Published Wed May 04 2022
Deepening its alignment with KlimaDAO’s mission to reward those who participate in financial activism for the climate, C3 has launched its wsKLIMA Staking Gauge. The gauge enables users to stake their wsKLIMA in exchange for C3’s governance tokens as rewards.
The wsKLIMA Staking Gauge showcases the power of the C3 platform by creating a win–win–win outcome for KLIMA token holders, the KlimaDAO protocol, and the C3 ecosystem:
Ultimately, the benefits of this incentive mechanism are passed on to projects that are helping to fight climate change by mitigating the impact of greenhouse gas emissions. The C3 token rewards that are distributed will create a new class of participants in C3’s decentralized voting system that determines which climate-positive projects receive support – and the additional utility and security for the KLIMA token will strengthen its position as a carbon reserve currency.
The impact can already be seen, with over $1 million in KLIMA locked in the wsKLIMA Staking Gauge within the first 24 hours of launch.
Follow the steps below to deposit your wsKLIMA into the C3 wsKLIMA Staking Gauge.
Earning rewards with the wsKLIMA gauge is a five-step process:
We’ve illustrated the steps below:
You can do this with the KlimaDAO app. Unlike sKLIMA, your wsKLIMA balance will not increase over time – but the rebase rewards are exactly the same (# sKLIMA = wsKLIMA x index). You can always unwrap wsKLIMA for sKLIMA.
When you navigate to the ‘Staking’ page, be sure to ‘Connect your Wallet’.
You can lock for one day, 365 days, or anywhere in between. The longer you lock your wsKLIMA for, the more your reward share will be boosted, up to a 2x boost. More on this in the section below, titled ‘How to maximize your rewards’.
Approve the transaction, and click ‘Lock’.
Your C3 rewards start to accumulate immediately. For more information on claiming and using your C3 rewards, consult the C3 User Guide, which also explains how to lock your C3 for veC3 and participate in governance of the C3 platform.
As with any time-based locking mechanism, users are faced with liquidity risk. You are trading the liquidity of your assets for the platform’s rewards. If you lock your wsKLIMA for a full year, you will not be able to withdraw your position until the lock period is over. Make sure to consider your decision carefully.
By locking wsKLIMA in the C3 staking contract, you will not be eligible to vote in on-chain voting for KlimaDAO governance proposals (KIPs) with the quantity of wsKLIMA that you have locked. This is because you are depositing your specified wsKLIMA balance outside of your own wallet address. By earning C3 and vote-locking it for veC3, you will however be able to participate in C3 governance – so be sure to carefully consider all factors in forgoing your ability to participate in KlimaDAO voting.
The C3 contracts are forked from audited Frax Finance contracts, which currently hold $2.21 billion in TVL (Total Value Locked) and have the trust of many of DeFi’s largest protocols. During the governance process for KIP-22, the KlimaDAO policy team deemed that the smart contract risks involved for staking are at acceptable levels.
As a user of the C3 platform, you have several levers to pull to maximize your rewards earned. The main factors to consider are as follows:
With the above considered, use the strategy that best suits your time horizon and objectives. Get started by visiting C3.app!
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