At any point, the holder of a carbon pool token can redeem it for an underlying project-specific
TCO2token. This burns the carbon pool token and sends the underlying tokens to the user.
This opens up arbitrage opportunities if a particular
TCO2could be deposited into multiple pools, and guarantees the creation of a price floor for on-chain carbon pool tokens.
It's important to note that when redeeming, you can:
- auto redeem (which gives you the lowest ranked TCO2s)
Side note: ranking of TCO2s is done manually by us, and is based on criteria: like year, methodology, location, etc.