Solid World DAO announces a new partnership that will support its mission to allow liquidity of forward carbon credits. The company is teaming with Neutral Protocol – a derivatives platform for ReFi assets that allows users to trade carbon futures, options, and execute strategies.
Neutral Protocol’s platform enables market participants to lock in prices for purchases/ sales of carbon credits or forward contracts, hedge their carbon or forward holdings, and express market sentiment while allowing a new layer of utility (yield/ net-neutral strategies).
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“Neutral Protocol is building a very important piece to the voluntary carbon market puzzle, with a market for carbon derivatives, perpetuals, and even forward contracts, our primary area of interest. We believe that this team has the knowledge and dedication to quickly become a vital player in these markets…” announced Solid World DAO in a statement.
Forward-selling carbon credits make climate-positive projects into viable businesses, however they sometimes struggle to finance their expansion and the timelines to receive credits for their activities can take multiple years.
As forward deals normally lack liquidity, institutions find them less attractive, therefore they are left in a bad negotiating position, unable to get the resources they need for maximum scaling.
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Solid World DAO helps stop climate change by using DeFi to de-risks carbon investments and make them liquid. The company creates a highly liquid infrastructure for the forward carbon markets to accelerate the flow of capital towards projects that can deliver large-scale, trustworthy, and real impact. According to Solid World, the approach results in 10x more investments deployed into the space.
The new partnership is expected to facilitate the flow of capital towards forward carbon credits and essentially allow meaningful projects to scale. Building services that will make carbon futures and options tradable is also critical in expanding voluntary carbon market participants and growth.
