Mycelium Integrate Truflation Index to Launch the First-ever Inflation Perp Pool | Truflation

Mycelium Integrate Truflation Index to Launch the First-ever Inflation Perp Pool

Published 07 Jun, 2023

We are thrilled to announce a new project that will enable us to bring a fresh and intriguing opportunity by launching an innovative inflation pool.

Background

Mycelium (previously known as Tracer DAO) is a decentralized perpetual protocol specializing in blockchain data.

The protocol empowers participants to use risk management tools. Truflation was developed on similar foundations: helping users navigate a challenging macroeconomic landscape better, using unbiased, verifiable data on-chain.

A Pool for Managing Inflation

This endeavor marks a progressive stride in inflation management and comprehension, culminating in the creation of a pioneering inflation pool.

It allows positions to be opened based on anticipated changes in the inflation index.

This novel innovation has significant implications. The Truflation index has traditionally served as a means of obtaining a sophisticated, accurate perspective on inflation trends by empowering planning using trustworthy and current data.

Through this exciting launch, the Truflation index now forms the focal point for tangible risk management.

This amalgam of opportunity and real-time, reliable data presents an innovative approach to understanding and managing inflation in the market.

How will this work?

Using Perpetual Pools, users have the opportunity to take either a short or long position on an underlying asset.

During this process, users generate fungible tokens that signify ownership of the asset pool. The underlying price feed determines the transfer of value between the long and short sides of the collateral pool.

Users can provide collateral on the long side, mint an L-token, or opt for the short side and obtain an S-token.

The value of these tokens is contingent upon the amount of collateral held on each side of the pool.

For users who don’t have any experience with Perpetual Pools, here is an overview and a quick start guide: https://pools.docs.mycelium.xyz/perpetual-pools/readme

In the case of this specific pool, there are some distinctions. Rather than a BTC/USDC pool, for instance, there is now a USD/Truflation pool.

This implies that users have the option to take either a long or short position on the Truflation number, which is updated daily using over 10 million data points.

The Truflation Index has been created to offer the most objective, decentralized, and frequent inflation updates possible. The index breaks down the categories and subcategories of goods in the CPI basket to accurately reflect actual spending. It also replaces current data with carefully selected data sets from our team or partners.

In contrast to the CPI, the Truflation Index:

  • Measures daily changes in inflation using the latest data available from independent, commercial, and public data providers.
  • Adjusts the subcategories within categories of goods and services.
  • Substitutes the BLS data for categories and subcategories with daily price updates.
  • Since June 8, 2022, used independent data weights based on extensive consumer expenditures from the 2021 census, mini census, and high-quality consumer and merchant surveys.

As a result, it provides a more accurate reflection of consumer spending habits and real market price changes.

When the index is updated, all participants with long or short positions compensate each other based on whether the index value rises or falls.

Pioneering the Evolution of Inflation-based DeFi instruments

We continuously develop key tools that pave the way for a new era of inflation-resistant DeFi products.

Truflation’s robust data - ranging from the inflation index to enhanced economic data feeds - empowers our users to hedge against inflation and manage their portfolios effectively.

In addition to this, users now have the opportunity to leverage their understanding of inflation fluctuations. Tracking the Truflation index, which updates daily, provides an optimal strategy for users when establishing a position.

Privacy Policy | © 2023. Truflation - All Rights Reserved.