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'.
SAN FRANCISCO, October 4, 2022 (Newswire) - 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.
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.
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.
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