6. Technical Summary
Market validation → developing Brokoli DEX
- Technical team working on DEX protocol → allowing offsets of transactions
- Public Security Audit → security measures before the release of V1 to ensure safety of funds held on Brokoli’s Climate Fee Account;
- Introducing Climate Community - those that stake $BRKL token will vote on the allocation of donated funds
Launch of Green NFTS → people that pledge will get an NFT with the number of trees they helped plant
- Our Climate Team will calculate the footprint of all major coins and tokens;
- Business development for the launch of our dApps to integrate Brokoli API into other platforms
- Tree planting, renewable energy project, and e-waste collection & recycling partnerships
- Launching on Binance Smart Chain to enable dApps integrations
Expansion from DeFi-only to entire blockchain → launch of our digital dashboard for personalised offset solutions
- Launch of Climate Portal API on our website, where individuals and businesses will be able to manually offset their footprint based on how they use digital assets
- Referral system → Tracking offsets of referred users and rewarding the referrer in BRKL tokens;
- Marketing campaign with climate and DeFi opinion leaders to spread awareness about the environmental impact of digital currencies;
- Expansion from DeFi-only solution to the entire blockchain ecosystem, including centralised platforms
Brokoli’s DEX will use third-party DEXs like Uniswap, Sushiswap and others to act as a green gateway to other dApps without building its own infrastructure and liquidity pools. Brokoli’s DEX will leverage an automated market maker that gives liquidity providers more control over the price ranges in which their capital is used, with limited effect on liquidity fragmentation and gas inefficiency. This design does not depend on any shared assumption about the price behavior of the tokens. Because of that, we will be able to implement the flexible fees system used on other DEXs: the swap fee would no longer be locked at a fixed percentage of transaction, but variable according to the preferences of the liquidity provider. However, while in other platforms fees are taken by the exchange, Brokoli will use fees in a decentralised climate offsetting process. The supported fee tiers will range from 0.05% to 10% of the transaction based on liquidity provider’s preference.
The core concept that the Brokoli DEX will be based on is concentrated liquidity that allows it to charge a climate fee seamlessly on most transactions. This means that traders will bound liquidity within a specific price range, and will not be charged any more for the transaction. However, if the price range is not reached during a transaction, the difference counts as climate fee and is transferred to offset carbon footprint in a decentralised manner. As liquidity providers are free to choose smaller, flexibly chosen increments, a position would only require to keep enough reserves for trading in that range, and therefore can act like a constant product pool with larger reserves within that range. Furthermore, liquidity providers may reduce their transaction costs by concentrating their liquidity in a narrow range around the current price, and adding or removing tokens as the price moves to keep their liquidity active. This is enabled by there not being a limit of how many positions traders can open. However, it is expected that the ranges will generally be bigger on Brokoli than on other DEXs with similar concentrated liquidity structure as the fee goes towards transparent carbon offsets.
General UX Scenario
A Norwegian company CHOOOSE offers a digital API that various aviation, travelling, hospitality, and other companies can introduce on their checkout page if they want to offset the carbon footprint of their service or product. The company then uses donated funds to implement nature-based solutions, carbon removal, Sustainable Aviation Fuel and other measures to offset the climate impact of the service/product. CHOOOSE serve clients such as Heathrow, Norwegian, WizzAir, Santander and more, acknowledging the need for climate offsetting APIs in direct-to-consumer platforms. The example of CHOOOSE illustrates how, if given a choice, customers are likely to offset their footprint. Meanwhile, the users of DeFi platforms are not presented with an option to act climate positively.