wsKLIMA is an index-adjusted wrapper for sKLIMA. Some people may find this useful for accounting purposes. Unlike an sKLIMA balance, a wsKLIMA balance will not increase over time.
When wsKLIMA is unwrapped, holders receive sKLIMA based on the latest (ever-increasing) index, so the total yield is the same.
What is wsKLIMA?
wsKLIMA is a wrapped-staked-KLIMA. Think of it as sKLIMA wrapped so as not to increase in balance, but still be able to claim rewards. The wsKLIMA balance is calculated by dividing sKLIMA holdings by the current “Index”.
The Index, which you can monitor on the KlimaDAO dApp, refers to the amount of KLIMA tokens accumulated if a staker had staked 1 KLIMA token from the first rebasing epoch.
The index can be used to track or check an sKLIMA position by marking down the index number at the point that KLIMA is staked, and that sKLIMA is unstaked.
Similarly, the index can be used to define a wsKLIMA position. This is achieved by dividing the index number when wsKLIMA is unwrapped by the index at the time of wrapping. This ratio will demonstrate how much the underlying sKLIMA balance has increased by during the period it what wrapped, as follows:
sKLIMA / Current Index = wsKLIMA
This is exactly what happens in the background of the dApp when sKLIMA is wrapped to calculate how many rebase rewards have been accumulated during the wrapped time period. This process ensures that when wsKLIMA is unwrapped, the right amount of sKLIMA will be received by the staker, and that the same reward rate is realised for each user, whether they have sKLIMA or wsKLIMA in their wallet.
Once unwrapping is completed, KLIMA will remain staked (as sKLIMA), and dApp users will automatically receive rebase rewards without needing to return to the staking page.
50 sKLIMA at the index of 10 gets you 5 wsKLIMA.
5 wsKLIMA with an index of 12, unwraps to 60 sKLIMA
Potential Use Cases for wsKLIMA
Due to KlimaDAO’s rebasing, the amount of sKLIMA held is not constant — it changes daily as staking rewards are paid out. When sKLIMA is wrapped into wsKLIMA the balance becomes fixed, and this allows for greater composability across DeFi. This means that wsKLIMA can be paired with with other DeFi tokens, or be integrated with other protocols on Polygon or cross-chain.
This can enable other protocols to build on top of KLIMA and unlock new use cases for our DAO.
Essentially, wsKLIMA can enable other protocols to build on top of KLIMA and unlock new use cases for our DAO. It can enable greater participation and collaboration within the carbon markets, and it is an important development that will enable us to achieve our aim of creating an on-chain carbon economy.
How to Wrap?
sKLIMA can be wrapped directly on the website by clicking on WRAP on the dApp.
The wsKLIMA token address should be added to MetaMask to keep track of it:
Contract Address 0x6f370dba99E32A3cAD959b341120DB3C9E280bA6 | PolygonScan
The Contract Address 0x6f370dba99E32A3cAD959b341120DB3C9E280bA6 page allows users to view the source code…
The information provided in this Medium Post pertaining to Klima DAO (“Klima DAO”), its crypto-assets, business assets, strategy, and operations, is for general informational purposes only and is not a formal offer to sell or a solicitation of an offer to buy any securities, options, futures, or other derivatives related to securities in any jurisdiction and its content is not prescribed by securities laws. Information contained in this Medium Post should not be relied upon as advice to buy or sell or old such securities or as an offer to sell such securities. This Medium Post does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. Klima DAO and its agents, advisors, directors, officers, employees and shareholders make no representation or warranties, expressed or implied, as to the accuracy of such information and Klima DAO expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. Klima DAO reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof. The information contained in this Medium Post supersedes any prior Medium Post or conversation concerning the same, similar or related information. Any information, representations or statements not contained herein shall not be relied upon for any purpose. Neither Klima DAO nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this Medium Post by you or any of your representatives or for omissions from the information in this Medium Post. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed in this Medium Post.