wsKLIMA is an index-adjusted wrapper for sKLIMA. Some people may find this useful for accounting purposes. Unlike an sKLIMA balance, a wsKLIMA balance will not increase over time.
When wsKLIMA is unwrapped, holders receive sKLIMA based on the latest (ever-increasing) index, so the total yield is the same.
What is wsKLIMA?
wsKLIMA is a wrapped-staked-KLIMA. Think of it as sKLIMA wrapped so as not to increase in balance, but still be able to claim dilution. The wsKLIMA balance is calculated by dividing sKLIMA holdings by the current “Index”.
The Index, which you can monitor on the KlimaDAO dApp, refers to the amount of KLIMA tokens accumulated if a staker had staked 1 KLIMA token from the first rebasing epoch.
The index can be used to track or check an sKLIMA position by marking down the index number at the point that KLIMA is staked, and that sKLIMA is unstaked.
Similarly, the index can be used to define a wsKLIMA position. This is achieved by dividing the index number when wsKLIMA is unwrapped by the index at the time of wrapping. This ratio will demonstrate how much the underlying sKLIMA balance has increased by during the period it what wrapped, as follows:
sKLIMA / Current Index = wsKLIMA
This is exactly what happens in the background of the dApp when sKLIMA is wrapped to calculate how many rebase rewards have been accumulated during the wrapped time period. This process ensures that when wsKLIMA is unwrapped, the right amount of sKLIMA will be received by the staker, and that the same reward rate is realised for each user, whether they have sKLIMA or wsKLIMA in their wallet.
Once unwrapping is completed, KLIMA will remain staked (as sKLIMA), and dApp users will automatically receive rebase rewards without needing to return to the staking page.
50 sKLIMA at the index of 10 gets you 5 wsKLIMA.
5 wsKLIMA with an index of 12, unwraps to 60 sKLIMA
Potential use cases for wsKLIMA
Due to KlimaDAO’s rebasing, the amount of sKLIMA held is not constant — it changes daily as staking rewards are paid out. When sKLIMA is wrapped into wsKLIMA the balance becomes fixed, and this allows for greater composability across DeFi. This means that wsKLIMA can be paired with with other DeFi tokens, or be integrated with other protocols on Polygon or cross-chain.
This can enable other protocols to build on top of KLIMA and unlock new use cases for our DAO. Essentially, wsKLIMA can enable other protocols to build on top of KLIMA and unlock new use cases for our DAO. It can enable greater participation and collaboration within the carbon markets, and it is an important development that will enable us to achieve our aim of creating an on-chain carbon ecosystem.
How to wrap?
sKLIMA can be wrapped directly on the website by clicking on WRAP on the dApp.
The wsKLIMA token address should be added to MetaMask to keep track of it:
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