Through the formation of a new partnership, Truflation, and Sphinx will work to improve RWA, as Truflation will now power Sphinx’s DeFi market.
Sphinx and Truflation have announced a strategic partnership to unlock the potential of perpetual contracts for Real-World Assets (RWAs). This partnership represents an initial stride toward integrating blockchain technology with conventional financial instruments.
Truflation will conduct an AMA on X on October 9 at 17:30 CET to provide additional information regarding this collaboration.
Advantages of the Sphinx and Truflation Partnership
Sphinx, an exchange specializing in perpetual futures contracts and based on Decentralized Finance (DeFi), has strengthened its crypto roots. Sphinx intends to broaden its product line to encompass RWAs by collaborating with Truflation, a pioneer in real-world asset indices and inflation data.
The pricing and economic data for RWAs will be kept accurate and current through Truflation’s data feeds in this partnership. This is essential for the valuation and execution of perpetual contracts. Similarly, the partnership will combine Truflation’s real-time data with Sphinx’s perpetual trading model. This will enable users to access traditional assets, such as commodities and real estate, as previously described.
Furthermore, the partnership will enable Sphinx to offer options trading for a variety of highly sought-after assets, thereby advancing the energy sector. More specifically, the electric vehicle sector will be affected by this product by the trading of commodities such as lithium and silicon.
In conjunction with Truflation’s data indices, the Sphinx trading platform will also open up new opportunities for speculators and hedgers in the trading community. Similarly, investors can protect themselves from volatility by incorporating Truflation’s inflation data. This will guarantee that the contracts accurately reflect the real-world value of assets as per the design.
This action will increase users’ efficiency, transparency, and liquidity as the DeFi ecosystem develops. Additionally, it will reinforce the significance of decentralized finance in the future of capital markets. Truflation has identified a niche that can contribute to the growth of emerging markets despite numerous RWA protocols.
Truflation Introduces Hedge Index
Traflation implemented a Hedge Index last month to assist investors in safeguarding their portfolios from inflation. This index solution functions as a performance benchmark for investors and monitors RWAs. It provides a diversified approach to mitigate the impact of inflation on investments, as was previously reported.
The Truflation Hedge Index is composed of the S&P 500 (25%), Gold (25%), Silver (20%), WTI Crude Oil (20%), and Bitcoin (10%). A balanced hedge against inflation was established by weighting these assets. The index’s value is updated continuously throughout the day. The value indicates the price fluctuations of these components, which assists investors in mitigating the risks associated with inflation.
In the interim, Truflation’s services surpass the Hedge Index. The company also offers customized dashboards for monitoring inflation in various countries, such as the United States, the United Kingdom, and Argentina. These dashboards are a component of Truflation’s mission to publish economic data applicable on the blockchain.
They propose alternative metrics to mitigate the constraints of conventional indices, such as the Consumer Price Index (CPI).
These advancements enhance the decision-making process for policymakers, businesses, and individuals, thereby fostering a more resilient and informed economy.