Legacy Model
Static-Rate Carbon Loan
Rate is fixed at origination. Quality drift stays invisible to the lender until the next manual review, often 6 to 12 months later.
Rate re-pricingManual, quarterly+
Reaction to quality dropDelayed / none
Reaction to quality gainNo borrower benefit
Under-collateralization riskCarried by lender
RealWorld Model
Dynamic Carbon-Rate Engine
Rate is a function of live dMRV data. The smart contract adjusts automatically. It protects the lender and rewards borrowers who hold high-quality credits.
Rate re-pricingReal-time, on-chain
Reaction to quality dropRate rises instantly
Reaction to quality gainRate falls instantly
Under-collateralization riskPriced continuously