What's Going On Here?

The cryptocurrency market is currently experiencing significant activities following the US House's passage of several crypto legislations. This has spurred a surge in prices, with total market capitalization exceeding US$4 trillion for the first time and Bitcoin reaching a new all-time high at around $120,000 amid broader market rallies.

Amid this bullish trend, SoSoValue's Mag7.ssi index token has stood out with exceptional results, boasting a 1-year ROI of 100.99% that outperforms BTC's returns by approximately 15.97% as of July 22nd, 2025, highlighting its ability to capture enhanced gains through diversified exposure while BTC traded sideways in certain periods. This report is to help investors understand Mag7.ssi comprehensively in just 10 minutes.

What are SSI and SSI Index Tokens?

SSI, or SoSoValue Indexes, serves as a secure and transparent on-chain spot crypto index protocol designed to streamline passive investing. It achieves this by repackaging diversified, multi-chain, multi-asset portfolios into wrapped tokens through smart contracts.

The observatory indexes were created to fill the needs from investors: SoSoValue's investment research dashboard can help investors to look at the current state of crypto, such as how big a sector is and how much does a sector account for in the entire crypto market, but investors cannot trace the sector's historical growth. Let alone many smaller-cap coins could come in and out of a sector very fast and investors could hardly track them.

SSI made this possible!

Analogous to the S&P 500 or Nasdaq 100 in traditional finance, SSI provides structured mechanisms for assessing market performance and supporting investment strategies, aggregating the performance of selected crypto assets into a single metric to deliver insights into broader market trends. As such, it functions as a reliable benchmark for evaluating the overall health of the cryptocurrency market or specific sectors. SoSoValue introduced 13 observational indexes spanning various crypto sectors, including DeFi, CeFi, Layer1, Layer2, and RWA, in June 2024.

SSI Index Tokens represent the tradable embodiments of SoSoValue Indexes. Four such tokens—MAG7.ssi, MEME.ssi, DEFI.ssi, and USSI—were launched on December 25, 2024. Extending the analogy to traditional markets, SSI Index Tokens relate to SSI Indexes much like the SPY ETF does to the S&P 500 or the QQQ ETF to the Nasdaq 100.

While SSI and its Index Tokens deliver benefits akin to those of traditional stock indexes and ETFs—such as benchmarking, diversification, liquidity, and accessibility—they distinguish themselves by leveraging blockchain smart contracts to automate processes, enabling on-chain transparency, low-cost diversification, monthly automatic rebalancing to track market trends, and institutional-grade custody for underlying assets, allowing investors to avoid the complexities of managing individual coins. After all, crypto is here to revolutionize traditional finance, so why shouldn't its indexes be more advanced?!

Why were SSI created?

The cryptocurrency market, for all its promise, presents investors with a paradox of choice and risk. Navigating thousands of volatile assets often leads to over-concentration in a few dominant coins like Bitcoin, leaving portfolios exposed to sharp market swings and the risk of backing the wrong asset. This complexity creates significant barriers, demanding constant research, high transaction fees, and the emotional resilience to manage a portfolio in a fragmented, 24/7 market. SoSoValue Indexes (SSI) were created to cut through this chaos, addressing the fundamental need for a simpler, more secure way to invest in the broader growth of digital assets without the high costs and risks of going alone.

Drawing inspiration from transformative innovations in traditional finance, SSI modernizes a century-old concept for the digital age. Much like how the Dow Jones Industrial Average first gave investors a clear benchmark for economic health in the 1890s, SSI provides a transparent and holistic view of the crypto market's performance. Furthermore, by creating tradable, on-chain index tokens, SSI index tokens function as the revolutionary SPDR S&P 500 ETF (SPY), which first made diversified, low-cost stock market investing accessible to all. Through a secure, on-chain protocol with automated rebalancing, SSI packages diversified crypto portfolios into single, tradable tokens, effectively democratizing access to sophisticated investment strategies.

This achievement highlights the exponential pace of innovation within the digital asset space. While it took traditional markets over a century to progress from the first stock index to a liquid, tradable ETF, the crypto ecosystem is making that leap in a fraction of the time. By building on top of the foundational principles of financial history, SoSoValue has developed a solution that simplifies crypto investing and promotes more efficient capital allocation across the market. This represents a critical step in the maturation of digital finance, readying it for a new generation of investors.

What is Mag7.ssi?

Among SoSoValue's four tradable index tokens, Mag7.ssi stands out with the highest total value locked because it targets the very heart of the market. It captures the performance of the top seven cryptocurrencies—including Bitcoin, Ethereum, and Solana—which together represent over 80% of the entire crypto market capitalization. Through a strategic initial equal weighting allocation of about 10-14% per asset, Mag7.ssi provides diversified exposure to established giants while remaining positioned to capitalize on the growth of emerging leaders, offering a potent blend of stability and powerful upside.

