this blog post.