AstaVerde

AstaVerde is a platform for trading verified carbon offsets as non-fungible tokens (NFTs). Built on Ethereum using the ERC-1155 standard, it employs a Dutch Auction mechanism for pricing carbon credit batches.

Dutch Auction Mechanism

The AstaVerde platform uses a Dutch auction mechanism for pricing carbon credit batches. Here are the key features of the auction:

• Starting Price: Each batch starts at the current basePrice (default: 230 USDC) per unit.
• Price Floor: A minimum price of priceFloor (default: 40 USDC) per unit is enforced for all batches.
• Daily Price Reduction: The price of each batch decreases by priceDecreaseRate (default: 1 USDC) per day for unsold tokens.
• Dynamic Base Price: The basePrice for new batches is adjusted based on recent sales:
  • If a sale occurs within dayIncreaseThreshold days (default: 2) of the last price adjustment, the basePrice increases by priceDelta (default: 10 USDC).
  • If no sales occur for dayDecreaseThreshold days (default: 4), the basePrice decreases according to the daily reduction rate.
• Independent Batch Pricing: Each batch's price evolves independently based on its creation time, regardless of sales within the batch.
• Revenue Split: 100 - platformSharePercentage% (default: 70%) of each sale goes to the token producer, while platformSharePercentage% (default: 30%) goes to the platform.

The smart contract owner can adjust various parameters, including:

• platformSharePercentage: The percentage of sales that goes to the platform
• maxBatchSize: The maximum number of tokens in a batch
• basePrice: The starting price for new batches
• priceFloor: The minimum price for tokens
• priceDelta: The amount by which the base price increases after a quick sale
• priceDecreaseRate: The daily price reduction rate
• dayIncreaseThreshold: The number of days within which a sale triggers a price increase
• dayDecreaseThreshold: The number of days without sales that trigger a price decrease

These parameters allow for fine-tuning of the auction mechanism to respond to market conditions and platform requirements. The contract owner can modify these values using specific setter functions provided in the smart contract.

User Roles

• Credit Producers: Generate and verify carbon offsets, listing them as NFTs.
• Platform Owner: Mints new batches of NFTs and manages the auction.
• Buyers: Bid on and purchase batches of NFTs.

Prerequisites

• Node.js and npm
• MetaMask or another Ethereum wallet
• Docker (for deployment)

Local Development Setup

1. Clone the repository:

   git clone git@github.com:orpheuslummis/AstaVerde.git
   cd AstaVerde

2. Install dependencies:

   npm install

3. Set up environment variables:

   cp .env.local.example .env.local
   cp ./webapp/.env.local.example ./webapp/.env.local

   Edit .env.local and webapp/.env.local with your specific private values.

4. Compile the contracts:

   npm run compile

5. Start a local Hardhat node:

   npm run node

6. In a new terminal, deploy contracts to the local network:

   npm run deploy:local

7. Start the webapp in development mode:

   npm run webapp:dev

8. (Optional) For automatic recompilation and redeployment on contract changes:

   npm run watch:dev

9. (Optional) For local minting:

   npm run task:mintlocal

Deployment

Deploy for an owner address

• OWNER_ADDRESS=0x... p deploy:testnet

Using Docker

1. Install Docker Desktop from https://docs.docker.com/desktop/install/mac-install/
2. Clone the repository:

   git clone git@github.com:orpheuslummis/AstaVerde.git && cd AstaVerde

3. To deploy: Configure and run ./deploy.sh
4. To mint: Configure and run ./mint.sh

Manual Deployment

1. Deploy contract on testnet:

   npm run test
   npm run compile && npm run postinstall
   npm run deploy:contracts -- --network base-sepolia

2. Set environment variables on Vercel:

   • CHAIN_SELECTION
   • ALCHEMY_API_KEY
   • WALLET_CONNECT_PROJECT_ID

Minting

1. Prepare a CSV file with token metadata and an image folder.
2. Update the .env.local file with the correct paths.
3. Run npm run task:mint

Reading Events

1. Update default values in /scripts/events/index.mjs.
2. Run npm run task:events

Updating the Contract

When updating the contract, remember to update the contract address and ABI in:

• webapp/src/lib/contracts.ts
• scripts/events/contracts.mjs
• .env.local for minting scripts

License

This project is licensed under the MIT License - see the LICENSE file for details.

Security

• The market can be paused if USDC becomes depegged.
• Always ensure your .env.local and webapp/.env.local files are up to date and never committed to the repository.