Cash flow management for SMB using Cryptium: a high-yield, low volatility crypto-annuity
In 2004, the Canadian currency was $0.72 for every USD dollar. During the next 3 years, the Canadian dollar increased to $1.07 as a result of the economic boom caused by petrol exportation from oil sand. If a business primarily operating in Canada during that time held $100,000 CAD in 2004, their purchasing power would be 49% higher when buying goods and services from the US toward the end of these 3 years.
This example demonstrates that without any effort on the part of the SMBs, tremendous financial return on operating margins can be achieved, and strictly through the underlying growth of a currency. It cost no equity, no royalty, no interest, no dividends of any sorts; simply a higher demand on the currency itself pushes it’s value upward.
The erosion of fiat
Real world operating businesses have relied on fiat for their cash flow until this day. During the COVID-19 pandemic, the USA printed more than 35% of the total supply of USD currency. This is likely to lead to severe deflation of the US Dollar and affect most businesses with operations in the US. Many such companies have excess capital from time to time, and this excess capital is often sitting idle in a bank account. At best, some of the better managed companies utilize certificates of deposits. However, those rates are now below 1% APY, making them worthless in light of the upcoming currency deflation.
While crypto currencies such as Bitcoin and Ethereum could be alternative currencies, their high degree of volatility makes them unreliable for operating businesses that want to ensure the safety of their capital until needed. Stablecoins on the other hand could also be an alternative, but they lack appreciation of value and are often pegged on USD.
Transition to a high-yield, low volatility collective crypto-asset
In order to protect their cash assets, the transition of SMBs to a collective of crypto-assets is of utmost importance. Just like the CAD/USD ratio between 2004 and 2007 benefited Canadian companies, early movers to these new assets would greatly benefit from their growth without any costs to the participants. These new assets would have to be pegged against an internationally recognized store of value independent of USD (Bitcoin, Gold, Commodities like orange juice, milk, copper, silver, water, etc). It would have to provide high-growth potential without the excessive volatility as seen in Bitcoin, and other crypto-currencies in the market today. It would have to be entirely designed from the ground up to satisfy the requirements of SMBs.
AuDeFi introduces Cryptium — a high-yield, low volatility crypto-annuity
Autonomous Decentralized Finance (AuDeFi), is set to launch their crypto-annuity on January 27th, 2021. AuDeFi is financially supported by Dragon’s Vault, a globally distributed investment fund from Singapore, with investments in crypto-assets and SMBs. Dragon’s Vault has been looking for an alternative to fiat to support their investment portfolio against the erosion of fiat during the past year.
