Hart Lambur, Co-founder at UMA protocol shared an announcement on 27 March about a US Stock Index token energized by UMA financial contract platform and the stablecoin Dai (DAI).
Hart commenced by introducing the new token as USStocks and that it was live on the Ethereum Mainnet. Hart conveyed that USStocks is an ERC20 token harmoniously blending the ownership of 500 largest exchange-listed US stocks. He clarified that in simple terms, anyone who is online and own digital coins can be a part of the US stock market.
Hart added that USStocks is the first decentralized avenue for financial market access. Users are privileged to use the world’s first decentralized stablecoin, Dai, to buy US dollar-backed assets.
Rune Christensen, CEO, and co-founder of MakerDAO cited –
“Dai exists to create an inclusive platform for economic empowerment — allowing equal access to the global financial marketplace. USStocks is an exciting example of how decentralized finance can unlock economic opportunities for people regardless of geography or income level.”
Hart informed that the decentralized cryptocurrency exchange DDEX is currently the platform used for soliciting potential investors. Hart highlighted that USStocks tracks top firms listed on the New York Stock Exchange and Nasdaq. He informed that each USStocks token represents a dollar multiplied by the stock index level.
Hart touched upon the fundamentals of the way USStocks works. To create USStocks, users deposit Dai into UMA’s trustless tokenization smart contract. As the value of the stock rises, providers add additional Dai with the smart contract. This enforces a fixed total value. USStocks are free to trade until the expiration date when they can be redeemed.
Late last year, the decentralized financial contracts platform UMA dawned on the horizon. The aim was to enable Universal Market Access. UMA allowed risk to move across the internet without a centralized authority or a single point of failure. The system was designed to power public blockchains, like Ethereum. It borrows concepts from traditional currencies and defines an open-source protocol to create trustless financial contracts.
Hart concluded by promising the arrival of more tokens for other assets. The tokens would also encompass inverse exposures and leverage. Hart emphasized that these products could be traded across platforms that support ERC20 standard. Hart noted the potential of decentralized finance as a formidable force. The current offer presents a small step towards better financial market access. Hart conveyed that there are more developments in the marketplace for risk transfer.