About Carbon pools

Carbon Pools aggregate a variety of project-specific tokenized carbon tonnes into interchangeable pool tokens.

What is the Functioning of Carbon Pools?

After a project’s carbon credits are tokenized and fractionalized through the CyberTrees Bridge, they become tokenized carbon tonnes. Each carbon credit token contract retains all specific project details, including the project's country and methodology. As a result, tokens from one project are distinct and not directly exchangeable with tokens from another, even if they closely resemble each other.

These tokenized carbon credits can subsequently be contributed to pools. These pools are designed to create liquidity and fungibility among tokens from similar types of projects.

Pool Mechanics

Every pool in the system is distinct, governed by specific rules determining the eligibility of carbon credit tokens for deposit. This is controlled through two primary filters:

1. Verification of Carbon Credit Token Status:

   • This step ensures that only approved, whitelisted carbon credit token contracts are accepted into the pool. It acts as a safeguard to prevent the inclusion of any unauthorized or custom tokens.

2. Assessment of Token Attributes Against Pool Requirements:

   • When setting up a pool, certain gating attributes are defined. Any carbon credit token proposed for deposit must possess these specified attributes. If a token doesn't meet these criteria, the system automatically rejects the deposit transaction.

These mechanisms ensure that each pool operates correctly and maintains the integrity of the tokens it contains.