UMA and YAM Finance to launch a tokenised WallStreetBets portfolio

The UMA decentralized derivatives platform, in collaboration with YAM Finance, has put to a vote a proposal to launch the uSTONKS synthetic contract. It represents a basket of ten stocks most discussed in the r/WallStreetBets community on the Reddit platform.

In collaboration with @YamFinance: Announcing the arrival of uSTONKS on UMA:

«The uSTONKS token is a synthetic that tracks an index consisting of ten stocks that are most commented on r/wallstreetbets.» https://t.co/Rrky6QpMcW

— UMA (@UMAprotocol) February 3, 2021

The share of each asset in the index token will be 10%. The base date chosen is December 31, 2020. The index was assigned a value of 100 points on that date, and each stock on that date was 10 points.

The first token will be uSTONKS-MAR21; its composition is shown in the illustration below.

Composition of the uSTONKS-MAR21 contract. Data: UMA Project.

Below is the hypothetical trajectory of uSTONKS-MAR21 since the start of the year.

Hypothetical trajectory of uSTONKS-MAR21. Data: UMA Project.

The contract will be calculated in USDC. 1 point will correspond to 1 USDC. The collateral ratio will be 1.25.

Trading will run 24/7. The reference prices for the stocks will be their values on the NYSE, NYSE Arca and NASDAQ.

uSTONKS will not account for dividends paid. In the event of a stock split, the index value will be recalculated.

If approved by the UMA and YAM Finance communities, the launch of uSTONKS with a March 31 expiry at 16:00 UTC will take place on the Degenerative Finance platform.

Following the announcement, the platform’s native YAM token rose at one point by 25%, and UMA by more than 150%, according to CoinGecko. The latter ranked 23rd by market capitalization among DeFi projects.

Earlier in the day, the YAM promised to launch version 2.0 of the protocol after the discovery of a vulnerability and the collapse of the native token.

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