Mirror Protocol is one of Terraform Labs' most recent offerings. Its purpose is to enable crypto users to connect with the financial system in novel ways. Crypto users may acquire synthetic assets that mimic the price of real-world assets like as equities and precious metals via smart contracts.
Users of Mirror Protocol can trade and generate synthetic assets. It contributes to the integration of traditional assets with blockchain technology. It's a protocol that average users looking for an alternative to the standard banking system may find appealing. Mirror System is a DeFi protocol that creates synthetic assets known as Mirrored Assets or mAssets by utilizing the Terra blockchain. Mirror makes use of the smart contract programming language CosmWasm. mAssets mimic the price behaviour of traditional and digital financial assets. The transaction is completed without the need of an intermediary. Furthermore, the underlying assets do not have to be acquired directly. mAssets may be exchanged fast and simply between the Terra, Ethereum, and Binance Smartchain networks. Terra stablecoins can be traded for mAssets. The assets can then be placed in Collateralized Debt Positions (or CDPs). The protocol employs CDPs to stabilize the mAsset value.
mAssets may be exchanged fast and simply between the Terra, Ethereum, and Binance Smartchain networks. Terra stablecoins can be traded for mAssets. The assets can then be placed in Collateralized Debt Positions (or CDPs). The protocol employs CDPs to stabilize the mAsset value.
Mirror Protocol was be launched in early 2020 by Terraform Labs. Terraform Labs is a South Korean business that also invented the Terra network. Do Kwon is the co-founder and CEO of Terraform Labs and Mirror Protocol. In December 2020, Terraform Labs released Mirror Protocol to construct price-stable derivative assets on Terra Network. Mirror Protocol strives for total decentralization. The protocol is governed by MIR holders. The distribution of MIR tokens benefits network participants. The distribution model is determined by their responsibilities in the protocol. The primary goal of the initiative is to make financial markets more accessible and to facilitate liquidity that may be utilized to construct synthetic assets.
MIR is Mirror's native token. It was originally made available to Terra liquidity providers through Uniswap and Terraswap between 11th of November and 4th of December 2020. Mirror's genesis event kicked off a four-year period of issuing MIR tokens to Terra and Mirror users.
Mirror Protocol's governance token is the Mirror Token (MIR). It is now necessary to stake it in order to vote on existing polls and as a deposit in order to create new governance polls. Mirror will serve additional uses for the protocol in future iterations, increasing its usability and value. Users who stake MIR tokens receive MIR dividends when they withdraw collateral from CDP positions inside the network.
MIR may also be utilized to motivate users to farm yields by staking LP tokens created by providing liquidity for MIR and mAssets. Yield is provided to users from freshly minted MIRs via yearly inflation, which steadily raises the overall supply of MIR until the conclusion of the fourth year.
A total of 370,575,000 MIR tokens are expected to be awarded during the next four years. There will be no more new MIR tokens added to the supply after that.
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