🀽Deposit <-> Receive

A high-level overview of the different components that govern the the conversion of SCT to index tokens.

Index Token Configuration

Each index token has a unique configuration and a set of predetermined rules that protect the integrity of the index asset.

1. Token Validity

This filter only allows valid SCT tokens to be deposited in the tokenized carbon vault, which is done by whitelisting valid token smart contract addresses. The reason for this filter is to prevent users from depositing custom tokens into the pool.

2. Type Check

Each carbon pool only accepts tokens of similar attributes that are compliant with our standards. For example, a user cannot deposit forestry carbon tokens in the Blue Carbon Credit (BCC) vault.

Examples of types of Carbon Pools:

  • country = Bahamas - a pool that only accepts SCT carbon tokens from the Bahamas.

  • type= Blue Carbon - a pool that only accepts SCT carbon tokens from Blue Carbon projects.

  • vintage > 2018 - a pool that accepts SCT carbon tokens from 2018 and later.

  • compliance market = certified emissions reduction (CER) - a pool that only accepts SCT carbon tokens that were migrated from the compliance market.

For instance, the Blue Carbon vault would be created with a token called $BCC Blue Carbon Credit. This vault would only carry carbon offsets captured by the world's ocean and coastal ecosystems.

Deposit <-> Receive

Once the carbon credits have been successfully bridged and fractionalized into SCT tokens, users can deposit their tokenized carbon credits into a carbon pool. Note: the user will have to pay a transaction fee to the Solana network as a method to support the economic design of the blockchain.

Once the SCT tokens have been validated by the index token vault configuration rules, they become eligible for deposit. After the user signs the transaction to deposit their SCT tokens, they become locked in the vaults smart contract, and an equivalent amount of index tokens (e.g. Blue Carbon Credit) is and sent to their wallet. The carbon vaults are a two-way bridge, as they allow users to redeem their index tokens for the original SCT tokens, in order to retrieve, retire, and offset their GHG emissions.

Every index token is backed exactly by 1 SCT in the pool smart contract ~ equivalent to 1 carbon credit.

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