Congrats to portfolio company Universal Market Access for forging a powerful alliance with MakerDAO to launch USStocks, an ERC20 token representing synthetic ownership in the S&P 500. As part of our DeFi thesis, we believe in a future where anyone with access to an Internet connection can gain exposure to any financial market through a single marketplace for risk transfer.
To create USStocks, liquidity providers deposit Dai into UMA’s trustless tokenization smart contract. As the value of the stock index rises, providers add additional Dai with the smart contract enforcing a total collateralization ratio of > 108.5%¹ at all times. USStocks are free to trade until the initial expiration date, May 15th when any tokenholder can redeem their USStocks tokens for Dai at the final settlement value.