Grow your savings in Stablecoins

Money management is a primary focus for most people. Whether you’re managing a personal budget or creating one for your family or partner, saving money is a priority. For us here in Nigeria this might not be as straightforward as it sounds. It’s a recession and the naira is in a free fall. In other words, it’s a normal day in Nigeria. You earn in naira, but with time it seems like you can buy less and less with that money. What the heck is going on?

According to Nairametrics, Nigeria’s inflation rate hit a record high of 17.71 % in June 2022, with energy and food prices rising to record levels. With the world currently facing extraordinarily high levels of inflation as a result of the Russia-Ukraine, world supply chain bottlenecks, reverberations from the COVID crisis, and other economic situations, Nigeria appears to be facing the brunt of the increase in commodity prices.

I’m sure you wouldn’t believe that we started the year with the dollar trading at N565/$1 on parallel/P2P markets. Today the naira is trading above N650 to a dollar, quite scary right! This equates to an increase of over 8%, meaning a pair of sneakers that would have cost you N10,000 at the start of the year will now cost you close to N11,000. And that’s based on the dollar increase alone. 

The worst part of this is that this 8% increase is in addition to inflation figures, and we’ve seen some of the worst price increases with household items this year. For more context; the price of onions, diesel, and cooking gas have all increased by 57%, 181%, and 103% respectively.

Things are truly getting out of hand and draw us to wonder how everyday Nigerians survive. Will this ever end, and, are there any ways to escape from this nightmarish cycle? We’re not sure. The signs don’t look great for the economy. But it’s not all doom and gloom. There are some measures you can take to keep your head above water.

Saving in Stable Currencies (USDT, BUSD, USDC)

One way to stay ahead of this inflation problem is by saving in stable currencies. This is because savings are supposed to be long term and if your currency is constantly being devalued, then you are probably losing, rather than gaining value regardless of how much you save.

Did you know that the naira’s history vs the dollar has been marked by a consistent depreciation in value? The naira has lost, on average, approximately more than 14% annually since 1972. This means that for your savings to break even each year, they must outperform this loss, which encourages you to make riskier investments. When you save in dollars, the 14% value loss is immediately retained, and future dollar rises actually boost your savings.

Unfortunately, for everyday Nigerians like us, getting access to dollars is easier said than done. You’d have to cross seven mountains and oceans to open a domiciliary account and the next best option requires you to save dollars in cash obtained from dodgy Bureau de change operators.

How Flip Helps Grow Your Savings In Stablecoins

Luckily for you, the entire team at Fluidcoins has been working tirelessly to provide a solution to this problem. After a lot of cups of coffee and sleepy stand-up meetings, we’ve released the product of our sleepless nights: Flip! Flip is a mobile that gives you access to savings and returns in dollar-denominated stablecoins directly from your bank account. Using Flip makes dollar savings easy and accessible with a $5 minimum deposit and up to 6% interest on your stablecoins yearly.

Flip utilizes stablecoins which are cryptocurrencies whose values are pegged to a relatively stable asset – typically a fiat currency. For instance, a dollar-pegged Stablecoin is equivalent to 1$. Using Stablecoins we’re able to provide you with all the benefits of cryptocurrencies while also protecting you from the volatility experienced with other cryptocurrencies like Bitcoin or Ethereum.

We generate returns on your savings deposits by converting your naira into stablecoins called USDT which we then lend out on decentralized money markets referred to as DeFi protocols. Thanks to DeFi’s unique architecture, you can earn interest in real-time and add or withdraw funds anytime. Flip also lets you shop and spend globally through our dollar virtual cards also powered by stablecoins. So yeah, no more $20 dollar limits.

It’s important to note, however, that there are a few things to consider when making your first investment in DeFi. We encourage all potential users to be mindful when investing and understand the potential risks, no matter how unlikely they may be. Luckily for you, we’re ready to stick by you all the way as we help you discover new ways to save smarter, work your money harder and grow your wealth.

Feel free to head over to the Flip website to learn more and hopefully start your Flip journey. Also, If you have any questions, you can always message us on social media at @fluidcoins or shoot a note to support@fluidcoins.com.