Here are some facts about Mag7.ssi

• Token contract: 0x9E6A46f294bB67c20F1D1E7AfB0bBEf614403B55
• Token standard: ERC20
• Chain: Base
• TVL: $168.04M
• Total Supply: $175.28M
• Holders: 191,732
• % staked: 92.55%
• No. 2 Revenue Generating Protocol on Base as of June 9th, 2025

SoSoValue Index protocol ranked as No.2 by renevue generating on Base

What are Mag7.ssi's key mechanisms?

1. How does the initial equal weight work?

Forged through extensive backtesting, the weighting mechanism of Mag7.ssi strategically balances growth and diversification. By assigning each asset a minimum 10% weight, it prevents over-concentration in giants like Bitcoin, creating robust exposure designed for steady returns with built-in downside protection.

Historical backtesting validates this strategic design. From 2021 to 2023, its cumulative return of 125.2% significantly outpaced Bitcoin’s 31.4%. This strength was particularly evident during the 2021 bull market, where MAG7.ssi delivered a 252.2% annual return, showcasing the power of its diversified approach during periods of broad market growth beyond a single asset.

Looking ahead, as the crypto industry enters a new phase of maturation potentially defined by greater regulatory clarity, the stage is set for a new wave of innovation. This environment is expected to fuel the growth of new market leaders. By design, MAG7.ssi is strategically positioned to capture this expansion, offering a vehicle built to capitalize on the sector’s evolving landscape and continue delivering performance that reflects the total strength of the market.

2. How does the price of mag7.ssi stay close to NAV of its holdings?

The price of Mag7.ssi is anchored to its Net Asset Value (NAV) through an on-chain creation and redemption mechanism.

First, the Oracle gives us the price details. Second, Similar to how ETF works in traditional finance, we have authorized participating dealers to arbitrage and profit on any price deviations. For example, when Mag7.ssi price goes higher than the NAV of its underlying assets, it creates incentives for dealers to sell Mag7.ssi and buy the underlying assets, creating constant pressure so that Mag7.ssi's price is aligned with the value of its underlying assets. For larger trades, the participating dealers send requests to the protocol to mint or redeem underlying asset, the protocol then sends the request to market markers to quote net price to the protocol, and then execute the trades. For smaller trades, investors can trade directly in our uniswap pool.

Finally, the whole process is very transparent as investors can see how many assets are in custodian and can easily calculate the NAV. Essentially, investors know exactly if they are trading at a premium or discount at any point of time when investing.

3. How does the monthly rebalance work?

The rebalancing process is systematically handled on-chain to ensure security and transparency:

• Initiation: The protocol temporarily pauses all minting and burning operations to begin the rebalancing process.
• Targeting: It then fetches the new target allocations for the constituent tokens from the index compiler, which determines which assets to add, remove, or adjust.
• Execution: A Professional Market Maker (PMM) is engaged to execute the necessary trades. The PMM sells tokens that are being removed or reduced in the index and buys the tokens that are being added or increased. These transactions are secured by on-chain smart contracts to ensure their integrity.
• Confirmation: Once all trades are completed, the protocol updates the index’s constituent data to reflect the new portfolio weights.
• Resumption: Finally, the rebalancing is marked as complete, and the minting and burning of Mag7.ssi tokens are resumed.
• The monthly rebalancing directly benefits holders by providing disciplined risk management and ensuring the portfolio constantly adapts to the market’s most relevant assets. This automated process is designed to optimize performance by capturing growth from emerging leaders, all while saving investors the significant time, cost, and complexity of managing a diversified crypto portfolio themselves.

4. How does Mag7 ensure the security of its underlying assets?

Mag7.ssi ensures the security of its underlying assets by partnering with institutional-grade custodians, creating a system that combines on-chain transparency with robust, third-party protection.

The core of this model is the segregation of duties:

• Asset Custody: The actual cryptocurrencies that constitute the Mag7.ssi index, such as Bitcoin and Ethereum, are held by professional and well-known custodians like Cobo and Ceffu. This arrangement means the assets are not held by the protocol itself but are secured by specialists with stringent security protocols and insurance coverage.
• On-Chain Operations: While the assets are in custody, the Mag7.ssi token itself operates via on-chain smart contracts. This provides a high level of transparency, as investors can view the portfolio composition, transaction records, and rebalancing details in real time.
• Proof of Reserves: To further enhance trust and transparency, the custodians publish daily proof of reserves. This allows investors to verify that the assets backing the index are fully collateralized and securely held.

This hybrid approach provides a multi-layered security mechanism. It leverages the transparency of blockchain technology while relying on the established security infrastructure of institutional custodians to protect the fund’s assets, offering a secure and transparent investment solution for token holders.

