ℹ️Introduction
xParametric is a decentralized climate prediction market that transforms our approach to climate risks. It provides a platform for individuals and organizations to engage in climate risk management by enabling them to transfer and invest in climate risks through DeFi mechanisms.
xParametric also fosters greater climate concern, support and knowledge through individual participation in our climate prediction market. It provides a financial incentive for participants to stay informed about climate change, gives them a direct stake in the outcome of climate-related events, and creates a feedback loop that reinforces the importance of climate action.
By combining financial incentives with heightened awareness, xParametric drives climate-positive actions and promotes collective efforts towards addressing climate change, reducing GHG emissions and building a sustainable future.
Features
Insure against or Speculate on Climate Risks
Participants can trade outcome shares that represent climate risks such as rising sea levels, increasing temperatures, and extreme weather events. Our Fixed Product Market Maker (FPMM) facilitates the buying, selling, and holding of these shares, enabling you to make decisions based on your own beliefs.
Our platform also allows users and institutions to transfer climate-related risks. For example, a coastal homeowner can purchase outcome shares that yield a payout if there is a hurricane or flood. This creates new opportunities for insurance companies to diversify their portfolios across a wide range of climate-related events.
Raising Climate Awareness
Participation in prediction markets has been shown to enhance awareness and concern about global warming. A recent study by Cerf, Matz, and MacIver (2023), published in Nature Climate Change, found that individuals who participated in these markets exhibited increased awareness and heightened apprehension about the impacts of global warming.
Our platform incorporates real-time climate data visualization and a climate news feed, immersing users in the most recent research, policy changes and global developments. Equipped with these timely insights, users can make informed predictions about climatic changes and their potential impacts.
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