Spendless provides a gateway for Decentralised Finance (DeFi) transactions and enables users’ money to be put to work to generate interest to be directed towards charitable causes.
Spendless users can deposit DAI to donate interest to a campaign of their choice. At the time of writing, there are four campaigns on the Spendless website. Once deposited, the DAI is sent to Compound where it earns dynamic interest every block. Then, using the rDAI protocol, the interest earned is separated from the initial deposit and redirected to a chosen wallet address.
This functionality has been achieved by utilizing smart contracts built on Ethereum, and by striking up partnerships with a number of organizations that want to tap into the growing world of DeFi and the exciting innovations taking place there.
There are three important infrastructure pieces to making Spendless possible:
- DAI, a United States Dollar stablecoin (which means its value is pegged to the US Dollar~$1)
- Compound, a lending platform with interest generated dynamically
- rDAI, which is a protocol that enables the interest to be directed elsewhere, without losing any control of the original amount.
When users choose to support Offsetra’s campaign, 95% of the interest generated will be sent to Offsetra to fund high-impact, certified carbon reduction projects. Five percent will be sent to the rDAI development fund. Offsetra’s current portfolio of benefactor projects consists of the following:
- Agrocortex REDD Project: Forest protection projects in the states of Acre and Amazonas in Brazil. The primary objective of the Agrocortex project is to avoid the unplanned deforestation of the 186,219 ha project area, consisting of 100% Amazon rainforest. The project also enables the protection of the Amazon’s rich biodiversity by paying for surveys and monitoring
- Bull Run Forest Carbon Project: Forest Protection in Moutain Pine Ride, Cayo District, Belize. The Bull Run project aims to protect 4,650 ha of tropical forest and grasslands — the area contains 15 IUCN listed endangered species! The project also enables the retention of local jobs in monitoring, maintaining and patrolling in the region.
- Cerro de Hula Wind Project: Santa Ana & San Buenaventura Municipalities, Honduras. This project is the first grid-connected wind energy project in Honduras and has helped electrify a rural region, and catalyse social and economic development in the area. Honduras to this day has one of the lowest rates of access to electricity in the Americas.
Offsetra publically retire carbon credits from these projects on the Verra Registry to demonstrate the ESG impact that users of Spendless are making possible.
Through this product, Spendless are supporting 3 other projects, alongside Offsetra:
To learn more about Spendless, check out their article Spendless Explainer.
To learn more about Offsetra’s activities in the decentralized finance space, head over to their knowledge base, here.