Introduction
What is UVAz?
UVAz is an innovative inflation-protected stablecoin pegged to Argentina's UVA index and backed by inflation-indexed bonds. It represents a new category of digital asset called a "flatcoin," designed specifically to maintain purchasing power in economies experiencing high inflation.
Unlike traditional stablecoins pegged to a single currency like USD, UVAz tracks Argentina's economic reality through the UVA index, providing a reliable asset that grows with inflation to preserve value over time.
The Problem We're Solving
Argentina has historically struggled with high inflation, making it difficult for citizens and businesses to preserve their wealth. Traditional financial tools often fail to keep pace with rapidly increasing prices, while cryptocurrencies introduce excessive volatility.
UVAz addresses this challenge by creating a digital asset that:
Maintains purchasing power despite inflation
Provides stability in an unstable economic environment
Offers a reliable store of value for Argentines
Enables everyday transactions without value erosion
Stablecoin vs. Flatcoin
Stablecoin A stablecoin is a cryptocurrency designed to maintain a stable value by pegging it to an external asset like a fiat currency (USD, EUR), commodities (gold), or a basket of assets. Stablecoins aim to minimize price volatility in the cryptocurrency market.
Flatcoin A flatcoin is a specific type of stablecoin designed to maintain stable purchasing power rather than a stable price. Instead of being pegged to a specific currency, flatcoins are typically linked to economic indices that adjust according to inflation or cost-of-living metrics.
Key Differences
Asset Tied To
Traditional assets (USD, gold)
Economic indices (UVA, CPI)
Primary Goal
Price stability
Purchasing power stability
Inflation Protection
Limited/None
Built-in by design
Use Case Focus
Medium of exchange, crypto on/off ramp
Protection against inflation, savings
Backing Method
Reserve assets, algorithms
Inflation-indexed securities
UVAz embodies the flatcoin model by linking directly to Argentina's UVA index, which adjusts based on the country's consumer price index, ensuring that the token maintains its purchasing power even as prices rise.
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