• Proposals
  • KIP 7: KLIMA Moss Liquidity Collaboration

Summary
Allow the DAO to pair $500k in KLIMA with $500k in MCO2 to seed a $1m dollar KLIMA/MCO2 liquidity pool. Allow policy to add KLIMA/MCO2 bonds in the future.

Motivation
MOSS is focused on catalyzing climate action and facilitating a carbon market on-chain. Our carbon token has been utilized by corporates such as SkyBridge, One River Asset Management, and GOL (a major Brazilian airline with >50 million customers in LatAm) and is listed on various exchanges, including Coinbase. We believe having multiple carbon assets and bridges will lead to a more robust on-chain carbon market and help diversify Klima’s treasury. Klima’s liquidity engine stands to empower the carbon market and we believe our supported projects and the infrastructure we have built will help expand this impact.

Proposal
This proposal is a continuation of KIP-6: Introduce Moss Bonds. Moss would like to provide $500,000 worth of MCO2 tokens to Polygon to pair with $500,000 of KLMA from the DAO to form a liquidity pool. This will be shared between MOSS and the Klima protocol, and be held by Klima protocol for a 6 month time period.

In the future, given enough demand, we request that the community allow the policy team to add KLIMA/MCO2 LP as an bondable asset as well. The MOSS bonds will serve as a gauge to determine the overall demand of the MCO2 token on polygon.

Other
Previous Forum Proposal:
https://forum.klimadao.finance/d/5-request-for-comment-klima-x-moss-collaboration/153

Polling Period:
The polling process begins now and will end at 1:00 UTC on 1/3/2022. If voted in favor, a Scattershot vote will be put up shortly after, and will run until 1:00 UTC 1/6/2022.

Vote

The addition of liquidity pairs is very positive, very important for the development of the community, and it is good to see the change

Wish I was able to better educate myself on how this will affect the KLIMA DAO. Valid concerns were brought in the previous forum discussion.

Due to lack of educational material, I will not be voting for or against this.

Seems like nothing will be stopping this train.

Does this KIP 7 imply the MCO2 -> KLIMA -> BCT -> USDC routing that was talked about the other day? I think that was a fair concern raised, particularly if this sets a precedent for future treasury assets that will employ a similar routing. I guess it begs the question "At what point does seeding a KLIMA/USDC pool start making sense?"

    What would be the impact on MCO2 token value due to this proposal?

    Always pays to diversify, but fair concerns as highlighted by E-bum.

    Klimadao will be the biggest liquid provider in these trading pairs. Just think about thous swap fees this is gonna generate.

    What will happen after 6 months? they will pull out the $500,000 worth of MCO2?
    And how will the trading fees of the pair divided? 50/50 with MOSS?

    Would be good to get a member of Klima DAO who is very knowledgeable in the space to give a high level pros and cons for these types of decisions. I have limited knowledge of the space but know KLIMA is a key part of our fighting climate change but do need some handholding sometimes 🤔