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FAQs
In case you couldn't find the answers to your questions elsewhere... 🙈
Staking with Spirals means that you can always redeem the staked asset. Let's break down what that means for token supported today.
When you stake Celo with Spirals, that is staked on validators that power Celo's L1 consensus mechanism. Since L1 staking guarantees that staked Celo can be withdrawn*, Spirals is also able to make this claim. Today, we do this through an audited liquid staking protocol called Staked Celo.
*One small caveat here is slashing penalties. This is why Staked Celo has a strict criteria for validator selection & rotation to minimize the probability of slashing.
When you stake cUSD with Spirals, our vaults deposit cUSD as collateral into a decentralized lending protocol called Moola Market (fork of Aave V2). Moola Market tracks a health factor for each depositor that measures the value of their collateral against the value of their debt. If the ratio falls below 1 (loan becomes under collateralized), then a liquidation event is triggered.
This stability mechanism ensures that Moola's lending pools are over-collateralized so that there should always be enough liquidity to allow our vaults to withdraw cUSD on behalf of a Spirals staker. On top of that, Spirals does not take out any loans on Moola Market so our underlying cUSD collateral is safe and will never be liquidated.
Today, the impact of a Spirals user can be understood as "the amount of positive climate work I've helped bring to life." Although not every project in the portfolio focuses on sequestering carbon, we use tCO2 (tons of carbon) as a base unit to understand our physical climate impact and an estimated cost of $15/ton for nature-based carbon removal.
For example, let's say we have a user who is staking $10,000 across all green token vaults (5% avg APY) and leaves it staked for a year. Then this user is contributing $500 to climate projects, which equates to 33.33 tCO2 of physical climate impact.
Conversion to other units like number of miles walked instead of driven was calculated using numbers used by an open-sourced carbon footprint calculator published by Berkley researchers:
An independent council of climate experts review each climate impact project to ensure we are listing high quality projects. This process will be eventually completely open-sourced with an opportunity for SPRL token holders to become engaged as well.
Eventually we will be, yes! Our approach to building Spirals is best summarized by progressive decentralization.
For now we are mostly making decisions as a core team to learn quickly and understand how things can be systematized. Our intention is to gradually transition the decision-making process to on-chain governance coordinated by the $SPRL token. More on that soon!
As a quick refresher, there are 3 types of projects on Spirals:
- Collection - climate impact projects funded through forward contracts, part of the default Spirals Collection
- Impact - climate impact projects, either
verifiedorpending reviewby climate council - Ecosystem - projects that strengthen the ReFi ecosystem
The fees for staking depends on the type of project you are supporting. If a fee applies, it is taken from the staking yield you earn through the protocol, which means that you will still be able to withdraw 100% of your principal deposit.
- Collection - no fees
- Impact - 2% for verified projects, 5% for unverified projects
- Ecosystem - flat 5% fee