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Mirror Protocol: Assets Reflected on the Blockchain

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Mirror Protocol, or simply Mirror, is a new DeFi project launched in December 2020 that offers some innovative features compared to the various crypto products out there, namely the creation of synthetic assets, called Mirrored Assets (mAssets). These assets are linked to real assets such as Stocks and other products widely used by traders. 

Here is an example. Mirror allows users to buy Tesla shares (TSLA) or Apple shares (AAPL) 24 hours a day, 7 days a week and without the need to download stock trading apps. In order to create a new mAsset, a 150% collateral of the value of the mAsset being traded is required, paid in Stablecoin (TerraUSD). Synthetix has a similar function, where it is possible to mine synthetic assets pegged to real-world assets, but in that case, the collateral required is much higher: 750%. Mirror is able to offer better options as the collateral is provided using a stablecoin instead of cryptocurrencies (which are very volatile at the moment). 

Mirror Protocol thus removes the limitations of traditional finance and Wall Street, where there are fixed trading hours as well as days off (weekends). With Mirror, trading is 24/7/365. The price of real assets is verified every 30 seconds thanks to the famous oracles, so the price shown on-chain is always the closest price to the real value of the asset purchased. 

Behind the Mirror Protocol project are the same devs who are behind the Terra platform, so we are talking about people who have been working in the blockchain sector for several years. The dApp was created thanks to CosmWasm and the whole project revolves around a token that was not sold but distributed equally among various holders, becoming decentralized from day one. There are various incentives (governance, yield farming, staking) designed to make the Mir token more attractive, so the Mirror Protocol business plan will be determined by the holders themselves, who are obviously motivated to keep the product afloat through these incentives. Here is an overview of the token economy and the numbers behind the Mir token. 

The Mir Token – All there is to know

As already mentioned, the team did not retain any tokens at launch but preferred to become decentralized from the outset, giving away MIR tokens in the first phase to Uni token holders, LUNA token holders and creating a community Pool. This resulted in the distribution of the first 54.9 million tokens. The total and maximum circulating Mir token will be about 370 million tokens, distributed over 4 years. The first year inflation is a bit higher, reaching a circulating supply of 183 million tokens with an inflation of 233%. The second-year inflation is 40%, the third year 25% and the last year 15.71%. When governance polls are created, a FEE must be paid in Mirror tokens, which will be redistributed among the various holders if the quorum for the vote is not reached. 

The token is present on CoinGecko and is reported to have reached a minimum price of 0.89 cents on December 22nd, 2020, while the highest price was $5.88, reached yesterday (February 2nd, 2021). Currently, the price is $5.61 with significant volumes in the last 24 hours: $30 million. The token is tradable on Uniswap, OKEx, KuCoin and MXC. A great token to hold in your DeFi portfolio as it could have a positive performance, similar to that of SNX, the token of Synthetix (a similar product). 

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