50K reading posts, holding U for a year without doing anything, losing 8% I didn't expect so many resonances, it means I'm all numb. Holding U means holding US dollars. Most people don't pay attention to the fluctuations of the US dollar standard, and I'm also confused when I see the numbers myself. The USD: RMB continues to depreciate, and the "money" is getting less and less. I deeply ponder, what product should be used to hedge against foreign exchange fluctuations and losses? Can you make more money by being a little slutty? Let's dive in! ⬇️ If you are not a professional financial professional, words such as foreign exchange, exchange rate, and FX are really clueless. The only thing you can use in daily life is when going abroad to exchange foreign exchange or withdraw funds for living expenses. So it's no wonder that within a year, the U dropped from 7.2 to 6.7 without even noticing, and the RMB standard "lost" millions In fact, the foreign exchange market is particularly huge and is the largest category of daily transactions in the financial market, with a daily turnover of about 7.5 trillion US dollars. RWA, which has been around for so many years, is finally being widely adopted this year under the strong driving force of the US stock market. Similarly, someone should also be keeping an eye on such a large cake in the foreign exchange market. We can understand it this way: the vast majority of stablecoins in the current cryptocurrency market are based on the US dollar, which brings a problem. The US dollar itself continues to depreciate relative to many currencies, and fluctuations in foreign exchange rates can lead to huge "losses" for you, just like the problem I encountered. So following this line of thought, if I have earned U in the cryptocurrency industry, I should use some foreign exchange RWA products to hedge against the fluctuations of the US dollar itself, and even expand the returns of the US dollar standard. I understand the reason, so it's best to choose a currency that continues to appreciate against the US dollar and has high interest rate returns, including the Chinese yuan. However, I learned today that the Brazilian real BRL and Mexican peso MXN are even more impressive. Provide data. In the past five years, the BRL has appreciated by 6.5% against the US dollar and the MXN has appreciated by 16.4%. While appreciation is acceptable, what's even more frightening is that the average interest rate of BRL from May 2021 to May 2026.5 is 11.58%, and the average benchmark interest rate of the Bank of Mexico is about 6.29%. Simply put, it's already 3-5 times the base interest rate of the US dollar. Appreciation+high interest rates=a perfect hedge against fluctuations in the US dollar exchange rate. RWA them and add FX cargo trading is what Tenbin Labs @ tenbinlabs is doing - strictly speaking, it is not an FX project, but an asset tokenization issuance protocol, where currencies, gold, and commodities can all earn interest on the chain, and FX is just the first shot it fired. Tenbin has developed two tokenized forex products, tBRL (Brazilian Real) and tMXN (Mexican Peso), which should be the first time in history that emerging markets have been brought to the blockchain with liquid, interest bearing, and composable DeFi gameplay. After the user pledges, stBRL captures about 13-14% APY and stMXN captures about 7-8% APY, with profits coming from real interest rates, without playing the token subsidy set. The USD stablecoin APY is basically 4-5%, and the return of stBRL is directly tripled, making it a high interest asset. To acquire these two assets through conventional channels, you must have a local bank account, an onshore account, and foreign exchange controls, which are definitely not something that ordinary people can handle. Now, Tenbin on the permissionless blockchain allows you to trade anytime and supports 7 × 24 fast USDC redemptions. How did Tenbin do it? / I have been studying the document for a long time, and my knowledge of foreign exchange is too limited, but I have figured out the basic principles. Tenbin actually does not hold physical local currency and does not need to hold Brazilian real or Mexican peso cash. Instead, it holds foreign exchange futures positions on regulated exchanges such as CME and operates using the USDC full collateralization model. The returns come from trading high-yield currencies at a discount on the futures curve. The returns generated by the convergence of the discount are captured by hedging positions and transmitted to the holders. In other words, the returns come from the real interest rate spread, rather than the token incentive subsidy model commonly used in the cryptocurrency industry. This makes it clear that instead of everyone rushing into the USD stablecoin interest track, it is better to explore new categories. Moreover, FX is only the first category of Tenbin. Previously, they launched the gold token tGLD, but now they have added FX to complete a new gameplay of on chain asset interest, exchange, clearing, and free combination through three steps: open construction, native returns, and on chain care. The project is still in its early stages, and the official promotion has topped the seed round with $7.1 million from institutions such as @ galaxyhq. GSR, Wintermute, distributed capital, Uniswap, and other figures can also be seen on the official website. I am more looking forward to the future gameplay of tBRL and tMXN in DeFi combinations, starting this year to use FX to hedge against fluctuations in the US dollar. Although I checked my account balance and it's only 69 U, it doesn't hinder my hobbies and studies, right? Wish us good luck! / Author: Anymose | A Soft Core Science Popularization Writer This article is for educational purposes only and does not constitute any investment advice. Always remember DYOR!