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Summary

This proposal outlines a strategic initiative to expand KlimaDAO’s environmental commodities market on Base.

Motivation

KlimaDAO has built a suite of tools and amassed a treasury on Polygon capable of supporting multiple EVM chains.

We now will be offering users the ability to retire carbon from any chain using Circle's USDC via a cross-chain retirement tool (powered by Axelar cross-chain function calls https://axelar.network/blog/cross-chain-function-calls-will-replace-bridges), removing any need for $KLIMA or carbon liquidity on the source chain. The first chain this tool will be deployed to is Base.

Retirement functionality is one aspect of an environmental commodities market, but without $KLIMA on the source chain users are limited in how they can interact with our ecosystem. With the rapid growth of new users to Base (seen above), the continued onboarding of family offices and institutions via initiatives like Project Diamond by Coinbase & Coinbase Asset Management, and the regulatory clarity and skill exemplified by the Coinbase Legal and Policy teams - make Base an ideal destination for expansion of KlimaDAO’s environmental commodity infrastructure.

Proposal

Introduce cross-chain retirement functionality to Base, accessible with USDC or KLIMA via a soon-to-be-developed frontend similar to https://app.klimadao.finance/#/offset. (Axelar backend contracts are already complete)

Expand $KLIMA liquidity to Base and seed a KLIMA/wETH liquidity pool.

Implementation

  • Purchase 100 ETH using USDC from the KlimaDAO Treasury
  • Create a new 3 of 5 multisig on Base managed by the same signers as the current DAO wallet on Polygon
  • Deploy $KLIMA as an interchain token using a cross-chain token service like Axelar;s Interchain Token Service: https://axelar.network/interchaintokens
  • Bridge an equivalent value of KLIMA & 100 ETH to Base, depositing in KlimaDAO’s new Base multi-sig
  • Deploy KLIMA/WETH liquidity on Base
  • Deploy cross-chain version of the https://app.klimadao.finance/#/offset frontend
  • Enable cross-chain retirements from Base

Conclusion

The proposed expansion of KlimaDAO onto Base represents a strategic move to leverage the protocol for broader impact on one of the fastest growing blockchain ecosystems. By establishing a presence on Base, KlimaDAO aims to enhance the liquidity, accessibility, and utility of environmental commodities, aligning with our mission to drive meaningful action against climate change. This initiative promises to extend our reach, enabling more users to participate in the carbon market and contribute to global sustainability efforts.

    optima this is an exciting first step into the brave new inter-chain world, and I think Base is a very appropriate choice for the first new chain to deploy this strategy on given their rapid growth, large userbase and connections with corporate and institutional clients via Coinbase.

    As this initial cross-chain approach rolls out, I'm curious to learn more about any sources of digital carbon emerging on Base. Meanwhile, Axelar seems like a useful and reasonably secure mechanism for providing retirement functionality for carbon credits available on Polygon PoS.

    I'm curious if any Klimates have experience working with Axelar on other projects? From what I've seen it seems quite robust and relatively easy to implement.

    I'm also curious which DEX we'd be deploying the KLIMA/wETH liquidity on? The top DEXs on Base are Uniswap and Aerodrome... any opinions out there on which to prefer?

      Uniswap and we get to hooking too.
      Hoping for a 1% fee on the pool to liquidity, but i guess the retirement aggregator is another 1% fee.
      Also interested in Axelar, I have seen use of stargate, portal and hop.

      All for it.

      Strongly support the proposal. Clearly, there is a lot of interest and money coming into Base right now, which is why I commend the team for bringing this forward so quickly. We should also be seeking support from ecosystem players like Jesse Pollak to show that Base can house actually useful things other than memecoins.

        MarcusAurelius
        Based.
        My gut feeling says Uniswap, for the brand name and people are comfortable using it. In my opinion it creates a sense of legitimacy. I even think exclusively being on Sushiswap until now may have been a barrier to entry to some.

        I would be very keen to see KLIMA paired with ETH!

          Charlaiz Based.

          uniswap is definitely the direction our polygon liquidity is trending in. for base, something to consider:

          Aerodrome has a very attractive incentive structure, and for this reason has 2x TVL of uni on Base, with same core offerings for users but more offerings for protocols

          decision is certainly between uni / aero - have a proposal coming specifically on this topic to continue the conversation 🙂

          At least I was not wrong with my idea...if you want to go on Base Aerodrome is the way to go!

          MarcusAurelius Aerodrome has already a very big footprint on Base. The team is great and takes responsibility and drives reasonable actions to bring the project AND Base to the next level! Alex is a well known person in the space. I am with them since the Velodrome inception and i still love the idea and how it developed. Andre Cronje started with a stone back then and the Velodrome/Aerodrome team grounded a diamond out of it!

          In favour of elevating this to a KIP. Could be excellent timing to acquire ETH and establish a presence on fast-growing Base. Will be essential to leverage all co-marketing opportunities that present themselves. Onwards!

          This proposal opens the door to a lot of exciting possibilities for KlimaDAO and the onchain carbon markets as a whole. Expanding to Base will provide the opportunity to form new relationships and strengthen prior partnerships across the Base ecosystem. Base has been buzzing with activity and I think this proposal allows KlimaDAO to engage in a meaningful way with this fast growing community. I feel that KLIMA paired against ETH would generate more volume which could prove beneficial to KlimaDAO's goals. In terms of DEX to choose for liquidity, Aerodrome has compelling rewards for stakeholders of their protocol and that would give the KlimaDAO policy more levers. Although, Uniswap also has significantly higher volume on Base than Aerodrome. Over time, there may be advantages to introducing pools on both.

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