Energy Crisis in Europe: How Can Mettalex Help?

Oct 21, 2021

Europe is on the cusp of a severe energy crisis. The prices of heating and electricity are soaring for both industrial users and households, threatening the fragile post-pandemic recovery.

Several concurrent factors have created a perfect storm that has no signs of abating. Quite the contrary, experts believe that the situation might even get worse. 

With coal being pushed off the EU energy mix, reserves being at historically low levels thanks to a colder-than-usual 2020 winter, a hot summer in 2021, and with wind turbines producing less energy than expected, Europe is faced with triple-digit increases in prices of energy commodities.

Governments are already deliberating on the best measures bound to mitigate the expected severe rise in energy expenses. It is yet unclear how sustainable and efficient those could be. In some countries, households must prepare to pay over 40% more for energy and heating, while industrial consumption could increase by more than 100%.

What could SMEs and households do to stabilize their purchasing power?

Hedge.  

Thanks to decentralized finance, consumers in Europe and around the globe could soon have access to an alternative solution to their energy woes and not have to rely on government subsidies to get through the upcoming winter. 

Using the decentralized Mettalex commodities derivatives exchange, in just a few clicks users will be able to open long or short positions on a range of energy markets including natural gas, Brent Crude Oil, WTI Crude Oil, or coal. 

This is where the real world meets cost-efficient DeFi hedging tools. 

Mettalex incorporates derivatives trading with blockchain and Web3 technology to deliver a simple-to-use tool that enables hedging against adverse price movements. Derivatives make trading on Mettalex capital-efficient while the innovative trading system limits risks to pre-set parameters.

Using the Mettalex DEX anyone can get protection against energy and heating price increases. No intermediaries. No liquidations. Capital efficient. Accessible 24/7/365.

We plan to list a number of energy commodities once we acquire secure access to reliable pricing data. Expect news very soon!

Access the commodities derivatives DEX at: dex.mettalex.com