Unergy
  • ☀️Introduction
    • Abstract
    • Motivation
  • 🔃Protocol
    • Introduction
    • The uWatt: A stable currency collateralized in clean energy
      • uWatt reference value
    • Project origination
      • pWatt tokens
      • Project milestones
    • The Swap
      • Swapping pWatts into uWatts
      • External pWatt holders
      • Swap factor
      • pWatts ‘outside’ the Reserve
    • Energy tokenization and generation tracking
      • Tracking of energy monetization
      • Renewable Energy Certificates (RECs)
    • Management of funds in the Reserve
      • Collecting project income
      • Operation and maintenance expenses
      • Liquidity pool funding
      • Depreciation compensation
        • Asset value calculation
        • Asset depreciation compensation
        • Avoiding overcompensation
      • Distribution of rewards
  • 🗳️Governance
    • Overview
    • Choosing the cash flow discount rates
    • Protocol upgrades
    • Milestone validation
  • 💡Remarks
    • Types of projects
      • Self-consumption projects
      • Utility-scale solar energy Projects
    • Nature of the Unergy Protocol tokens
      • Nature of the uWatt token
      • Nature of the pWatt tokens
    • Incentives for funding Projects
  • 🚒Risks and mitigation
    • Origination risks
      • Delays in the construction or procurement phase
      • Failure to install the Project
    • Real-world funds management
    • Project qualification
      • Technical feasibility
      • Financial feasibility
    • Installer qualification
  • 📓Miscellaneous
    • Protocol implementation
    • Definitions and terminology
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  1. Protocol
  2. The Swap

Swap factor

PreviousExternal pWatt holdersNextpWatts ‘outside’ the Reserve

Last updated 1 year ago

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In order to determine the amount of uWatts that their holders receive at the moment a Project becomes operational, the Protocol , and then, the swap factor will be then calculated as:

swap factor=Asset value$uW(t0)\text{swap factor} = \dfrac{\text{Asset value}}{\text{\$uW}(t_0)}swap factor=$uW(t0​)Asset value​

Where $uW(t0)\text{\$uW}(t_0)$uW(t0​) stands for the of the uWatt at the moment of the swap.

The swap factor will also balance out the differences between the financial conditions of Projects with different types of energy generation technologies. For instance, a hydraulic power plant can provide uninterrupted power for almost 24 hours a day, producing up to 5 to 6 times the energy of a solar power plant of the same size. However, it can require an investment around 4 times bigger to originate. Hence, the swap factor of a hydraulic plant would be approximately 1.5 times (6/46 / 46/4) bigger than the swap factor of a solar power plant.

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calculates the asset value
reference value