Mirror Protocol Now Offers Access to S&P 500 Index

Key Takeaways

  • Mirror Protocol users can now access a synthetic token, mSPY, which is tied to the performance of the S&P 500.
  • Users can stake or mint mSPY, or contribute to a liquidity pool.
  • Other platforms such as Injective Protocol and Synthetix offer similar synethetic investments.

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Mirror Protocol has added an S&P 500 synthetic asset to its platform, giving investors access to a crypto token that is tied to the performance of the stock market.

Mirror Protocol Adds Index Fund

The S&P 500 is a commonly-followed index of the 500 largest publicly traded companies in the United States. It includes many blue chip technology equities including Apple, Microsoft, Google, Amazon, Tesla, and several others. At press time, the index had a one-year return of 63.27%, according to S&P Global.

Mirror Protocol’s mSPY token represents a synthetic version of the S&P 500, meaning that it is a cryptocurrency token with a value that follows the performance of the stock market.

Users can stake, mint, or trade mSPY. To mint, users must have either TerraUSD (UST) or other Mirror Protocol assets in their wallet. Currently, the collateral ratio is set at 130%. To avoid liquidation, the protocol suggests users to set the collateral ratio at 180%.

Users can also opt to provide liquidity to the mSPY-UST pool and earn a 150% APY return on their investment. At press time, this pool had assets worth 2.95 million UST staked.

Additionally, users can buy or sell mSPY for UST on the platform.

SIMETRI Research

The Rise of Synthetic Assets

Synthetic assets—crypto tokens tied to the performance other assets—have been rapidly growing in popularity.

Two protocols are particularly notable. On Jan. 6, Injective Protocol added support for Facebook, Amazon, Netflix, and Google stocks. Elsewhere, on Feb. 11, the Synthetix community voted in favor of adding synthetic variants of Tesla stock to its platform.

Mirror Protocol itself offers synthetic variants of Tesla, Facebook, Apple, Amazon, Netflix, Google, and more.

The author did not hold any cryptocurrencies mentioned in this article at the time of press.

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UMA, Yam Finance Launch WSB-Tracked Stocks

Key Takeaways

  • UMA and Yam Finance are launching a synthetic stocks index through their collaborative project, Degenerative Finance.
  • The index will feature the “ten most bullish stocks according to WallStreetBets.”
  • Early users will benefit from substantial liquidity minings rewards and bonus NFTs.

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Degenerative Finance is launching a stocks index that “tracks the sentiment of the r/WSB community.”

Degenerative Finance Eyes WallStreetBets 

Degenerative Finance, the partnership project of UMA and Yam Finance, is launching synthetic stocks. 

uSTONKS are designed to track the price of the “ten most bullish stocks according to WallStreetBets.” It will initially launch with an April expiry and features synthetic assets like Apple, Tesla, GameStop, Silver, and Nokia. It’s available from today.

Yam Finance posted a tweetstorm detailing how uSTONKS will work. 

UMA said that the product “represents UMA’s dedication to DeFi and our mission to achieve Universal Market Access.” 

Nexo Earn

As it “tracks the sentiment, or excitement, of the r/WSB community,” Yam said, users will have the “freedom and opportunity to express their opinion” from the WallStreetBets point of view. In other words, they could long or short the index. 

UMA and Yam are also offering bonus liquidity mining rewards. There’ll be 5,000 YAM and 5,000 UMA available in week one, and rewards then double to 10,000 tokens of each project in weeks two and three. 

Users will be able to mint and provide liquidity to uSTONKS to earn the rewards. First, they need to deposit USDC as collateral to mint uSTONKS, then provide liquidity with ETH in the Uniswap pool. 

SIMETRI 10x potential

The project is also giving away a set of WallStreetBets-themed NFTs to celebrate the launch. 

The WallStreetBets community, which largely centers around a popular subreddit, has received heightened exposure from the crypto and mainstream worlds this year, owing to the infamous short squeeze involving GameStop’s GME stock. Traders successfully pumped the price of GME over 1,900% in January, liquidating hedge funds like Melvin Capital in the process. Several major entertainment houses are producing movies of the events, including HBO and Netflix. 

Earlier this month, key members outlined their plans to launch an on-chain investment pool. “WallStreetBets 2.0” will allow investors to bet on stocks through a smart contract pool. Announcing the update, the group said:

“It’s time to stop using a broken financial system that is archaic and inefficient. It’s time to decentralize.”

Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies. They also had exposure to UNI in a cryptocurrency index. 

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