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The future of saving starts with DeFi. Here’s why.

Gary & Liam
Gary & Liam
Did you know the current inflation rate is 7.5%? If this continues, in 9 years you’ll have lost half your money. But…

The future of saving starts with DeFi. Here’s why.
Inflation makes the value of your money go down, effectively creating a penalty for saving.
But what if there was a way to beat inflation? With the right apps, you can! Before diving into how, let’s go back to Economics 101 and break down some concepts.
What is inflation?
The most common reason for inflation is the amount of money in the economy increasing faster than we can produce the goods (for example, beer, shoes, coffee).
But why would the amount of money in the economy increase? When interest rates are low, people and businesses borrow more money. They then spend their new money. This is how the economy grows. But…
We don’t want too much borrowing and spending. As I mentioned before, when the amount of spending occurs faster than we can produce things, the prices of things go up—a.k.a. inflation.
Inflation starts here
Inflation starts here
How does inflation affect my savings?
You can use the inflation rate to figure out the real return on your savings. Just take the return your bank gives you and subtract the inflation rate.
For example, if your bank offers an annual percentage yield (APY) of 1%, but the inflation rate is 7%, your real return rate is negative 6%.
What is DeFi?
Decentralized Finance (DeFi) is an umbrella term for financial products and services designed to work outside traditional banking and economic systems.
DeFi apps (dApps) offer a range of services from borrowing to lending to exchanging currency. They all operate automatically using smart contracts, which act as the brains facilitating millions of transactions every day. Smart contracts define an agreement (or contract) between parties that is automatically executed without human involvement.
What are the advantages of using these dApps over traditional banking services…
Find out in the full post on our blog!
Any feedback? Drop us a lime 🍋
We’re busy working to launch Candle (more on that next time). If you want to get in touch, schedule a hangout with us.
Gary & Liam
Gary & Liam
👋 hasta luego (see you later)
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Gary & Liam
Gary & Liam @candlefinance

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