How Can Blockchain Be Used To Track And Mitigate Inflation

In this Twitter space by Shade Protocol, host Dalton, Fisco, and Carter Woetzel, lead researcher & economist from Shade Protocol, speaks with Stefan Rust, a serial blockchain entrepreneur.

Stefan explains about inflation, how he came to build Truflation and Nuon, and many other topics including education and mass media’s support of crypto.

Read our notes below to learn more.

* Shade Protocol has no exposure to FTX.

* Stefan has no exposure to FTX and Solana.

* Carter says if everyone was doing self-custody and interacting with DeFi, none of this would happen.

* DeFi has much higher regulatory standards than CeFi.

* FTX is regulated and operating within existing regulatory frameworks.

* DeFi is at higher operational standards with blockchain, wallet monitoring, and open sourcing.

* Previously CEO of, building p2p payments.

* Felt the need to do more when the government started QE and did not believe that there is no inflation and it was going to be transitory.

* Started Truflation, that tracks the cost of living accurately.

* Truflation now tracks data from over 50 sources and 18 million items daily.

* This built the foundation for Nuon, a flatcoin concept of pegging a synthetic asset to cost of living that is calculated by Truflation.

* The Bureau of Labour and Statistics (BLS) calculates inflation based on an old framework defined before the computer and internet age.

* Government is calculating it with a very analogue model

* Only tracking 60,000 items, and doing panel surveys to a set of households instead of using census base data.

* Felt that it is significantly flawed and they could do better as a community to track and monitor inflation.

* Truflation tracks inflation daily compared to the government’s monthly reports.

We are all having trust issues with centralised exchanges this week so we have partnered with the Ledger, who is the industry leader and most trusted vendor in the hardware wallet space.

Using a hardware wallet is the smartest way to secure your assets.

Act now, click the link below and secure your crypto.

* Truflation acts as a price oracle for Nuon.

* As of 1 July 2022, Nuon is pegged to USD 1:1. From there, 1 Nuon = USD +/- Truflation.

* In a deflationary environment, Nuon will drop below peg.

* In an inflationary environment, Nuon will be above peg.

* Nuon is overcollateralized with crypto.

* Currently backed by BTC, ETH, and Tether on testnet, and considering adding other tokens such as Chainlink, Avalanche, and Solana as collateral.

* Collateral can be used to mint Nuon.

* At the moment, allow people the option to hedge themselves against inflation.

* Been in talks with financial institutions, SMEs, and quants.

* Truflation will start to track more items such as commodity pricing, precious metals pricing, and weather information.

* As more items are added, perpetual ties can be created with it.

* Launching personalised inflation calculators to find out and hedge against personal inflation with products created by these quants and industry verticals.

* Truflation started off with just tracking and replicating what BLS was doing in a digital form.

* Not the best programming language used at the beginning, but code has since been updated.

* Uses multiple sources for each item and disclose all price sources.

* In the process of decentralising the database, how to pull data in and store it at multiple nodes across a decentralised network.

* Trying to build an optimistic rollup where people can dispute and query the uploaded data, and anybody can provide data and have algorithms that verify the data.

* Heavily focused on making sure the above mentioned is available over the next 6/12/18 months.

* One of the biggest challenge is how to provide liquidity to these products.

Q: One issue of overcollaterization is the ability to scale. How do you work around the issues of scaling?