uSPY, uVIX and other... the synthetic tokens that track carefully selected exchange-traded assets

We propose to create PERPETUAL synthetic tokens, the price of which is tied to the price of shares and indexes traded on stock exchanges.

The choice of underlying assets will be determined by the possibilities of their use for both speculative trading and hedging.

At the same time, users get the opportunity to use the price movements of exchange-traded assets without having to turn to such centralized structures as banks, brokerage companies and stock exchanges.

In addition, these synthetic tokens can be used as components associated with classical markets by other DeFi and DApp protocols, which makes it possible to scale.

At the initial stage, we selected the following basic assets, the price of which is linked to the exchange quotes of the VIX volatility index and the SPY ETF:

  • The SPDR S&P 500 Trust ETF (SPY), also known as the SPY ETF, is one of the most popular funds that aims to track the Standard & Poor’s 500 Index, which comprises 500 large- and mid-cap U.S. stocks. These stocks are selected by a committee based on market size, liquidity, and industry. The S&P 500 serves as one of the main benchmarks of the U.S. equity market and indicates the financial health and stability of the economy.

  • The CBOE Volatility Index (VIX) is a real-time index that represents the market’s expectations for the relative strength of near-term price changes of the S&P 500 index (SPX). Because it is derived from the prices of SPX index options with near-term expiration dates, it generates a 30-day forward projection of volatility. Volatility, or how fast prices change, is often seen as a way to gauge market sentiment, and in particular the degree of fear among market participants.

In the future, we plan to add synthetic tokens, the prices of which track the quotes of such exchange-traded assets as indexes, ETFs, SPAC, IPOs.