The U.S stock market happens to be one of the most lucrative stock markets in the world, a strength that allows it to attract a lot of investment. Anyone planning to buy and trade stocks has to go through various processes to gain access to the market due to heavy regulations. For example, one is required to have a U.S bank account, and an account with a registered broker. Tax compliance is also an important requirement to consider.
While trading the U.S stock market is now easier than it was a few years ago, the processes and high fees might be a turnoff for some. But what if you could access the market through a blockchain ecosystem. It turns out it’s possible thanks to the Terra blockchain. The latter is the same blockchain that facilitates the creation and support of stablecoins such as UST. However, it also makes it possible to access the crypto market through its Mirror protocol.
It is a decentralized finance protocol on the Terra blockchain that facilitates the creation of synthetics or fungible assets whose prices track those of real-world assets such as stocks. This approach allows anyone from anywhere in the world to trade U.S. equities through the mirror assets also known as M-assets. They include stocks, metals, and other commodities that are traditionally traded on securities exchanges.
The Mirror protocol has been expanding its offering to make it available outside the Terra blockchain. For example, a bridge to the Binance Smart Chain provides M-assets accessibility in the Binance ecosystem. M-assets are now available on multiple decentralized platforms including Uniswap, Terraswap and PancakeSwap.
Holding M-assets is simply owning an asset whose price is attached to the actual asset, similar to how stablecoins have prices pegged to the underlying asset such as the U.S dollar. Mirror assets provide easy accessibility to the price movements of the underlying assets. For example, you can trade mTesla stocks on a blockchain platform where you will not be required to fill in KYC information and the process is easy and straightforward.
Another major benefit is that one can invest in fractional shares, which means you do not have to purchase an entire share. It makes it easier to access shares whose stock prices are in the thousands of dollars especially for traders who want to invest a lower amount.
Buying and selling M-assets in the Mirror protocol is analogous to trading the actual stocks where one can buy low and sell high. However, there are other ways of earning through the Mirror Protocol. For example, one can participate as a minter by taking on a collateralized debt position to secure newly minted m-assets, through which they earn rewards. You can participate as a liquidity provider on the platform by adding equal amounts of UST and m-assets to Terraswap which provides rewards collected from fees and interest.
Users on the Mirror protocol can earn staking rewards on the Mirror protocol by staking Mirror tokens or LP tokens. The Mirror protocol’s impressive approach to providing access to the stock market and the other earning opportunities in its ecosystem makes it quite an appealing platform. It provides a unique opportunity for anyone to grow wealth through the stock market within a blockchain ecosystem while also accessing other opportunities without being locked out.
Meanwhile, users can also buy the Luna coin to take advantage of the platform’s fast-paced growth. The demand for UST which is a key part of the ecosystem will also fuel more growth for the Luna native token.
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