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.

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.

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.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article