Hey Everyone,
Welcome to this week's edition of the DEXTF Newsletter!
You can follow the community conversations on Discord, Telegram, Twitter, and Reddit!
DEXTF updates
DEXTF’s approach:
How to create a fund (and launch it) in one step!
Great write-up published on DeFi Pulse on the v2 rollout, with focus on UX/UI phase 1:
Eager to hear more from you on what can be improved/corrected on front-end:
Also, DEXTF is hiring! If you think this is you, reach out to us. DMs are open.
Portfolio Metrics
[As of 24th Jun 2021].
Please refer to the DEXTF website for the latest APRs:
DEXTF/ETH is offering 70% APR
XTF/DEXTF is offering 95% APR
You can also earn $DEXTF by providing liquidity on Uniswap (29.6K tokens daily) or investing in any of the XTF funds (12K tokens daily)
Current TVL is US$ 2.2M (refer to DeFi Pulse)
You can invest by buying on Uniswap or on the DEXTF app
Here’s a quick guide on how to buy
Concept of the Week
⚖️ What is the Green Economy?
The Green Economy aims to achieve sustainable production and consumption by improving the methods to reduce emissions.
We can achieve this through three primary levels:
1.Macroeconomic
2.Financial/Tech
3.Regulatory
Let's go through each of these levels and how this impacts crypto.
Macroeconomic
Trade policies play an essential role in the pursuit of sustainability.
The European Union has set an ambitious target of decreasing emissions by 55% from 1990 to 2030.
As legislation intensifies towards the green and circular economy to encompass everyday life makes the plan ever more achievable.
Starting from 2023, EU importers of goods will have to deal with the CBAM, or Carbon Border Adjustment Mechanism. A CBAM works very much like a tariff on foreign goods and, as such, has the followings benefits:
Protects domestic production
Increases tax revenue for EU
Forces non-EU factories to implement corrective actions to catch up
Financial/Tech
The EU, back in 2012, introduced the ETS or Emission Trading System, which would require both EU and non-EU airlines to monitor and report CO2 emissions from their flights. Each airline is provided an allowance that is deducted against their emissions.
To give a clearer picture, a return flight from Singapore to Tokyo creates the same amount of emissions (616.2 kg/journey) that an average person does in the EU through their home heating system in a year.
This policy has helped to reduce 17 million tons of CO2 equivalents per year in the aviation industry since the program's inception.
On the other hand, Bitcoin mining generates around 23 million tons of CO2 equivalents per year.
To tackle this issue, DEXTF, in partnership with Moss.Earth, a Brazilian tokenized carbon credits issuer, launched the first Green Bitcoin (XTF.GBTC), which pairs 1 unit of WBTC with 4 units of MCO2, a combination that offsets the emissions from the intense calculations to solve and create new blocks to house Bitcoin transactions.
Regulatory
There's often an illusion that regulation has a limited reach, primarily if it targets specific industries.
It always starts locally, only to pervasively touch all industries by putting the onus on the importer to check and verify whether it complies with the regulations.
The EU has effectively decentralized the oversight of emissions compliance by delegating the verifications to a distributed system of importers that will make sure that all goods imported originate from compliant sources; else, a fee is paid.
Conversely, the same effect is achieved through the little-known yet potent US government agency under the Treasury Department, OFAC, or Office of Foreign Assets Control, which has oversight on all things denominated in USD.
So long as you choose to transact in USD, you fall under their jurisdiction and have a higher than zero probability of getting sanctioned.
All in all, decarbonizing the economy may very well be a moralistic attempt to save the world; however, it is also an essential but expensive weapon that prosperous economies can afford to use to eliminate the competition.
But beware, the Green revolution also increases the much-needed information asymmetry to propel big players' profits. For example, a recent Bloomberg article reported that ESG-labeled ETFs are so opaque that investors won't even know that they could be buying into greenwashing opportunities.
Greenwashing is the practice used to deceive the public concerning a product/company about its sustainability and environmental-friendliness.
With DEXTF, you'll always be able to verify whether a fund is ESG compliant or not.
The GBTC was a first, but this is only the beginning.
Read more here:
Semper Fortis
DEXTF Team