Understanding UVA
The Argentine UVA Index Explained
The Unidad de Valor Adquisitivo (UVA) is a financial index introduced by the Central Bank of Argentina in 2016 as part of a broader strategy to stabilize the national economy and provide more predictable financial instruments amidst persistent inflation.
Key Features of the UVA Index:
Daily Adjustment: The UVA value is recalculated daily based on the country's Consumer Price Index (CPI)
Inflation Tracking: It precisely follows inflation, ensuring that values indexed to UVA maintain their purchasing power
Financial Integration: Used for mortgages, loans, and savings accounts throughout the Argentine financial system
Transparency: Based on official inflation statistics, providing a standardized measure of value changes
The UVA index has become a cornerstone of Argentina's financial system, particularly for long-term financial products where protection against inflation is crucial.
How UVAz Works
UVAz operates through a simple yet powerful mechanism that converts traditional assets into inflation-protected digital tokens:
Purchase: Users deposit USDT (Tether) through our protocol
Minting: The system mints UVAz tokens based on the current UVA index rate
Backing: USDT is used to purchase CER-indexed Argentine bonds as collateral
Holding: Users store UVAz in their digital wallets, protected from inflation
Redemption: Users can redeem UVAz tokens back to USDT at the current UVA-indexed value
This process creates a transparent, secure system where each UVAz token maintains its purchasing power regardless of inflation rates, offering users financial stability in an otherwise volatile economic environment.
Bond-Backed Security Model
UVAz tokens are fully backed by CER-indexed Argentine bonds, providing a robust security model that ensures the stability and reliability of our flatcoin.
Security Features:
Full Collateralization: Every UVAz token is backed by real financial assets
Inflation-Indexed Bonds: The backing assets themselves adjust with inflation
Transparent Reserve: Bond holdings can be verified and audited
Stable Foundation: Government-backed securities provide institutional credibility
Redemption Guarantee: The bond backing ensures that redemptions can always be fulfilled
By utilizing CER-indexed bonds, which are closely aligned with the UVA index through their shared relationship to the Consumer Price Index, UVAz creates a secure foundation that grows with inflation, protecting user value in real terms.
Last updated