Truflation Introduces Hedge Index with RWA Tracking to Safeguard Investments Against Inflation

Real-time financial data provider Truflation has introduced a Hedge Index for tracking Real World Assets (RWAs) that provides a benchmark of aggregate RWA performance over time.

In a press release shared with Cryptowisser, the team said the Truflation Hedge Index is an investment index that helps to reduce the potential for loss from Inflation, given the rise in the cost of goods and services. 

The strategy offsets losses from other investments and inflation. The Truflation Hedge Index tracks the price movements of the five core asset classes, including equities, precious metals, commodities, and currencies. The weights are as follows: Gold (25%), Silver (20%), WTI Crude Oil (20%), S&P 500 (25%), and BTC (10%). 

The team explained that the index value fluctuates throughout the day based on the underlying constituents' movements, calculated using the price movements based on the weighting contribution of each component.

While commenting on this launch,  CEO, Stefan Rust, said,

"The Truflation Hedge Index is a game-changer for investors seeking to protect their portfolios against inflation. By leveraging real-time data and diversifying across core asset classes, we provide a powerful tool that not only tracks but also mitigates the impact of inflation on investments. This index is designed to empower both traditional and decentralized finance platforms with the insights they need to make informed decisions in a rapidly changing economic landscape." 

Truflation revealed that its RWA Hedge Index also supports DeFi protocols focused on RWA tokenization. This includes products developed by Nuon Finance, Frax Finance, and Overlay Protocol. 

The index tracks the performance of RWAs over time, making it easier to gauge their value as a hedge to dollar-based investments. Furthermore, the platform’s decentralized data feeds, indexes, and oracles are used by DeFi apps to obtain accurate pricing for a wide range of real-world assets. Through the 65 data partners it has integrated, Truflation tracks over 18M items, giving on-chain protocols a reliable source of real-time data.

The team revealed that it also provides dedicated dashboards for calculating inflation in countries such as the US, UK, and Argentina. 

Empowered by Coinbase and Chainlink, Truflation stands as the foremost DRP (Definite Reference Point) for economic veracity, driving the tokenization of Real World Assets through the Truflation Stream Network: an independent, transparent, real-time data oracle. Tracking over 18 million items, the TSN is completely decentralized and censorship-resistant, enabling decentralized applications (dApps) such as DEXs to unlock boundless markets.