Lemonade’s Insurance dApp to Protect Farmers Amidst Climate Change

The non-profit arm of Lemonade, the Lemonade Foundation, has announced that it will extend its support to vulnerable farmers who have been severely affected due to climate change.

The Lemonade Foundation has always thrived on making social and environmental effects through technology. Nothing else could have been more honorable than helping farmers who are in dire need of assistance. For this purpose, the Lemonade Foundation has formed the Lemonade Crypto Climate Coalition.

Background

Avalanche is technically leading the blockchain industry with its super-fast performance in terms of smart contracts. This has been derived by measuring the performance from time to finality. As a platform, Avalanche excels when it comes to offering services at a lower cost without leaving a lot of negative impressions on the environment.

With Avalanche as a partner, many clients remain assured of outperforming their competitors in the market. Clients find it easier to deploy their products on Avalanche, making it more favorable for others to opt for the platform.

New Age Insurance For Farmers

What the Lemonade Crypto Climate Coalition provides will be entirely different from the traditional insurance offerings.

It has been constructed as a Decentralized Autonomous Organization, also known as DAO. The Lemonade Crypto Climate Coalition will be able to build and distribute its parametric weather & instantaneous insurance products to the farmers at the cost price.

Livestock keepers who are working in the emerging markets will also be able to avail themselves of these benefits subject to how open they are in adopting the new technology.

The Lemonade Crypto Climate Coalition has been formed by partnering with Chainlink, Avalanche, Etherisc, DAOstack, Pula, Hannover Re, and Tomorrow.io. Initial capital will be brought in by the Lemonade Foundation, following which other partners will chip in to fund its liquidity pool.

Through this dApp, farmers will be able to transact the required payment through their mobile devices. They will be able to utilize any global stablecoin or local currency. It is similar to traditional banking, and the payment system is widely followed in the traditional market.

Africa will be the first continent to experience the rollout of the Lemonade Crypto Climate Coalition. It is expected to conclude the rollout of the dApp within the next 12 months.

Daniel Schrieber, the Director at the Lemonade Foundation, recalled that the Lemonade Foundation was established to bring out exponentially-impactful technology. He stated that the foundation is now expected to harness the communal and decentralized aspects of Web3.

John Wu, the President of Ava Labs, highlighted that Avalanche was an ideal choice as it utilized the energy consumption of only 46 U.S households as compared to Ethereum, which utilized the energy of 1.6 million U.S households.

Rose Goslinga, a Co-Founder of Pula, talked about why Africa is being focused on the initial rollout of the dApp. Rose Goslinga stated that since Africa had around 300 million smallholder farmers, it was crucial for the coalition to focus on the continent on a priority basis.