Published Tue Oct 04 2022
The partnership between KlimaDAO and Sushi leverages Chainlink Automation to enable users to automatically offset their carbon footprint through a 'Green Fee'.
KlimaDAO and Sushi have co-launched a first-of-its-kind carbon offset integration for Sushi's decentralized exchange (DEX) on the Polygon network. The project allows users to 'opt-in' to compensate for the carbon emissions of a transaction for a nominal fee. Users opting in will offset carbon credits equivalent to 0.02 MATIC per transaction, from tokenized carbon credits contained within KlimaDAO's Sushi Liquidity Pools.
The project will also leverage Chainlink Automation to help enable automatic offsetting directly on the blockchain. Chainlink Automation nodes will bundle users' opt-in transactions to be offset at 24-hour intervals by routing through the KlimaDAO retirement aggregator, which executes carbon offsets. This requires no additional activity from KlimaDAO or Sushi to execute the offset, making this a fully automated climate solution deployed on the blockchain.
DEXs are one of the more intensive pieces of infrastructure on the blockchain because of the frequency of transactions that they facilitate. From an energy perspective, however, Sushi on Polygon is a lightweight solution given that Polygon is a Proof of Stake network, and Ethereum recently underwent its merge which has further reduced the emissions of the network by an estimated 99%.
The project launch comes after Sushi's users previously voted to develop a carbon offsetting solution for the DEX in collaboration with KlimaDAO. It is part of a broader trend of Web3 projects taking ownership over their carbon emissions and demonstrating that there are the tools and appetite to mitigate the climate impacts of blockchain technologies as part of society's shift to a cleaner economy.
This collaboration gives users an opportunity to deliver real-world impact with every transaction. It also shows that green fees can be integrated into web applications and software, giving users the opportunity to unlock more climate finance, at scale.
Sushi users can easily opt-in to offset their transactions.
1. First, head to Sushi.com and connect your wallet in the top right corner:
2. Ensure that you are connected to the Polygon Network:
3. Simply click the leaf icon. By default it is inactive (indicated by the grey color). When active it will light up green.
4. You have now opted in – your swaps will be 100-fold overcompensating the actual emissions of each transaction via the Green Fee tech stack. Congratulations on making a conscious, climate-positive choice!
You can track and showcase your climate impact by claiming your Pledge Dashboard, which will also surface each Green Fee transaction you make on Sushi.
You can always verify your Green Fee setting on Sushi by checking that the green leaf is lighting up, or clicking the 'Settings' cogwheel and looking at the 'Carbon Offset' toggle.
KlimaDAO is an on-chain scaling solution for the Voluntary Carbon Market. KlimaDAO aims to open up the market to greater transparency and efficiency by combining tokenized carbon credits with a blockchain-enabled technology stack.
If you are interested in participating in KlimaDAO's governance process, join the Forum. If you are a business looking to offset your carbon footprint, get started here.
Sushi is a DEX and a Lending & Margin trading app. Sushi allows users to trade virtual currencies using a connected crypto wallet. Users can buy and sell across 11,700 cryptocurrency pairs and trade tokens across seven crypto networks via the newly launched cross-chain swap.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.
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.