Truflation Launches Hedge Index With Arbitrum Grant to Monitor RWAs

Financial data modeling platform Truflation has launched a new data dashboard and this one has a specific crypto slant. While the assets it tracks are primarily of the real-world variety – plus BTC – the data it includes is partially for the benefit of protocols tokenizing RWAs. The Truflation Hedge Index provides up to date prices on a number of traditional assets and shows their value as an alternative investment.

RWAs Get the Truflation Treatment

The Truflation Hedge Index is a useful tool, not only for RWA tokenizers, but for investors seeking to gauge the performance of alternative assets over time against the USD. The index tracks the price movements of core asset classes including equities, precious metals, commodities, and currencies and has the following weighting: Gold (25%), Silver (20%), WTI Crude Oil (20%), S&P 500 (25%), and BTC (10%). 

Due to the constantly shifting prices of these assets, the value of the index changes frequently. Zoom out over a long enough timeframe and it’s possible to get a handle on how well these RWAs perform against traditional currencies and to determine their suitability for hedging other investments. The index draws its data from multiple sources and includes a number of DeFi protocols such as Nuon Finance, Frax Finance, and Overlay Protocol that specialize in RWAs.

Arbitrum Courts RWA Tokenizers

The Truflation Hedge Index was created with the aid of an Arbitrum grant and reflects the L2 network’s conviction in RWAs as a major web3 vertical that’s suited to being hosted on its EVM chain. Arbitrum has already earned a reputation as arguably the best L2 for trading onchain perps and it’s fast gaining the same rep for RWAs, which have found its infrastructure and grant programs receptive to the tokenization of real world assets. 

Explaining the rationale behind the Hedge Index, Truflation CEO Stefan Rust said: “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.”

While Truflation has deep ties to web3, much of the data it sources comes from TradFi. It specializes in delivering financial data onchain, ensuring that it is decentralized and verifiable, and allowing protocols to build with Truflation APIs and access up-to-date information about major global markets. Prediction markets, lending protocols, and perps platforms all make use of Truflation data.

Demystifying Global Inflation

As its name suggests, Truflation started out as a modeler of inflation data, particularly for the US market. Inflation can be a hard concept for consumers to get a handle on since it encompasses many things and yet is non-tangible. Truflation has simplified inflation tracking through the creation of dashboards that allow the cost of living to be calculated in countries such as the US, UK, and Argentina. It’s also launched a Big Mac Index that tracks the cost of the McDonald’s burger around the world, a popular means of gauging global living costs.

The release of the Hedge Index provides another useful dashboard that intersects DeFi and RWAs while providing traders with a helpful means of monitoring how BTC, precious metals, and oil hold up against the US dollar.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.