Mirror has stocks and commodities, but no way to get exposure to the bond market. Mirror is limited because the oracle feeds don’t include interest payments, and we also don’t want to subsidize low volatility assets with MIR rewards as that would be a free lunch for farmers.
However, we could add UBT to mirror. It invests in Treasury futures so there is no interest payments, the price of the fund tracks the returns. It is also more volatile than the stock market so it wouldn’t be a free lunch for farmers. It would also offer a way for people to get exposure to interest rates on the block chain which I don’t think exists. This is an important financial primitive.
Support for UBT???
Bumping this one. Hope you guys don’t mind. Another option would be EDV / ZROZ. Both of these are more volatile than SPY so I don’t think it would be a free lunch for farmers. Could also have a modest MIR rewards for this one, even less than 0.3.
Hi. I’m not completely naive to the bond market. I wasn’t familiar with UBT so I read up on it.
Just a general comment about feasibility of getting a vote passed is this: I think people consider bonds to be “boring” and might not understand how to incorporate them into an investment strategy.
How would you use UBT if it was to be listed?
It’s a diversifying asset, that typically performs well during financial panics. While bonds can seem ‘boring’ 30 year treasuries are about as volatile as the S&P500, and the 2x bull ETF is certainly not boring!
Right now the only risk off asset on mirror is VIXY, but due to the strategy pursued there it bleeds money long term…
I personally hope to never have direct exposure to the bond market. The bond market is rigged and I don’t have any ideas anymore how to use bonds as part of my investment goal(s).
You don’t consider metals to have some risk-off characteristics?
I am in favor of having listings on Mirror that represent different categories. Don’t worry about a disclaimer of “not financial advice” but for my 2021 outlook how would I convince myself that UBT was a vehicle that would be beneficial to me? I have exposure to the S&P 500, NASDAQ, Russel 2000, Chinese Mid and Large Cap Index, Nikkei 225, Gold, Lithium, Water, FAANG and other U.S. and Canadian equities.
I used to have some “fixed income” investments but I’m just not interested anymore in a world where maintaining a standard of living where real inflation (not necessarily the CPI) is well in excess of 2%.
Maybe the BTC “digital gold” and “inflation hedge” narratives are overplayed so what’s a man to do? I am not all in crypto and I do a fair bit of investing outside of crypto. I consider mAssets to be a diversification opportunity as opposed to just thinking that taking profits into BTC and ETH is the safe way of investing.
I’m not trying to be adversarial I’m just curious to hear from someone who is familiar with both extremes – on one side we have “100x” mindset with crypto assets and the opposite being bonds.
Please keep in mind that on Mirror you can go long or short. Discussions on listing an mAsset should be completely separate from a bull or bear case on an asset… The US treasury market is a $21 trillion market and we would be the first on-chain way to make directional bets on its movement. The Treasury market has implications for equites, credit, crypto, and traditional forex. Giving traders the ability to go long or short would really help them manage their portfolio exposure.
I understand your perspective thanks for elaborating. I agree with having diversity and this certainly would be the first synth related to bonds as far as I know.