1/17
In anticipation of Version 2, I wrote a review for @Qi_Capital on @mirror_protocol, diving deeper into its value proposition, solution mechanic, farming opportunities, the $MIR token, and much more. Check it out!
@terra_money $LUNA $UST #DeFi
link.medium.com/plCfgSmspgb
In anticipation of Version 2, I wrote a review for @Qi_Capital on @mirror_protocol, diving deeper into its value proposition, solution mechanic, farming opportunities, the $MIR token, and much more. Check it out!
@terra_money $LUNA $UST #DeFi
link.medium.com/plCfgSmspgb
2/17
For everyone too lazy to read the article, here a short summary:
Mirror Protocol allows everyone to create and trade synthetic assets (Mirror Assets or mAssets), which track the price of specific real-world assets like stocks or ETFs - across #Terra, #Ethereum, and #BSC.
For everyone too lazy to read the article, here a short summary:
Mirror Protocol allows everyone to create and trade synthetic assets (Mirror Assets or mAssets), which track the price of specific real-world assets like stocks or ETFs - across #Terra, #Ethereum, and #BSC.
3/17
The protocol - as well as its native gov token $MIR - has seen constant growth since its inception in December 2020, which is reflected in $2.3 billion TVL, a constantly high trading volume, and a market capitalization of $0.5 billion. Dashboard by @Mirror_Market_
The protocol - as well as its native gov token $MIR - has seen constant growth since its inception in December 2020, which is reflected in $2.3 billion TVL, a constantly high trading volume, and a market capitalization of $0.5 billion. Dashboard by @Mirror_Market_
4/17
The current macroeconomic situation has led to a "search for yield", driving up the demand for equity or equity-related investments. But the retail buying frenzy has also uncovered many flaws in the system.
The current macroeconomic situation has led to a "search for yield", driving up the demand for equity or equity-related investments. But the retail buying frenzy has also uncovered many flaws in the system.
5/17
.@mirror_protocol aims to tackle many of these issues: allow global 24/7 access to US stocks and ETF price feeds, even for the unbanked but also full transparency by utilizing the Terra blockchain without counterparty risk.
.@mirror_protocol aims to tackle many of these issues: allow global 24/7 access to US stocks and ETF price feeds, even for the unbanked but also full transparency by utilizing the Terra blockchain without counterparty risk.
6/17
Mirror Protocol allows the issuance (minting) and trading of synthetic assets (which are fungible assets) based on oracle price feeds. At the point of writing Mirror Protocol supports 23 synthetic assets across three categories: US stocks, ETFs (or Trusts) & Cryptocurrencies
Mirror Protocol allows the issuance (minting) and trading of synthetic assets (which are fungible assets) based on oracle price feeds. At the point of writing Mirror Protocol supports 23 synthetic assets across three categories: US stocks, ETFs (or Trusts) & Cryptocurrencies
7/17
mAssets can not only be traded on Mirror Protocol's own web app and Terra's own DEX Terraswap but also own a dedicated native mobile app called "Mirror Wallet" @Mirror_Wallet and thanks to a bridge to #Ethereum and Binance Smart Chain #BSC also on those two blockchains.
mAssets can not only be traded on Mirror Protocol's own web app and Terra's own DEX Terraswap but also own a dedicated native mobile app called "Mirror Wallet" @Mirror_Wallet and thanks to a bridge to #Ethereum and Binance Smart Chain #BSC also on those two blockchains.
8/17
.@synthetix_io has been the first widely known synthetic asset protocol in #DeFi and it, therefore, it makes sense to compare it to Mirror:
(Data from before "black Wednesday")
.@synthetix_io has been the first widely known synthetic asset protocol in #DeFi and it, therefore, it makes sense to compare it to Mirror:
(Data from before "black Wednesday")
9/17
Mirror also comes with many risks, as all DeFi protocols based on the nascent stage of the industry. Here are some: smart contract risk, software risk, market risk, liquidation risk, economic incentive risk, regulatory risk, etc. They are described in the article.
Mirror also comes with many risks, as all DeFi protocols based on the nascent stage of the industry. Here are some: smart contract risk, software risk, market risk, liquidation risk, economic incentive risk, regulatory risk, etc. They are described in the article.
10/17
Version 2 of Mirror is lined up for this month and will both improve and expand the protocol's functionality. The original forum announcement can be found here (forum.mirror.finance/t/mirror-v2-up…).
Version 2 of Mirror is lined up for this month and will both improve and expand the protocol's functionality. The original forum announcement can be found here (forum.mirror.finance/t/mirror-v2-up…).
11/17
V2 will bring pre-IPO contracts, improved governance, additional collateral beyond UST, a new minting process, changed to the Uniswap incentives and Chainlink as a second oracle provider.
V2 will bring pre-IPO contracts, improved governance, additional collateral beyond UST, a new minting process, changed to the Uniswap incentives and Chainlink as a second oracle provider.
12/17
Mirror's native token $MIR serves to facilitate decentralized governance through the community as well as to bootstrap liquidity through incentives and comes with a deterministic inflation schedule. It has currently high inflation which will be significantly reduced from y2
Mirror's native token $MIR serves to facilitate decentralized governance through the community as well as to bootstrap liquidity through incentives and comes with a deterministic inflation schedule. It has currently high inflation which will be significantly reduced from y2
13/17
Mirror introduced some very lucrative farming opportunities on top of the Terra blockchain as well as on Ethereum and Binance Smart Chain.
Check out this thread to learn how to provide liquidity to Mirror on Terra:
Mirror introduced some very lucrative farming opportunities on top of the Terra blockchain as well as on Ethereum and Binance Smart Chain.
Check out this thread to learn how to provide liquidity to Mirror on Terra:
https://twitter.com/archon_ch/status/1377199958659579904?s=20
14/17
Mirror's strengths:
- Built on a highly scalable blockchain
- Steady growth in liquidity and trading volume
- Capital-efficiency based on $UST as collateral
- UX
- Cross-chain
Mirror's strengths:
- Built on a highly scalable blockchain
- Steady growth in liquidity and trading volume
- Capital-efficiency based on $UST as collateral
- UX
- Cross-chain
15/17
Mirror's weaknesses:
- Liquidity separated per mAsset
- Still relative low awareness of the project
- Competitor Synthetix currently ahead in terms of announced features and ecosystem (
- High token inflation during the first 12 months
- Governance mechanic
- Premium
Mirror's weaknesses:
- Liquidity separated per mAsset
- Still relative low awareness of the project
- Competitor Synthetix currently ahead in terms of announced features and ecosystem (
- High token inflation during the first 12 months
- Governance mechanic
- Premium
16/17
The future of mirror will depend on the answer to these three questions:
- Are mAssets are actively used across multiple blockchains as money legos?
- Is there real demand for decentralized derivatives?
- Will there be sufficient liquidity for mAssets across chains?
The future of mirror will depend on the answer to these three questions:
- Are mAssets are actively used across multiple blockchains as money legos?
- Is there real demand for decentralized derivatives?
- Will there be sufficient liquidity for mAssets across chains?
17/17
To get the full picture, check out the article, give it a clap and provide feedback! Thank you!
medium.com/qi-capital/rev…
To get the full picture, check out the article, give it a clap and provide feedback! Thank you!
medium.com/qi-capital/rev…
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