KumoDAO — TL;DR
In the following weeks, several posts will define the essence of KumoDAO. Follow us to bring Web3 investing tools to take climate action.
Specific posts about DeFi users, climate investors, tokenomics, and protocol features will be published.
Kumo and Climate Action
They occur everywhere at any time due to our ineffective actions at decarbonizing our world. Or, put more broadly, to our inability at recognizing the true value of our Planet; land, water, and forest; which make life possible.
Numerous climate change conferences had little impact on the CO2 levels.
Kumo Proposal
Kumo aims to recognize this value — and do it in the simplest way possible.
Kumo enables interest-free borrowing of KUSD against tokenized carbon offsets. It enables holding them while retaining liquidity over the investment and earning extra yield.
Financially speaking, the opportunity cost of owning carbon credits is thus much reduced.
Carbon credits will be more attractive to the investors, creating more demand, increasing their value, and allowing them to finance more carbon sequestration projects.
That’s putting money to work for our Planet.
Climate Action and Cryptos
In general, cryptocurrencies have a negative image in the climate tech business:
- Bitcoin is known to consume energy of whole countries due to its Proof-of-Work (PoW) architecture.
- Dogecoin and the likes of dog-theme meme coins provide for a purely opportunistic vision of crypto — aiming at fooling retail investors.
- Many scams, hacks and exploit are known to exist.
Kumo aims at steering away from volatile assets, and the associated FUD, by creating a stablecoin which is not prone to price manipulation.
Kumo provides very transparent, easy to grasp DeFi rulesets. At all time, the stablecoin value is soft pegged 1:1 to USD thru various mechanisms (namely arbitrage — The topic will be addressed further in upcoming posts).
KumoDAO governance aims to be the most transparent. Kumo is presently seeking to establish a legal structure to safeguard its mission. Moreover, we aim at having the highest accountability standard:
- High-quality audit
- Locked liquidity
- Delayed token vesting for team and investors
- Full doxxing of all main contributors.
- Multisig wallet
- On-chain voting
KumoDAO Protocol Basics
A dedicated post will be issued on KumoDAO protocol and tokenomics. Still, the following can be said.
About the KUSD stablecoin token
- Users deposit carbon credits and mint KUSD tokens.
- Minimum collateral ratio allowing capital efficiency (most likely 110%)
- KUSD tokens are minted interest-free, but with a small one-time fee.
- KUSD will be soft pegged 1:1 to USD thru chainlink oracle and Uniswap TWAP.
- KUSD will be fully redeemable against the underlying collateral (carbon credits)
About the Kumo governance token
- Kumo token is the governance token of the protocol.
- Protocol fees will be distributed to Kumo tokens holders (staking) and to the treasury.
- Voting will decide how the treasury is used and which carbon credits are accepted.
- Price is allowed to fluctuate according to market.
- Max supply of 100,000,000 KUMO
Kumo imagines a world where every wallet, every transaction pays a tribute to our Planet. Holding KUSD transforms your wallet into a carbon vault.
Thanks,
JP
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