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What is CRISP-M?

Learn about the power of CRISP Scored Mangroves
On May 18th, 2023 - Solid World launched the first CRISP Scored pool for Mangrove Restoration. This marked the first time DeFi has been directly integrated with the financing stage of climate project development. Read the launch blog post here.

CRISP-M: Enabling Mangrove Restoration

Every CRISP-M token(CRISP Scored Mangroves) is a catalyst for positive environmental change, serving as a tangible commitment to mangrove restoration. As participants trade or hold CRISP-M, they directly contribute to these vital environmental efforts, enabling carbon sequestration and biodiversity conservation on a global scale. Forward contracts back every CRISP-M token for the delivery of carbon credits from the VERRA registry at a later date. The exact mechanics of this are detailed in CRISP-M and CRISP-C: Collateralized Basket Tokens (ERC-20)

Why Mangrove Restoration?

Mangroves are invaluable ecosystems, serving a multitude of roles that are essential to our planet's well-being. Not only are they among the world's most potent carbon sinks, they also provide a natural shield against coastal erosion and extreme weather events. Furthermore, mangroves are biodiversity hotspots, offering shelter and breeding grounds for countless species of flora and fauna. Read more about the benefits of Mangroves here.
  • Mangrove Restoration Credits are Nature-based Carbon Removal - Carbon credits originating from mangrove restoration projects are removals. Removal-based carbon credits are considered premium because they involve direct actions to remove existing carbon dioxide from the atmosphere, which can lead to net-negative emissions, offering a potential solution to reverse global warming. In contrast, emission avoidance-based credits only prevent additional CO2 from being released into the atmosphere, thus limiting their impact to maintaining current levels without directly reducing the existing carbon concentration.
  • Mangrove Restoration Increases Biodiversity - Mangrove restoration significantly boosts biodiversity by providing unique habitats for various species, from fish to mammals, that rely on these ecosystems for survival. Their complex root systems offer shelter and food, promoting species diversity while acting as nurseries for various marine species, which bolster larger aquatic food chains. Therefore, restoring mangroves directly contributes to enhancing biodiversity and environmental balance.
  • Mangrove Restoration Provides Meaningful Community Benefits - Well-functioning mangrove forests on their own already provide significant benefits to local communities for a variety of reasons, including:
    1. 1.
      Food Security: Mangroves are home to a variety of fish, shellfish, and other aquatic species, many of which are important sources of food for local communities.
    2. 2.
      Economic Opportunities: Healthy mangroves can provide economic opportunities for local communities, including fishing, honey collection, and eco-tourism.
    3. 3.
      Disaster Mitigation: Mangroves can act as natural barriers against storms, tsunamis, and coastal erosion, reducing the impact of these events on local communities and their infrastructure.
    4. 4.
      Climate Regulation: Mangroves are highly efficient carbon sinks, helping to mitigate climate change impacts, which can disproportionately affect vulnerable coastal communities.
    5. 5.
      Water Quality: Mangroves filter pollutants from water, improving water quality for both humans and wildlife.
    6. 6.
      Cultural Value: Mangroves often have cultural or spiritual importance for local communities, and their restoration can reinforce these values.
    7. 7.
      Project Revenue: We work with committed organizations that also redistribute a large amount of the project's revenue back to the local communities, which also, in turn, provides a myriad of additional benefits.

Committed industry partnerships

Our journey towards innovating within the carbon credit market is amplified by the critical partnerships we've formed with Vlinder, ALLCOT, and MangroveDAO.
  • Vlinder: Vlinder is an organization that is dedicated to addressing climate change through a variety of efforts. They primarily focus on planting mangroves and funding early-stage climate projects. This organization enables companies and individuals to achieve their Net-Zero commitments by building high-quality carbon removal supply and climate tech solutions for the carbon market​. You can read more about them by clicking here.
  • ALLCOT: ALLCOT is an organization that acts as a strategic partner to provide innovative, comprehensive, and tailored solutions for climate change mitigation and adaptation projects, as well as sustainability and decarbonization strategies​1​. They offer specialized advisory and consultancy in corporate sustainability, support emissions capture and avoidance through project development, engage in triple-impact environmental trading, and work to enhance capacity building on the path to Net Zero. You can read more about them by clicking here.
  • MangroveDAO: MangroveDAO is a Decentralized Autonomous Organization (DAO) focused on restoring degraded mangrove habitats worldwide, particularly in Myanmar. It collaborates with the Worldview International Foundation on a community-based model to replant mangroves, provide education and employment to locals, and support gender equality. You can read more about them by clicking here.
Together, we're redefining the financing of mangrove restoration, creating a fair and liquid market for climate finance while upholding stringent environmental integrity and transparency standards.

