Set Protocol Launches FAANG Index on Uniswap for Mirror’s mAssets

Mirror Protocol
Mirror Protocol
Published in
3 min readMar 12, 2021

We’re thrilled to announce the launch of a custom FAANG set developed using the industry-leading index tools by Set Protocol, the Ethereum-based protocol for standard, tokenized asset baskets. The FAANG set will be composed of 5 major tech equity mAssets on Mirror — Facebook, Amazon, Apple, Netflix, and Google!

You can now buy an equally weighted tokenized basket of major tech equities derived from Mirror Protocol on Terra via Ethereum’s Uniswap. Eligible non-U.S. users can also interact with the FAANG set from the TokenSets protocol directly, similar to how the DeFi Pulse Index (DPI) currently operates on the protocol. The index is equally weighted between each mAsset (20 percent) and will be rebalanced quarterly.

The FAANG mAsset set will be available for trading on a FAANG/WETH Uniswap pool here.

Composable Indexes

Indexes play a critical role in financial markets. They serve as popular passive vehicles for exposure to a broad set of assets with specific parameters and help reduce the inefficiencies of active asset selection by fund managers and investors. Lower turnover, reduced costs (e.g., fees relative to ETFs), and simplicity are all distinct advantages of indexes.

The FAANG Set is the first tokenized synthetic index tradeable on an AMM DEX. DeFi users can immediately gain exposure to 5 large-cap US tech companies via WETH — making accessing the wealth creation of 5 of the world’s most innovative firms available to anyone with an Internet connection, ETH, and MetaMask.

Additionally, crypto degens knee-deep in DeFi don’t need to withdraw and convert their crypto to fiat to gain exposure to a TradFi basket of assets. It’s all available directly within Ethereum.

Composability is powerful and can function as a gravitational force for preserving value on-chain. For example, instances where financial vehicles in TradFi, like indexes, are brought on-chain alleviates the need to revert from crypto to fiat. If users have access to stablecoins, payments, savings, investing, and popular investment structures that track TradFi assets (e.g., FAANG Index), the incentive to pull funds from networks like Ethereum and deploy in legacy markets is reduced.

For many users in financially disenfranchised regions of the world, the FAANG index is also a compelling avenue to generate passive wealth beyond what’s typically accessible to them. With only Uniswap pool trading fees to pay, tapping into the potential upside of major US tech equities via a few simple clicks and the permissionless nature of Ethereum can be a reprieve from onerous financial conditions endemic in many regions globally.

The FAANG Set protocol is another example of the power of composable mAssets on Mirror. With Mirror’s “Reverse MakerDAO + Uniswap/Sushi-enabled trading of synths” structure, mAssets can be ported to other blockchains and serve as building blocks for innovative DeFi products. If you want to build a cool Mirror-related product, join the Mirror governance forum and make a proposal on the governance page!

Who knows, maybe you can be the next issuer of an innovative financial instrument involving mAssets. Welcome to the future of finance.

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