I have been thinking about the different strategies to survive financially an eventual market crash in which the crypto winter would happen together with a rampant dollar devaluation.
We live in strange times, the Dollar isn’t as safe as it used to be, and at the same time cryptocurrencies are a risky asset class, for now.
Commodities on the other hand, can provide the inflation proof stability investors seek in a generalized bear market, with the downside of being unable to provide a sustained yield.
I propose building a Siver/Gold AMM contract, so risk adverse investors looking for a inflation hedge with a yield can enjoy one of the best financial products for them.
Now, someone could say it’s impractical to build this pair since the Tez/gold and Tez/siver pairs would have a higher volume, and gold and silver could be traded indirectly with these two pairs.
I completely disagree: AMMs have a weakness, impermanent loss, and therefore these contracts are more suited to very correlated assets, like silver and gold, or wheat and corn. And on top of that, many risk adverse investors would be spooked by the idea of holding crypto, and even more in a bear market. On the other hand, becoming a Gold/Silver liquidity provider would cater more traditional investors.
My programming language is insufficient to build this as of right now, but I hope this becomes a reality with QuipuSwap or someone makes a dexter contract with the OroPocket tokens.