Place/Date: - August 14th, 2022 at 4:19 pm UTC · 4 min read
Last week it was reported that inflation figures in the UK could hit 13%, the highest many will have seen in their lifetime, and has added further uncertainty to an already troublesome market. To combat this the Bank of England increased interest rates to 1.75%, the largest hike in over two decades as they look to counteract an inflationary climate.
However, while monetary policy is often an effective measure, the meritocracy of the measure should be put into question as those who are middle and working class are hit hardest by the measures. Those who have loans and mortgages will see their repayments increase, while those who have money in the bank will see the returns on their holdings increase.
When those who have enough wealth to not be badly affected by inflation are also the ones who are set to benefit the most from increasing interest rates, it begs the question of whether these measures should even be introduced in the first place, and if they are, what countermeasures will be added to ensure those who were already struggling with a cost of living crisis are protected?
Nevertheless, although there is great uncertainty from the inflation figures, the crypto market has not been affected and in fact, has expanded in recent days. Many argue that crypto is the best way to hedge against inflation and protect your assets so to some this is unsurprising.
However, this probes the question of which assets are the best to hedge with which is what we will analyse across the remainder of this segment, specifically looking into Polygon (MATIC) and Youniverze (YUNI).
Polygon (MATIC) saw its best performing month since the entrance of the bear market as the token rose around 90% last month. This was fuelled by reports of whales entering the layer-2 protocol, seeing an asset that was grossly undervalued given the utility the network has and the potential adoption of the protocol moving forward.
Polygon is a Layer-2 scaling platform on the Ethereum (ETH) network and gives developers an easy-to-use platform for developing dApps that is compatible with the Ethereum blockchain. The platform aims to avoid the scalability issues that many have encountered on the Ethereum blockchain citing congestion and high fees as a bottleneck for further developments.
With over 19,000 dApps already powered on the network according to the Polygon Blog the potential is high for MATIC and could offer investors a good option to hedge against inflation and protect their underlying net worth.
Another potential hedge against inflation is a new protocol Youniverze (YUNI). Yuniverze’s primary use case is as a swapping protocol that sweeps the market to find the best liquidity provider at the lowest slippage, ensuring that the end users get the best rates.
What this enables is added competitiveness as the user will always get the best market price and will improve meritocracy in an ecosystem where it is not uncommon to experience high slippages when swapping tokens.
Moreover, Youniverze will simplify the process with its innovative and easy-to-use UI with the platform looking to promote the best user experience possible as hot wallets and some DEXs can often be filled with jargon, difficult to interpret, and in many cases too difficult for new users to use.
The coins native token, YUNI is embarking on its presale at the time of writing and is providing an incentive scheme to invest early by rewarding presale investors with an allocation of YUNI depending on how much you invest.
With the DeFi ecosystem set to be the bedrock of crypto a swapping mechanism that provides users with the best rates is set to be in demand.
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