Today, Mirror Protocol took to its Twitter to declare that it has added an S&P 500 synthetic asset to its platform. It will offer investors access to a crypto token tied to the stock market’s performance. Moreover, the S&P 500 is a usually-followed index of the 500 biggest publicly-traded companies in the United States. It covers various blue-chip technology equities, including Google, Amazon, Apple, Microsoft, Tesla, and various others. Additionally, at the time of this publication, the index has a one-year return of 63.27%, as per S&P Global.
According to the announcement, Mirror Protocol’s mSPY token depicts a synthetic version of the S&P 500. This implies that it is a crypto token with a value that mirrors the stock market’s performance. Further, it advocates that users can mint, stake, or trade mSPY. To mint, users must possess either TerraUSD (UST) or other Mirror Protocol assets in their wallet. Furthermore, the UST stablecoin has developed in the last few months to hit and exceed $1 billion in market capitalization. Therefore, UST endures the five positions in the stablecoin market in market capitalization.
Mirror Protocol keeps Collateral Ratio at 130%
Recently, the Mirror Protocol synthetic asset’s collateral ratio is at 130%. The protocol recommends users set the collateral ratio at 180%. This is to avoid any liquidation. Moreover, users can also choose to offer liquidity to the mSPY-UST pool and receive a 150% APY return on their investment. At press time, this pool had assets worth 2.95 million UST staked. Further, users can purchase or trade mSPY for UST on the platform.
Synthetic assets, crypto tokens bound to other assets’ performance have been quickly gaining popularity. The leading protocols, Injective and Synthetix, are prominent examples. On Jan 6, Injective Protocol added support for Facebook, Amazon, Netflix, and Google stocks. Injective is listing Facebook, Amazon, Netflix, and Google’s stocks on its Injective Solstice V2 network. The protocol contends that users can buy the stocks in USDT (stable digital cash).
Further, it will charge zero gas fees to equity traders, which is pretty impressive as commonly traders are assumed to be charged high gas fees. Besides, the Synthetix community voted in favor of attaching synthetic modifications of Tesla stock to its platform. Mirror Protocol allows synthetic variants of Tesla, Facebook, Amazon, Apple, Netflix, Google, and more.
Follow BitcoinWorld for the latest updates.