• The SuperBonds platform is designed to challenge the market for high-fee bonds.
• SuperBonds are built upon.
• DeFi investors have the ability to purchase bonds through this platform, and they are guaranteed USDC.

Fears of inflation were triggered by supply chain issues around the world when the pandemic struck. Despite widespread panic throughout 2021 the Federal Reserve maintained its belief that inflation is temporary and will ease once the world returns to normal and supply chain stability improves. It also waited to increase interest rates and stayed away from stimulus programs.

Fast forward to 2022 and the threat of inflation is still very much existent, with the Fed’s initial predictions now viewed as missing the mark. This inaccuracy has been acknowledged by Fed Reserve Chair Jerome Powell over the course of recent months. When asked at a congressional hearing if his stance had changed about price increases not being persistent, Powell’s response to lawmakers was, “No, that is no longer my view.”

With a 6.8% year-overyear increase, November’s consumer price index, a critical indicator for inflation, was at its highest point since 1982. Statistics Canada last week reported that grocery prices have risen by 5.7%. It is its largest annual rise since 2011.

According to the agency, the price of fresh produce was attributed to “unfavorable weather conditions in growing regions, as well as supply chain disruptions”. Two years of extremely low interest rates were also a significant contributor to the inflation.

As evidence shows, it’s clear that fiat currency is experiencing inflation across the globe. For those wanting to invest in traditional, centralized finance (CeFi), however, there are limited options for protecting their portfolio. This includes bonds and investing in real estate or commodities stocks.

Due to their low-risk nature, bonds are commonly sought to hedge against inflation. Investors can lend money to companies that require cash to fund their operations. Bonds are a reliable way to protect against inflation. They return an average of 5% per year, but they can be expensive because brokerage fees may apply.

SuperBonds will be disrupting the traditionally high-fee bond market. It is also the first DeFi market. SuperBonds uses Solana as a blockchain, which eliminates the traditional high fees. DeFi investors will be able to purchase bonds through the platform, and they’ll receive a guarantee return of $USDC.

The ability to keep their investments in whatever wallet they choose gives users financial flexibility. SuperBonds bypass high transaction costs using the Solana network at a low fee.

Moreover, many CeFi products (centralized finance) in this space require that funds be held within the platform for them to earn yield. There is an alternative: DeFi, or decentralized finance.

“SuperBonds tokenizes a fixed USD yield into a unique NFT that as a self-custodied financial asset can enable different kinds of collateralization opportunities within the rapidly innovative DeFi space, unlocking a new chapter in capital efficiency. Rates do not constantly change, providing greater predictability for traders & Liquidity Providers alike,” the company states in a blog post.

Many were worried about inflation after the pandemic, and many tried to safeguard their investments against this looming danger. Inflation hedges have become more important than ever as investors remain uncertain about when they will be resolved. DeFi is a new way for investors to capitalize on their investment without paying high fees.

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