The eco-friendly Yield Farm is taking its first steps into the Carbon Credit business through NFTs backed by real planted trees
TreeDefi is a Yield Farming protocol that focuses on eco-friendly activities through ⅓ of the deposit fees on the platform. They plant trees through tree planting organizations and privately held planting projects around the world. Currently they’re implementing new features that will allow their entry into the ever growing Carbon Credit business.
TreeDefi strives to ameliorate the current deforestation issues through the blockchain, while promoting proof of stake development methodologies for their cryptocurrency tokens, allowing for an incredibly low impact on the environment compared to traditional proof of work assets, such as Bitcoin. Their recent NFTree Marketplace release is their first attempt at laying the foundation for their future Carbon Credit goals.
Incentives for Investors
TreeDefi investors can benefit from various Yield Farming opportunities while helping the environment. The platform offers farms, staking pools and launch pools that are updated once every two weeks. Furthermore, the tokens are based on low supply principles to fight heavy inflation and market fluctuation caused by an overload in supply.
As far as the new developments go, the protocol’s new releases will allow users to have multiple earning sources, such as AMM fees and CO2 tokens. The project strives to be one of the most solid Yield Farms available while moving into real world business opportunities as well.
In order to optimize the user experience TreeDefi has also launched a brand new marketplace that acts as a home for NFTrees while offering various innovative features. Users can purchase the NFTs with WBNB or with TreeDefi’s native tokens, SEED and TREE. Each NFTree can be put up for auction through the English or Dutch auction systems.
In the English system the user can set a base price, an auction length and then choose his preferred bid.
In the Dutch system the user can choose a maximum price, a minimum price and auction length. As the auction goes on the price will start to drop until someone goes through with a bid.
The Marketplace also features various convenient research filters to help users find their preferred NFTree, including: tree category, country of origin, CO2 offset range, price range.
TreeDefi will have lots of work to plant enough trees to supply the demand for carbon credits and to not allow extreme scarcity on the NFTrees that may make the price too high for companies and players interested in buying them for offset purposes. This is why 50% of the bidding fees are destined to planting activities which will provide stability for the ecosystem of their platform. This is interesting since it is a system where demand can be predicted and supplied before it turns into a problem. The current NFTrees are coming from various events that TreeDefi promoted across the world. They will also start planting trees in Brazil due to an exclusive partnership with landowners and specialists in the environmental field in the country. It is also important to mention that TreeDefi also has active planting projects in Indonesia and the Philippines, which can be checked on their Youtube channel.
How Will Their Carbon Credits Work?
TreeDefi’s Carbon Credit services start with NFTrees, which are NFTs backed by real life planted trees. Each NFTree is directly connected to a real tree and tracked accurately through the blockchain, offering metadata on CO2 absorption, name, identification code, birth date and place. Holding an NFTree will yield the user CO2 tokens, emitted correspondingly with the amount of CO2 absorbed by the real tree in question. Afterwards the user or company can use the tokens to create CO2 Offset Certificates for their activities. CO2 tokens will also be purchasable through TreeDefi’s upcoming automated market maker, offering the token both utility and speculative value.
The creation and management of CO2 Offset Certificates will be done through their Carbon Credit platform, intuitively designed to track all of the NFTree data accurately, ensuring fully unaltered information delivery.
Carbon Credit Market
The Carbon Credit market has seen tremendous growth and doesn’t seem to be slowing down any time soon. On the date of this article, carbon credits are fighting it out with oil, lumber, gold, and uranium on the most promising and valued assets. Talking about prices, the prices of carbon credits increased 115% in the last 12 months in Europe and the prediction of specialists is of extreme growth during this decade. The average prediction made by the UN for 2030 is 80$ per carbon credit, which is considered an extremely conservative prediction since the market in general values them at 100$ by 2025.
TreeDefi is setting itself up as a pioneer and one of the few DeFi projects trying to bring the blockchain to the real world through applications that will help companies, individuals and most importantly the environment. In such a seemingly promising business only time can tell the heights that will be reached in the next decade.