sENERGY - Harnessing DeFi to Propel the Future of Energy

Title of your idea
sENERGY - Harnessing DeFi to Propel the Future of Energy

Summary Description
To put it simply, we are all totally screwed if we don’t get our act together and support renewable energy. Having a token that tracks the top 20 renewable energy stocks helps accelerate the adoption of renewable energy, that’s a win for everyone and the planet. Plus, creating a token that gets behind something positive rather than the next degen hype project is great branding for blockchain. Right now there is a lot of FUD around how much energy blockchain consumes and this type of token/project can help steer that narrative in the other direction. One of the issues with some of the clean energy ETFs we have now is they are centralized and not nimble enough to adapt to an evolving market such as renewables.

Let’s bring our passion for disrupting centralized markets into the energy sector where we all benefit from a more sustainable future. Projects like Energy Web are helping to bring blockchain into solving the energy crisis but there is so much more room in our space to move the needle in such a critical sector that affects us all. The next generation of investors are seeking more than just financial returns in their investments and UMA gives us the tools to help create these new synthetic assets that we can use to improve the world and accelerate the adoption of good ideas. sENERGY could be the answer to how both the environment and the global finance sector can prosper at the same time.

Although this token by itself doesn’t solve a ton of problems, what it does do is open the door to engage with people about where our energy comes from and what type of a future we are going to live in. Achieving sustainability within energy consumption is the largest and most paramount problem our planet faces, and we’re already well behind schedule. If I’ve learned anything in my decade of conservation work it’s that if you want to inspire people to be involved in sustainability you need to make it accessible in their world. Just the fact that there’s a token where “Chads” can make some gains on the growth of renewable energy maybe enough to get them thinking about it more in their daily lives.

The timing of this token aligns perfectly with the massive budget the U.S. is allocating to reducing our carbon footprint on top of the countless other countries finally investing in renewables. We even have a Crypto Climate Accord with some of the top projects in blockchain getting involved. If that wasn’t enough we’ve designed a governance token with KPI rewards and an NFT series to help sustain the project.

Which metric will your synth track?
sENERGY is a synthetic token that represents an index composed of the top 20 stocks in the clean energy sector.

How will you get data for your metric
From NYSE, NYSE Arca and NASDAQ exchanges for each stock in the index. The initial price of the token would be based on a snapshot of closing prices at a certain date. The index would use a 2hr-TWAP to determine whether a position is collateralized or needs to be liquidated. These data sources are very reliable and a low-cost option.

What collateral would you use for this synthetic
USDC would be used as collateral and for creating the liquidity pool on Uniswap because it’s a very liquid market and using a stablecoin for something like this lowers the volatility and risk of a user’s position getting liquidated.

Describe how you would create this synthetic
We would work with a developer who’s worked with the UMA protocol and hopefully even with the Degerantive.Finance team to build the framework and contract for the token. As far as using the most accurate metrics possible the data from the NYSE, NYSE Arca and NASDAQ exchanges with the addition of a 2hr-TWAP should be reliable enough. Plus, with a 24-48hr settlement period, the data will be verifiable by multiple sources.

What issues might you encounter in the development of the synthetic
Coming to a consensus on the top 20 stocks to peg sENERGY to, we will need to define what counts as a renewable energy stock as there is some grey area in the definition. Of course, the token contract also needs to be rock solid but finding vulnerabilities in smart contracts isn’t our specialty and would need outside council on that potential issue.

How you would make sure that people who would find the synthetic useful could access it.
It would start with building a beautiful and simple website that also has a nice UX for the minting process (example below). The site would have an expansive knowledge base with helpful tutorials to alleviate any doubt in the user that they are using the Dapp incorrectly. The next phase before launch would be designing all the necessary marketing materials which would include bite-sized animations that illustrate the use case for sENERGY, walkthrough tutorials, and a nice stack of content ready for social media. We would also launch an NFT for liquidity providers, and sell a series of NFTs with 100% of the proceeds going to renewable energy projects. As a side note, I’m currently working on a conservation project that’s bringing solar energy to villages in Zimbabwe through a nonprofit I’m involved with so this idea isn’t out of leftfield.

NFT Idea
The first 100 people that provided liquidity for at least 30 days get the first 100 NFTs which are the rarest. Then there would be a second NFT made for the next 250 users who provided liquidity for 30 days. We would then create a series of NFTs that highlight different types of renewable energy (I promise they will be fresh) and sell them with 100% of the proceeds going to support nonprofits helping to bring renewable energy to developing nations. I think people would rally behind an NFT made solely for the good of the planet and there haven’t been too many people that have done that in crypto.

Further Thoughts: Governance Token or KPI Option
I need to do more research on the KPI options that you can create using UMA’s protocol but it would be interesting if you could also create a kENERGY token that provided governance on what stocks made the index and also rewarded LP’s for certain KPIs based on the growth of renewables. I’m not positive on all the possibilities of a governance token but airdropping a certain amount of tokens each quarter based on KPIs would be a cool option rather than also creating an option token. Regardless, creating governance would help motivate the community/holders to continually evolve the index to maximize growth and exposure to the renewable energy market. If the governance token was called kENERGY I can picture the degens loving a token with a smiling Ken doll face… Like the suave version of the wallstreetbets kid or the depiction of all the Chads out there. Another area where rewards could be expanded is with $UMA and $YAM rewards for providing liquidity but I’m not sure how Degenerative.Finance was able to arrange that.

