Automated Regression Market Maker (ARMM)
Until Tolam Earth, carbon offsets were commoditized and traded with limited ability to audit or trace them consistently. We offer a “first-in-the-world” solution for the voluntary carbon markets.
With Tolam, purchasers have access to more options, affordable pricing and a high-quality supply of offsets to choose from. But how do carbon offsets get priced in a way which highlights their uniqueness and maximizes value? This is why we built the “Tolam Automated Regression Market Maker“ or ARMM.
Tolam ARMM's Role
The Tolam ARMM examines the auditable attributes of each individual carbon offset. It identifies the hundreds of thousands of substantially similar data-driven assets and makes them available for search, aggregation, and purchase.
Our ARMM uses machine learning to form pools of related pool digital environmental assets and further recommends a price for the assets. The substitutability of partially fungible goods changes with the demand context. For example, if a business wants to purchase a solar energy asset produced in the Pacific Northwest in the United States, the asset the buyer wants would not be substitutable for a credit produced in Asia.
The ability to identify assets by attributes such as location of production or type of production is not only necessary for many purchasers, but could also have a huge impact on the valuation of those assets.
The ARMM will drive optimal liquidity and pricing with its auto-purchasing mechanisms — enabling efficient price discovery for highly complex arrangements of attributes such as project type and geographic location.
This ARMM technology simplifies the process for corporations to make large, secure purchase decisions in order to meet carbon reduction, neutrality, or net zero goals.
The ARMM’s functionality for buyers and sellers is shown in this video.