Novel carbon trading mode based on automated market maker

Abstract

The climate issue has attracted attention all over the world. Building and developing the carbon trading market is an important measure for countries to realize low-carbon transition. However， as a new kind of market， the carbon trading market faces the problems of insufficient data trust and liquidity. Firstly， traditional trading modes， such as order book， inquiry， and auction modes are analyzed， pointing out that they cannot solve the problem of insufficient liquidity. Then， by drawing on the concept of virtual energy currency， carbon assets are digitized through blockchain to solve the problem of trust in carbon assets and trading platforms. After that， a carbon trading mode based on automated market maker is proposed to increase the liquidity of the market. Finally， a carbon trading prototype system based on automated market maker is developed and the effectiveness of the proposed mode is analyzed by case studies.

Keywords

• carbon market
• carbon trading
• blockchain
• automated market maker
• energy virtual currency