🌍 Carbon Markets Meet DeFi

**Single staking for $kVCM is now active** on HydrexFi following the recent epoch flip. Users can participate by visiting [hydrex.fi](http://hydrex.fi) to access the new staking functionality. **Key partnership benefits:** - Automated yield-generating liquidity strategies - Enhanced $kVCM liquidity markets - ve tokenomics integration The collaboration aims to strengthen liquidity through HydrexFi's specialized DeFi infrastructure. For detailed information about the platform and staking mechanics, users can review the documentation at [docs.hydrex.fi](http://docs.hydrex.fi).

**Klima has fully committed its veAERO voting power to kVCM pools on Aerodrome Finance.** The allocation breakdown: - **USDC/kVCM pool**: 3.3 million votes - **USDC/WETH pool**: 1.9 million votes This represents a shift from the previous 50/50 split between WETH and USDC pools announced in October. **The team is transitioning focus to the USDC pool** as they prepare for the **Klima 2.0 Protocol deployment** scheduled for this winter. This strategic move signals Klima's preparation for their next major protocol upgrade while maintaining strong liquidity incentives for their carbon-backed token. [View kVCM pools on Aerodrome](https://aerodrome.finance/liquidity?query=kvcm)

**Carbon markets reached $100 billion in 2024**, funding critical climate projects worldwide. These markets bridge financing gaps for emerging economies, potentially doubling global climate ambition by 2035. **Real-world impact examples:** - Indonesia's Katingan Peatland Project: 149,800 hectares restored, 7.5M tons CO2 avoided yearly - Myanmar mangrove restoration: 15km coastline strengthened, 45K tons CO2 captured annually - Timor Leste forestry: 100K+ trees planted, 150+ jobs created **Current market challenges:** - Opaque trading dominated by over-the-counter transactions - High intermediary fees reducing project funding - Fragmented liquidity across siloed infrastructure **Blockchain solutions** like KlimaDAO aim to address these issues by moving carbon trading onchain, improving transparency, and scaling capital flow to climate projects.

**Klima 2.0** launches tonight on Aerodrome, introducing fee-free carbon market infrastructure after years of development. **Current carbon market problems:** - Transaction costs exceed 100% of trade value - Broken trading infrastructure kills market confidence - Hidden markups reduce efficiency **Klima 2.0 solutions:** - End-to-end carbon market technology - Transparent pricing with zero extractive fees - Community-driven governance for portfolio curation - Seamless credit integration and retirement process **Two-token system:** - **$kVCM**: Risk-balanced portfolio ownership token that mints when acquiring carbon, burns during retirement - **$K2**: Fixed-supply governance token that shapes pricing and earns protocol incentives The protocol operates autonomously through algorithms and token inputs, adapting to carbon market changes. All financial value flows to token holders through incentives. **Key features:** - Auditable and community-driven - No VCs or insider allocations - Built specifically for carbon market complexity - Transparent pricing at all times Klima aims to create a lasting operating system for carbon markets, anchored in real-world credits and governed by users. [Learn more](http://klimaprotocol.com)