Mirror Protocol announced last Friday, March 12, through its Twitter account, your collaboration with Set Protocol, an Ethereum-based platform for tokenized index tools that launched a set of customized #FAANG indexes for 5 main technological groups: Facebook, Amazon, Apple, Netflix, and Google.
“The #FAANG set is the first tokenized synthetic index tradable on an AMM DEX. The index is weighted equally between each set of mA (20%) and will be rebalanced on a quarterly basis. Operate in the Uniswap group of FAANG / WETH”, said the company through a publication on the same social network.
As explained by the company in an article published on the Medium platform, users will be able to buy an “equally weighted tokenized basket of the main technological actions derived from the Mirror Protocol on Terra through Ethereum’s Uniswap”.
Additionally, he noted that eligible non-US users can also interact with the FAANG suite of the TokenSets protocol directly, like how the DeFi Pulse Index (DPI) currently works in the protocol. The index is weighted equally between each set of mAs (20 percent) and will be rebalanced quarterly.
In his view, the FAANG set is the first tokenized synthetic index tradable on an AMM DEX. “DeFi users can gain immediate exposure to 5 large-cap US tech companies through WETH, making access to wealth creation from 5 of the world’s most innovative companies available to anyone. with Internet connection, ETH and MetaMask”, he indicated.
Furthermore, he highlighted that “knee-deep cryptocurrencies in DeFi do not need to withdraw and convert their crypto to fiat to gain exposure to a basket of TradFi assets. Everything is available directly on Ethereum”.
Mirror Protocol assured that composibility is powerful and can function as a gravitational force to preserve value in the chain. For example, cases where financial vehicles on TradFi, such as indices, are brought onto the chain, alleviating the need to go back from crypto to fiat. “If users have access to popular stablecoins, payments, savings, investments and investment structures that track TradFi assets (eg the FAANG index), the incentive to mine funds from networks like Ethereum and deploy in legacy markets will be reduce”, he specified.
While adding that the FAANG index is also a compelling way to generate passive wealth beyond what is normally accessible to them. “By just paying Uniswap group trading fees, tapping into the upside potential of major US tech stocks through a few clicks and the permissionless nature of Ethereum can be a respite from the onerous financial conditions endemic in many regions worldwide”, he highlighted.