CRISP-M pool parameters

Solid World aims to establish standardized, robust parameters for our CRISP-M pools. This structure is designed to maintain high-quality projects in our pool while simultaneously supporting local communities. Below are the key parameters for the CRISP-M pool:

Project Requirements

  • Forward Timeframe: The project must involve Verra Mangrove Restoration forwards valid for up to 5 years from the date of issuance.
  • Registration and Commencement: Preferably, the project has already been registered with Verra. However, if the project developers have a demonstrable track record of successful initiatives, it may suffice that planting operations have already begun.
  • Community Impact: Over 50% of the benefits from the project must be directed towards local communities. This condition aligns with our dedication to environmental equity and ensuring that the positive impacts of carbon credit projects extend to the people most affected by climate change.
  • CRISP Scoring: Only credits that achieve an A to AAA CRISP score will be considered. The CRISP scoring mechanism is designed to evaluate and reduce the risk of carbon credit projects, thereby ensuring the quality and reliability of projects within the pool. Read more about the CRISP framework by clicking here.

Curation Council Oversight

It's important to note that every project will undergo a comprehensive review by our Curation Council, consisting of 7 guardians. The Council maintains the power to veto any project proposed for inclusion in the pool, further safeguarding the quality and integrity of the CRISP-M pool.
To learn more about the parameters for the CRISP-M pool and the process of accessing the pool, please refer to our Supplier Guide. This resource is specifically designed to aid suppliers in navigating the Solid World ecosystem and ensuring their projects meet our stringent, sustainability-focused criteria.

Launch Supply Tokenomics and Parameters

The launch price was $30 per CRISP-M token. The annual forward discount rate was 8% at launch. The total amount of CRISP-M applicable tokenized forward carbon credits was 32041 tons across six projects, from which 22629 tons were converted into CRISP-M tokens. Every underlying forward contract can be found on their respective project pages. Note that these numbers will change with market activity.
As we set up a new market, we needed to match the suppliers and capital providers. This means the project developers held 50% of the supply at launch, while the dollar-side liquidity providers held the other 50%. None of the liquidity providers can reduce their position the first six months from launch. Still, all the liquidity providers are interested in holding a long-term position thanks to the APR or Curation Council vote.

Key CRISP-M Smart Contracts: Access and Transparency

Transparency is integral to our operations. To that end, here are the critical contracts associated with CRISP-M:
  1. 1.
    Token Contract Page: For a detailed look at the CRISP-M token contract - 0xEF6Ab48ef8dFe984FAB0d5c4cD6AFF2E54dfdA14
  2. 2.
    Liquidity Pool Page: Access the liquidity pool where CRISP-M tokens can be traded - 0x4a39cBb8198376AB08c24e596fF5E668c3ca269E
  3. 3.
    Gamma Pool Page: Learn more about the Gamma Pool, where you can deposit CRISP-M tokens, become a liquidity provider, and earn trading fees - 0xe339ecc9deef6b69dbc394abf6fbff19450faeb6
  4. 4.
    Staking Pool Page: Visit our staking pool page for information on staking your LP position to participate in ecosystem incentives provided by the protocol - 0xaD7Ce5Cf8E594e1EFC6922Ab2c9F81d7a0E14337
  5. 5.
    Rewards controller: The controller that is automatically distributing rewards to CRISP-M holders - 0x291705e9e4338cfc75C041E3Db1DF0591EeD0666
Join us on this transformative journey by staking at https://app.solid.world/
With CRISP-M, we're not just reshaping DeFi – we're leveraging its potential to make a tangible difference to our planet, one mangrove at a time.