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description: Overview of the Carbovalent Protocol
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# The Carbovalent Protocol

### Protocol Summary

At the core of the Carbovalent protocol is the [Morpheus Carbon Bridge](bridge/morpheus-carbon-bridge), which enables the tokenization of carbon credits as SPL tokens. The bridge allows for the migration of carbon credits from traditional registries[ ](https://verra.org/)to our on-chain meta-registry subject to meeting the predefined criteria.&#x20;

Once carbon credits are bridged they become represented as a newly minted reference SPL NFT, which bundles and stores the bridged credits along with their information as metadata. The NFT can either be traded on Solana NFT marketplaces like [Magic Eden](https://www.magiceden.io/) or fractionalized into reference SPL tokens called **Solana Carbon Tonne or SCT** - each SCT token represents 1 carbon credit (equal to 1 [CO2e](https://www.coolerfuture.com/blog/co2e) tonne). Fractionalization is completely customary, a Reference NFT representing a batch of 1000 carbon credits can be fractionalized into 600 SCT tokens and a 400-credit NFT or 1000 SCT tokens. **Note: The metadata from the Reference NFT is preserved by each SCT token and can be traced back to its source registry via the distributed ledger by checking previous transactions. This data includes carbon credits attributes.**&#x20;

After fractionalization, SCT tokens can either be retired to offset emissions or deposited into the Carbon Vault in return for liquid SPL index tokens (BCC or FCC) via the Deposit+Recieve mechanism. This process is governed by a unique set of rules and configurations that verify which SCT tokens are being deposited and return an equal amount of index tokens of the same carbon credit type. This process is also reversible and allows users to alternate between illiquid and liquid carbon assets as desired for the use case.&#x20;

Trading of liquid index tokens (BCC or FCC) is facilitated by the Carbovalent DEX. The DEX is powered by Open Book a community-led fork of Serum V3. The DEX aims to support instant and permissionless trading of various carbon assets such as carbon index tokens, derivative tokens, and leveraged tokens.

To offset carbon emissions, users retire allocated SCT tokens using the retirement mechanism on the Carbovalent Dapp. The retirement process burns the allocated SCT tokens from circulation and returns the retirement data to be stored on the blockchain. This allows for publicly accessible carbon accounting that can incentivize the community. &#x20;

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