Mirror Protocol

What is Mirror Protocol?

Mirror Protocol functions as a platform enabling cryptocurrency traders to access traditional financial assets. Utilizing Mirror's smart contracts, users have the capability to create tokenized, "synthetic" replicas of assets such as Tesla or Apple shares, facilitating trading within its decentralized network.

Aligned with the goals of other decentralized finance (DeFi) initiatives, Mirror Protocol seeks to supplant centralized intermediary entities, eliminate barriers, and enhance market accessibility. Traditional stock exchanges and brokerages impose stringent restrictions on user eligibility, whereas Mirror democratizes asset trading, offering everyone, regardless of location or banking status, the opportunity to participate.

Moreover, Mirror Protocol's synthetic Mirrored assets (mAssets), being blockchain-based tokens, can be subdivided into smaller, more affordable units. This feature, known as fractional ownership, enables users to trade fractions of high-value assets, like a $10 portion of a $100 share. While fractional ownership is gaining traction among established brokerages, tokenized stocks demand fewer resources.

Mirror has tokenized various assets, including Microsoft stocks (mMSFT), exchange-traded funds (ETFs) such as Invesco QQQ Trust (mQQQ), and cryptocurrencies like bitcoin (mBTC) and Ether (mETH). These mAssets are actively tradable on Mirror Protocol and can be staked or deposited into liquidity pools, generating additional returns for users in the form of MIR tokens.

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Recent Video Interview

Main points of the interview:

• Mirror Protocol being built on BSC and its integration within the Blockbuster Tech ecosystem.
• Mirror Protocol includes seven tokens, each rewarding holders in different blue-chip cryptocurrencies.
• The protocol's staking system allows for automated diversification of rewards.
• Future collaborations with SafeMoon and BBTf.

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Mirror Protocol's Key Features

Mirror Protocol has expanded its offerings to include Pre-IPO assets, permitting users to trade these assets following community approval through a proposal process. Users participating in administrative votes receive 50% of the MIR Reward, with the remaining 50% shared among Stake MIR users, regardless of their vote stance. To address unexpected proposal challenges, a snapshot of the total staked MIRs during the voting period is taken to determine vote passage.

Additionally, Mirror Protocol has introduced new collateral options, including MIR, LUNA, ANC, and soon bLUNA and aUST. Collaterals with price fluctuations incur additional security fees, set at 133% to achieve a borrowing ratio of 150% to 200%. Furthermore, Mirror has introduced a mint Short position feature, allowing users to take a short position alongside the existing long option, with the LP token received being sLP. This feature is available for both old and new minting processes.

MIR Token Use Case

Governance: Utilizing MIR enables users to engage in protocol governance and influence the selection of minted assets. Initiating a poll requires users to make a payment in MIR, with the collected amount being distributed among MIR stakers.

Fee Sharing: MIR holders participate in sharing withdrawal fees generated on the Mirror Protocol. Additionally, the project plans to introduce further incentives for MIR in the future.

Staking Reward: MIR is employed to reward users who stake LP (Liquidity Provider) tokens on the platform.

Mirror Protocol Team Background

In December 2020, Mirror was introduced by Terraform Labs (TFL), the same team behind the creation of the Terra blockchain. Founded in 2018 by Daniel Shin and Do Kwon, Terra's mainnet was launched in April 2019.

Mirror Protocol has established partnerships with:

• Band Protocol: Serves as an oracle to update real asset prices.
• Mask Network: Functions as a web portal for DeFi accessible on major social media platforms such as Twitter and Facebook. It enables users to send encrypted messages, cryptocurrencies, and NFTs.
• Unilend Protocol: Operates as a decentralized lending and borrowing protocol, providing users with the capability to list various types of ERC-20 assets.

Mirror Protocol Project Development

Mirror Protocol has experienced a substantial decline, nearly 90% ever since May 2022, with its value plummeting over 99% from its record high of $13 in 2021. The ecosystem has not seen any updates or developments since August 2022, and the social media accounts associated with Mirror Protocol have remained inactive during this period. The protocol faced multiple exploitations and as of Jan 2024, the official website for the protocol is down.