5. What's the benefit of staking Mag7.ssi?

By this point, you probably think Mag7.ssi's 90%+ 1Y ROI is pretty great. Well what if I told you that's not all? Our analysis indicates that investors who stake their Mag7.ssi tokens benefit from a compelling, multi-layered return structure. Beyond the capital appreciation of the underlying seven crypto assets, the total effective return for stakers has reached a comprehensive annualized yield of over 70%.

The exceptional yield is not derived from a single source but is a composite of a base APY and strategic incentive programs.

• Incentive Programs: The primary driver of the high yield is the distribution of $SOSO token airdrops to stakers. These rewards are allocated through structured campaigns, such as the current Staking Epoch 3 (May–November 2025), which has an allocation of 30 million $SOSO tokens designated for participants. This incentive layer is specifically designed to reward long-term holders and foster ecosystem growth.
• Base Staking APY: Underpinning the incentive rewards is a foundational base yield. This is generated from a share of protocol revenue, which includes fees from minting, redemption, and rebalancing activities. While variable, this base APY provides a consistent income stream that supplements the airdrop incentives.

The ability to stake Mag7.ssi allows the holders to achieve a powerful compounding effect. This dual-return mechanism differentiates Mag7.ssi from traditional index products and aligns with SoSoValue's mission to provide innovative, high-performance investment solutions.

Who are the competitions for Mag7.ssi?

In a market where crypto assets are increasingly packaged into traditional financial wrappers, Mag7.ssi stands apart as a truly native on-chain solution. While the convergence of TradFi and crypto will bring more centralized products, these often come with limitations. Mag7.ssi, by contrast, is engineered on the core principles of decentralization, delivering what its competitors cannot: global, permissionless 24/7 trading, true self-custody, and a sophisticated hybrid weighting model built for balanced growth.

For example, the Mag7.ssi and the COIN50-PERP represent two fundamentally different approaches to index-based crypto exposure. Mag7.ssi is a spot index token, providing direct, verifiable ownership of a basket of the seven largest crypto assets, which are held transparently with an institutional custodian. Its value is directly pegged to the Net Asset Value (NAV) of these holdings, offering a straightforward investment vehicle. In contrast, the COIN50-PERP is a synthetic derivative — a perpetual futures contract that allows traders to speculate on the price movement of the 50-asset Coinbase index without owning any of the underlying cryptocurrencies. This introduces a different risk profile, including counterparty risk and the potential for liquidation, and its price is maintained through a funding rate mechanism rather than direct asset backing.

For investors seeking authentic, unfiltered ownership in the digital asset economy, Mag7.ssi isn’t just another choice—it is first of this kind and it is the standard.

Comparison of Crypto Indexes with Tradable Products (Total Market Cap > $1M)

What's the future for Mag7.ssi?

To glimpse the future, turn to history—it’s our most reliable guide.

Time and again, in emerging markets, the smartest bet isn’t chasing individual stars but riding the tide of the entire sector’s ascent.

In traditional finance, over 90% of stock pickers, even seasoned pros, end up trailing broad indexes like the S&P 500, as evidenced by decades of data from S&P Dow Jones Indices.

This timeless truth now echoes in cryptocurrency, where sifting through thousands of volatile tokens to spot the next big winner is a gamble fraught with peril.

As the digital asset market stands on the cusp of its next major expansionary phase, the most critical decision for an investor is how to get on board quickly and effectively. In a rising tide, the priority is to be in the water, not to guess which drop will rise the highest.

Mag7.ssi serves as the ideal vessel for this journey. It removes the guesswork, emotional strain, and high transaction costs of building a diversified portfolio one token at a time. By offering instant, balanced exposure to the market’s seven most dominant assets, it allows investors to capture broad market momentum and position themselves to capitalize on the entire sector’s upward trajectory, making it the essential vehicle for navigating the next wave of crypto growth.

In 1993, the SPY ETF launched with $0.45 billion AUM and revolutionized stock investing; today, it commands over $550 billion. This isn’t just financial history—it’s a roadmap. Just as SPY provided the key to the stock market’s generational growth, mag7.ssi offers a strategic position at the forefront of crypto’s expansion.

Key Takeaways / Conclusion

The history of investing offers a clear roadmap: true, sustainable growth comes from embracing market-wide innovation, not from chasing individual winners. Mag7.ssi applies this proven principle to the digital age, offering a sophisticated, on-chain solution that eliminates the complexity and guesswork of crypto investing. It provides what savvy investors demand: diversified exposure, automated discipline, and unparalleled transparency.

The next wave of capital will inevitably seek out these intelligent, streamlined vehicles. The question is not whether this shift will happen, but where will you be positioned when it does. Take your place at the forefront of the market’s evolution with Mag7.ssi. True alpha isn’t found by luck — it’s engineered through superior foresight and intelligence.

To learn more about SoSoValue Indexes and Index Tokens, visit: https://sosovalue.com/assets/cryptoindex