Ask or search…

About carbon pools

Carbon Pools bundle multiple project-specific tokenized carbon tonnes (TCO2 tokens) into fungible pool tokens. This enables liquidity and price discovery for different classes of carbon assets.

How do carbon pools work?

Once a project's carbon credits have been tokenized and fractionalized using the Carbon Bridge, these credits are represented as TCO2 tokens (tokenized carbon tonnes). A TCO2 token contract still contains all the project-specific attributes, such as the project's country or methodology. This means tokens from one project are not interchangeable with tokens from another project, even if they are very similar.
TCO2 tokens can then be deposited into pools, which enable liquidity and fungibility across similar project types.

Pool logic

Each pool has a unique configuration and carries a certain logic that dictates which TCO2 tokens can be deposited into it. This logic is based on two filters:
  1. 1.
    Is the token to be deposited a TCO2 Toucan carbon token?
    This check guarantees that only whitelisted token contracts are accepted and prevents somebody from depositing a custom token into a carbon pool.
  2. 2.
    Do the TCO2 token attributes satisfy the pool's requirements?
    When a pool is deployed, it needs to specify gating attributes. Any TCO2 token deposited in the pool must contain at least these attributes — otherwise the deposit transaction will revert.
A few examples of gating attributes a carbon pool might have:
  • standard = Puro — only accepts TCO2s from the Puro standard
  • vintage = >2021 — only accepts TCO2s from 2021 and later.
  • country = Colombia — only accepts TCO2s from Colombia.
Gating attributes can be further specified to only allow specific methodologies or project IDs.