Carbon Neutral/ESG Synthetix Asset Issuance with Carbon Utility Token (CUT)

Overview The purpose of this proposal is to enable Synthetix to issue carbon neutral synthetic assets utilizing Carbon Utility Token (CUT) which could double the current amount of Synths on the platform and make Synthetix the only carbon neutral ESG (Environment, Social, Governance) focused DeFi platform currently in existence. According to Bloomberg ESG assets under management may hit $53 trillion by 2025 https://www.bloomberg.com/professional/blog/esg-assets-may-hit-53-trillion-by-2025-a-third-of-global-aum/ and carbon neutral ESG focused DeFi platforms could have a strong competitive advantage over other DeFi platforms in attracting ESG focused capital.

Value to the Synthetix Protocol or Community Carbon Utility Token (CUT) enables the Synthetix Protocol to offer carbon neutral Synths which could double the amount of actively traded Synths (as well as double fees) and attract ESG focused institutional capital to Synthetix which could greatly increase trading volume and profitability. Any current Synth could be replicated by making the existing Synth's carbon footprint carbon neutral with CUT so sETH for example when coupled with CUT could made gETH ("g" in this case standing for "green") and so on for all current Synths on the Synthetix platform which could include sCUT as well. In addition a new carbon neutral index could be created on Synthetix similar to sDEFI and sCEX (and their inverses) which could be called gDEFI and gCEX for example. Carbon Utility Token (CUT) has incurred great cost to launch a compliant project in Liechtenstein (under the Blockchain ACT as a Utility Token) and CUT recently launched on Bittrex Global which handles investor KYC (Know Your Customer) for the project. The cost of CUT's compliance and being established in a well known and institutionally recognized jurisdiction like Liechtenstein as well as a well known KYC conducting compliant exchange like Bittrex Global are additional value adds that CUT brings to the Synthetix Protocol and Community.

Applicant Background Carbon Utility Token (CUT)(www.cut.eco) is an ERC-20 based utility token incorporated under the Laws of Liechtenstein under the Blockchain Act. Carbon Utility Token was launched by CUT Carbon Distributed Technologies AG and is currently traded on Bittrex Global (under the ticker "CUT"). CUT provides the utility of carbon offset retirement as a service and has over 500,000 tons of third party certified carbon offsets on its balance sheet from landfill gas capture projects in Canada (all carbon offsets are non REDD or REDD+ credits). Carbon Utility Token's Coingecko page is https://www.coingecko.com/en/coins/carbon-utility-token Additional Resources -CUT's podcast with Bittrex Global on Spotify https://open.spotify.com/episode/3tkq7tCZjMvatk9WoWffCC -CUT's AMA (Ask Me Anything) with Bittrex Global https://twitter.com/BittrexGlobal/status/1374786556792250371?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1374786556792250371%7Ctwgr%5E%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fpublish.twitter.com%2F%3Fquery%3Dhttps3A2F2Ftwitter.com2FBittrexGlobal2Fstatus2F1374786556792250371widget%3DTweet -World Economic Forum article mentioning CUT alongside Tata Steel regarding how blockchain technologies can help build a greener future https://www.weforum.org/agenda/2021/06/how-blockchain-and-cryptocurrencies-can-help-build-a-greener-future/ -CUT Whitepaper https://drive.google.com/file/d/1PQqyluvEuiAjgMcriz6ZlDeVTyq-MD57/view?usp=sharing -CUT Overview Deck https://drive.google.com/file/d/1PvmBTxoGVgWvbUZGVe27x0_D4bBbUNqO/view?usp=sharing

Implementation Plan The Implementation Plan for CUT integration into Synthetix is very straightforward. CUT is an ERC20 Token and 1 CUT equals 1kg of Carbon Offset. CUT would need to integrate into the Synthetix API and build a carbon footprint calculator to calculate the carbon footprint of Synthetix transactions as well as the carbon footprint of any non ERC20 crypto (such as sBTC) or legacy fiat or commodity Synths. Once the carbon footprint calculation has been calculated for each Synth and the average carbon footprint has been calculated re minting, debt burning, price oracles (CUT would likely need to further integrate with Chainlink's API to calculate the carbon footprint of price oracles so they can be offset) an approximate number of CUT can be added to offset the carbon footprint of each transaction on the Synthetix Network and Synthetix may even be able to charge premium pricing for carbon neutral transactions. It is very likely that Carbon Neutral Synths will develop their own distinct pricing and volume as their own unique asset class for ESG and environmentally focused investors.

Additional Information For any additional information or if there are any questions please send any inquiries to eg@cut.eco

Funding Required ($ Value) $500,000