# $aCO₂ Wrapping Zone

To make $aCO₂ trading scalable and user-friendly, Sproutly will introduce a dedicated section of the marketplace powered by a wrapping mechanism, powered by[ waco2.com](https://waco2.com/).

**How it works:**

* Users can deposit $aCO₂ (ERC-1155) into a smart contract vault
* In return, they receive waCO₂ (ERC-20) tokens at a 1:1 ratio
* waCO₂ can be:
  * Traded freely on the marketplace and other DEXes
  * Returned to the vault at any time to redeem the original $aCO₂ tokens<br>

Trading $aCO2 on the Sproutly DEX incurs a 1% fee, half of which is used to offset the DEX’s own activity through an $aCO2 burn. This model makes high-volume trading of CO₂ debits smooth and compatible with existing DeFi tools.

**Implications**

* ERC-1155 limitations (wallet clutter, UI issues, gas overhead) are bypassed
* waCO₂ is fungible, clean, and scalable
* Transparency is preserved: each waCO₂ token is backed 1:1 by verifiable $aCO₂ stored in a public vault
* Enables DEX and CEX listings in the future without protocol restructuring

### Ecosystem Impact

* Marketplace trading fees help fund new Saplings and planting efforts
* Asset scarcity and decentralised distribution increase long-term value

Wrapped tokens expand reach beyond Sproutly into mainstream DeFi liquidity (green bonds)