Create Equity Synthetics on the top 3 traded US stock index etfs (S&P 500, Nasdaq 100, Russell 2000)
This SIP will create 3 new synths sSPY, sQQQ, sIWM based on top US stock etfs SPY, QQQ, and IWM.
Given the importance of US stock market in the world financial system, offering synthetics on a comprehensive set of top traded US equities is key for both Stakers (volume) and Traders (risk management beyond crypto). The current available TSLA synth (as well as FAANG/MSFT synths proposed in recent SIPs) offer exposure to some of the most popular US tech stocks, but they aren't a comprehensive offering from investing or risk management perspective. These stocks are all under the same category of "growth"/"tech"/"momentum" and lack diversification into different types of risks that may be preferred with changing market conditions and/or risk appetite.
This SIP will add three new synths that will provide both diversification and new risk exposure on three of the most heavily traded US stock indices.
I propose SPY, QQQ, and IWM, because
- SPY is the most traded stock etf in the world tracking the S&P 500 index (widely used benchmark of large cap US companies)
- QQQ is the most traded stock etf tracking the NASDAQ index (widely used benchmark of US tech stocks)
- IWM is the most traded stock etf tracking the Russell 2000 index (widely used benchmark of small-cap US companies) Also even though these are US stocks, it should be emphasized that investors/traders around the world speculate and hedge risk with US equities given the maturity of the market as well as the influence of the US economy globally.
I think this will prove to be a significant step for Synthetix in growing its equity offerings not just for retail, but for institutional use as well.
This will benefit both stakers (increased volume & more diverse flows -> debt neutrality) and traders (more comprehensive exposure to US stock markets for speculation/hedging)
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