Distribution of kENERGY
By integrating Blockzero’s Claims Dapp we could have a place on the website where people could claim their kENERGY tokens. For the launch, we could aim to provide a certain amount of $kENERGY to current $UMA, $YAM, $uSTONKS, and Energy Web LPs. From there rewards would be distributed to LPs and sENERGY holders based on KPIs of the index.

Website & Logo Mockup
I know this wasn’t mandatory for the contest but my brain started envisioning how sENERGY could look as a brand so I designed this simple homepage mockup.

10 Likes

Love your designs by the way (the canabis one also looked great). My only concern with the sEnergy would be why wouldn’t a traditional investor just buy the top 10 or 20 renewable energy stocks on the stock market?

If you were thinking of mixing a global basket of energy stocks I can see why that would be unique for say a USA investor who can’t get exposure to international energy stocks (and would definitely appeal to retail investors although there may be tax issues involved if they own say european energy stocks?).

I also thought a basket of crypto energy efficient stocks would be super cool (you mentioned energy web token etc.) - perhaps you choose a few bitcoin miners as well (those that say use green energy to mine their BTC)? Anyway - cool concept!

3 Likes

Glad you like the designs and thanks for the comment. I started this idea thinking of proposing a basket of global energy stocks but paired it down to US because I didn’t know where I would pull the global data from. I agree global would be awesome. Also, I like the idea of a basket of green crypto projects!

3 Likes

Hey,

I am making a study around DeFi, sustainability, and how we can connect them together to transfer a portion of value from degens to regen projects.

Your project totally match with the kind of solutions I’m looking for. Would be happy to connect and share our respective knowledge and ideas around that.

Oh and BTW, I’m a fullstack web3 developer, if you need any help with this I can give a hand.

4 Likes

100%! A developer that shares the same passion for sustainability would definitely make for a much better product. My brain has been pondering how to as you put it turn degens into regens. The same invitation goes to you if you need some help with a project like this. If this idea wins their accelerator contest there is a chance it might get some love to become a real thing.

Also, Mooni looks very interesting and the branding is rad! Thanks for reaching out.

4 Likes

Very cool idea and I love the approach to accelerate renewable energy. :clap: :clap: :clap:

The NFT and giving back elements of this are also great to see. We need more of that in crypto!

4 Likes

Love this idea! I hope this becomes a real token!

1 Like

Hey @pacobacpac

I was chatting to the XIO Folk yesterday and we are really keen to get the winners of the XIO accelerator programme turned into actual products,

@JBdiscord Whats the best way to push this forward, I’m happy to support from the UMA side.

1 Like

Awesome news @Mhairi-UMA and I actually just started chatting with @pacobacpac about this.

I think we could make this happen and thanks so much for the support. :raised_hands:

Give us a little bit of time to put our ideas together and map some stuff out and then would love your support on the UMA side. Cheers!

@JBdiscord, @pacobacpac

We just got an approach from these guys, and I thought of youse.

"The Climate Accelerator Program will accelerate the growth of 10-14 of the best climate tech start-ups, and kick off in a digital format in October this year. Through the program, we will provide selected start-ups with growth specialists, technical expertise, an investment with ticket sizes ranging from $150,000 - $400,000, and access to an extensive global network!"*

" We are looking for climate-tech start-ups that are committed to reducing greenhouse gas emissions through the following areas:

  • Renewable energy and storage
  • ‍Smart cities, industry, and clean mobility
  • Carbon capture, reduction and enablers
  • New Frontiers within Climate-Tech

Unsure if you’re a match, but know that your company has a positive impact on the climate? We still encourage you to apply through our short application form, and we will review if your solution matches our investment criteria."

1 Like

Thank you so much for sharing! @pacobacpac and I will look into it.

Have an awesome day!

Bro im blown away enthused to comment, your passion is undeniable. Thank you for caring about these things and wow you have taken on a big one. I trust your Passion will go a long way too find the most harmonious solutions. Passion is like a fire that creates and illuminates making what seems impossible or completely unknown, come into the realms of possible and more known.

I am new to the whole blockchain space so have nothing to contribute regarding the best technology to bring sustainability/renewable energy and investors/finance sectors together however my experience with big challenges and technology tells me that the technology will become clear once I have 100% checked that I clearly know the facts of the root cause and effect. Usually its very different to the obvious that the majority would unconsciously agree with and most shocking to the one who discovers the root cause as it nearly always closer to home then expected, in my observations. That is why the passion for change is there in the first place strangely enough.

Either way when you know what the 100% facts of the root cause and effect is, then you can more easily know what action will have the most harmonious effect (the harmony in each seemingly opposing sector is already there in both individually), the technology, steps and people required to support, multiply, amplify, connect your solution will become clearer then as well, in my opinion.

All the best in your journey

Thanks for the kind words! I hope blockchain can help solve many of our issues around sustainability and I’m so excited to go along for this ride. Cheers, and welcome to the blockchain space!

Just to let you know that we have a hackathon coming up later this month.

I think this is a great idea, and would be fantastic to see it turned into a product.

1 Like

Thank you so much for sharing and I will look into the hackathon today. Cheers! I really appreciate the motivation :pray:

I found your Medium article talking about the Hack Money Hackathon in June, can you point me where we can find more details about the hackathon? Cheers!

We should have more info on it soon, but in the meantime, here is the Hack Money site.

1 Like

Thank you so much for sharing the link :grinning: