Within an inflationary environment, #Commodities are an integral part of an all-weather portfolio, this is due to their ability to remain stable during times of instability.
Reduced volatility & diversification generally equates to reduced risk. 🎯
Within the basket of overall commodities referenced above there are also specific commodities that serve as effective hedges during market uncertainty.
🥇For example following the 2008 financial crash the precious metals rebounded quickly and helped preserve investor capital.
⚙️ Other commodities such as Oil are dependent on global supply & demand fluctuations as well as geopolitical risk within Oil-producing nations.
However, since they are an indispensable part of our global economy they can provide an effective hedge to riskier investments. 📈
🌱 Many factors affect wheat prices including climate, crop yields, oil prices. In addition to gradually and consistently increasing global wheat demand due to population increase over time.
⛈ An increase in climate uncertainty may cause the global wheat price to increase.
🔀 Comdex allows its users to take advantage of the stability of the underlying asset whilst still allowing users to earn a yield using the liquidity pool function.
Now you don’t have to choose between great #yield & a counter-cyclical hedge-like #Gold you can have both!
The Decentralized Synthetics Exchange provides Comdex users with a variety of tools to diversify their holdings whilst remaining on-chain. Bringing a whole new Utility to the @cosmos & @terra_money ecosystems.
🌏 Whatever 2022 brings our community will be ready.
In this thread, we are going to compare the rapid rise of #DeFi 📈 over recent years to the massive legacy centralized financial system (CeFi) that it aims to disrupt.
The size of the Global centralized finance markets including derivatives is an estimated 486 Trillion USD. 💰
By comparison, the 205 Billion USD DeFi is tiny and still in early adoption, so capturing even a portion of this market would mean a huge boost for the DeFi industry. 🔥
As you can see the growth in DeFi protocols has increased rapidly since DeFi's inception. 🚀
However, even with this rapid growth, the total market capitalization is still comparatively very small, compared with that of CeFi.
Learn the benefits of commodity exposure in times of global tension.🌏
📉In a world governed by unforeseen circumstances due to geopolitical or natural phenomena, risk-on assets have experienced volatility, adversely affecting the price of #cryptocurrency.
🛡Investors have shifted focus from ROI to capital preservation.
⬇️With speculative investments losing favor due to international uncertainty, the #crypto market cap over the last 3 months has realized a reduction of 41%.
🏗Commodities have appreciated 13% during the same period, proving that this reliable and much less volatile asset class deserves a spot in every investor's toolbox.
🏗At Comdex, we are on a mission to revolutionize how the world interacts with #commodity commerce.
🔧Our commitment to modernizing this industry is steadfast; we believe that the future belongs to those who work smarter (not harder).
🚢Blockchain doesn't only have the potential to transform the way it conducts commodity trading; it can also improve the way those commodities are transported.
⛓While the supply chain has enabled globalization, its weaknesses have been brought to the forefront.
📦Due to antiquated technology and physically maintained paper audit trails; legacy #SupplyChains are largely inefficient.
💻While this method of record-keeping happens to be an industry standard, there is an opportunity to gain efficiency via blockchain #technology.