The Impact of Inflation: Time to Turn to DeFi?

Whether you’ve noticed its impact or not, you’ve probably heard that inflation is rising across the globe. But what does this mean for your money? Let’s have a look at what causes inflation and what can be done to protect your savings from it.

First things first, inflation refers to the rate of increase in prices of goods and services over a period of time. If the cost of a $1 item rises by 5 cents, then its inflation is 5%. This increase in price is often caused by an increase in the production costs of certain items, as well as surges in demand for specific products and services.

Not only does this mean that your funds are losing value, the world’s leading economies have been left with their lowest real interest rates in decades as a result. All in all, it’s pretty bad news for your savings.

So, what can you do about it? Luckily, there are ways to hedge against inflation and earn higher interest rates - and traditional savings accounts are not the answer.

We previously discussed how crypto can protect investors against inflation in this blog post, but did you know about the potential of DeFi?

DeFi-powered earning - whether that’s staking, yield farming or lending - has taken off in recent years as an alternative way to earn passive income. But while DeFi protocols typically generate high yields, they’re not always easy to get to grips with.

Here’s where Wirex comes in. We designed X-Accounts to provide easy access to the benefits of DeFi, without the complicated steps and high fees that usually come with it.

X-Accounts do this by automatically depositing your funds into a secure DeFi protocol with a guaranteed high yield. All you have to do is move your funds into one (you can open up to 10 at a time), then we do the rest for you.

If you to open an X-Account in traditional currency, you’ll earn 12% AER on it if you choose to be paid in kind, or an enormous 16% AER on it if you’d prefer to be paid in WXT. In-kind earnings are also compounded daily, which means interest on your interest.

Want to earn on your crypto, too? No problem. You’ll earn 6% in kind, or 10% in WXT when you move it into an X-Account. Plus, we’re constantly adding new currencies to earn with - you can currently choose from: BTC, ETH, LTC, AAVE, LINK, MKR, XLM and DAI.

X-Accounts also put you in complete control of your funds. There's no fixed terms, minimum deposits and fees for set up, maintenance and withdrawal. You should be able to do whatever you like with your money - move it, take it out whenever you like or keep it in and earn even more.

There’s no better time to make your money work for you.