KIP-43: Coorest - Digital Environmental Asset Liquidity Program (DEALP)

Summary Whitelist Coorest (https://coorest.io/) as the pilot partner for KlimaDAO’s Digital Environmental Asset Liquidity Program (DEALP) and deploy a flagship KLIMA/CCO2 pool.

Motivation The need to expand carbon liquidity within the KlimaDAO ecosystem is paramount in our continuous pursuit to streamline and stabilize environmental commodities markets. Coorest has agreed to be the launch partner of the Digital Environmental Asset Liquidity Program (DEALP) - enabling the bootstrapping of a KLIMA/CCO2 pool. KlimaDAO and Coorest are strategically positioning ourselves at the forefront of innovation, scalability, and accessibility.

This partnership aligns with our mission by leveraging both Coorest's technology and KlimaDAO's financial & technological acumen. It not only creates a synergistic collaboration but also provides a robust framework to fortify the liquidity and availability of carbon credits, thus contributing to a more fluid and resilient market. The proposed terms and parameters have been crafted to ensure fairness, balance, and the mutual growth of both parties, underlining our commitment to fostering a diversified and interconnected ecosystem.

Coorest will be the pilot partner for the Digital Environmental Asset Liquidity Program, which offers bespoke liquidity solutions to counterparties looking to create liquid markets for their environmental assets.

Proposed Terms DAO Swap

KLIMA Price: 100 CCO2

Total CCO2 sent to KlimaDAO from Coorest: 2,424,242.42

Total KLIMA sent to Coorest from KlimaDAO: 24,242.42

Coorest to use KLIMA to bootstrap a KLIMA/CCO2 LP

KlimaDAO to hold CCO2’s, never to be sold in the liquidity pool.

KlimaDAO may list CCO2 on Carbonmark at any time.

CCO2 Swap Modeling here: (https://docs.google.com/spreadsheets/d/18KE0TMQ1GVxHoA-uElhaX9uAAElg-C20y-OII4ObBc8/edit#gid=0)

Proposed Parameters Whitelist Coorest for usage of KlimaDAO’s DEALP contract with the following conditions:

LTV: 100%. Global debt limit (max borrowable amount): 25k KLIMA. Interest rate: 0%. sKLIMA deposit, sKLIMA repayment to retrieve CCO2/KLIMA LP. Execution:

A vote in favor of this proposal supports these dependent actions of Coorest and KlimaDAO:

1a) Coorest will transfer 2,424,242.42 CCO2s to KlimaDAO immediately upon proposal passing.

1b) KlimaDAO will make payment to Coorest in KLIMA tokens, equal to 24,242.42 KLIMA tokens at a fixed price of 100 CCO2 / KLIMA immediately upon receipt of CCO2.

2a) KlimaDAO will deploy the DEALP contract to open a loan facility that allows Coorest to deposit sKLIMA, deposit CCO2, receive 100% LTV on the sKLIMA deposit, and deploy a KLIMA/CCO2 LP that is redeemable via repaying the sKLIMA deposit.

2b) Coorest will deposit sKLIMA and additional CCO2 to the DEALP contract at a fixed rate of 100 CCO2 / KLIMA to bootstrap a CCO2/KLIMA liquidity pool.

Conclusion Embracing this collaboration with Coorest reinforces KlimaDAO's role as a leader in the decentralized climate finance space and signals our determination to pioneer pathways that enhance market efficiency and inclusiveness. By endorsing this proposal, we are taking an assertive step towards a future where carbon markets are more liquid, participatory, and capable of driving environmental impact.

If there is sufficient support, the KIP will move to Snapshot on 20/09/23.

Approve DEALP structure & Coorest as Pilot Partner?