If you follow us and read our previous articles, you must know that thanks to crypto, now you can trade the US equities even though you are non-Americans.
They are synthetic assets. We introduced FTX, the leading cryptocurrency derivatives exchange that launched an innovative trading product, tokenized equity, which allows you to purchase real Tesla stocks and a dozen of global companies’ stock shares with USD stablecoins.
FTX is a CEX (centralized exchange), it has listed over 40 tokenized stocks.
What about DEX? Today we would like to introduce a DEX (decentralized exchange) that you can trade these synthetic assets and stake them to earn over 200% APY.
Why is this appealing? Imagine you are holding Tesla stocks, the stock price is dropping, but you believe it is a good company and the stock price will go up in the future. So you won’t sell it out. How would you make use of this holding period? Isn’t it exciting that you can earn 200% APY during this waiting-price-go-up period? Absolutely.
A DeFi protocol makes it possible. Now you can stake your stocks with Mirror Protocol.
Mirror is a DeFi protocol powered by smart contracts on the Terra and Ethereum network. You might be familiar with Terra’s CHAI, which always ranks No.1 or No.2 by active users in all dapps. Now Mirror Protocol is built as the second finance dapp on Terra, what exactly is it? Mirror Protocol allows the creation of fungible assets, “synthetics”, that track the price of real-world assets. These synthetics assets in Mirror Protocol are called Mirrored Assets (mAssets), and mimic the price behavior of real-world assets and give traders anywhere in the world open access to price exposure without the burdens of owning or transacting real assets. Mirror Protocol also allows you to stake your mAssets and earn rewards.
This means you can stake real stock shares in Mirror Protocol with a rather high APY. So far, the pools in Mirror Protocol support many leading global companies’ stocks including Tesla, Twitter, Netflix, Amazon, Microsoft, Alibaba, Google, Apple, etc. All the APYs are above 150%. Currently, the LP with the best APY is mNFLX-UST LP for Netflix stock, at 219.83%. And the APY for Tesla is 203.92%.
You can check each mAsset’s price trend in the protocol to decide which one to invest in. Take Tesla as example. The mTSLA price at the time of writing is 861.815 UST, with its price curve demonstrating below.
Then how to get these mAssets?
For all the mAssets in Mirror Protocol, you need to either mint them by yourself or buy them with UST (TerraUSD), the US dollar stablecoin on Terra blockchain. You can buy UST in Kucoin which is the only centralized exchange that supports UST. Search "US" then you will see the USDT/UST trading pair.
To mint a mAsset, you as an issuer must lock up > 150% of the current asset value in Terra stablecoins or mAssets as collateral. If the value of the asset rises above the collateralization threshold, the collateral is liquidated to guarantee solvency of the system. Sounds too hard? You can buy UST easily in Kucoin or decentralized exchanges like Curve or Uniswap V2.
And how to stake and over 200% APY in Mirror Protocol?
1. Choose the blockchain you want to use, either Terra blockchain or Ethereum blockchain. No matter which blockchain you choose, the process is the same. Terra blockchain will give you a lower gas fee definitely.
3. Go to “Trade” in Mirror Protocol. Buy the mAssets you want with UST.
4. Choose the mAssets pool to provide liquidity in Uniswap to attain LP tokens.
5. After you got the mAssets LP tokens, you can start to stake to earn interest now! Go to “Stake”. Select the mAsset LP, for example mTSLA-UST LP, and enter the amount you’d like to stake.
After staking, you can start to earn up to 219% APY now! You can check your real-time earning on “My Page”.
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