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.
🏗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.