What Is Mirror Protocol (MIR)?
MIR is the native token of the Mirror Protocol, which is a Terra-based derivative protocol that allows users to create synthetic assets. Even though the Mirror Protocol is built on the Terra blockchain, by using Terra Shuttle, it can be integrated into Binance Smart Chain and Ethereum.
Take a look at the Mirror Protocol price chart above if you want to see the current MIR price.
The synthetic assets created on the Mirror Protocol are known as Mirrored Assets or mAssets. They maintain the core values of cryptocurrencies while reflecting on-chain exchange prices of real-world assets, giving traders price exposure to these assets. Real-world assets mirrored by mAssets include stocks, commodities, derivatives, and indices.
Just keep in mind that mAssets are entirely synthetic since they merely track the price movements of related assets, as opposed to standard tokens, which act as representations of underlying assets.
Some of the primary benefits of mAssets include global access to the FX and stock markets, hassle-free fractional orders, and almost instant order finality.
How Do mAssets Work?
In order to mint mAssets, users have to create collateralized debt positions (CDP), which are short positions opened against the reflected asset's price changes. CDP can be opened using other Mirrored Assets or UST stablecoins as collateral. The Mirror Protocol charges a 1.5% CDP fee for opening new positions, as well as withdrawing collateral from these positions.
Since mAssets reflect the prices of real-world assets, it’s important to constantly follow their prices. In order to do that, the Mirror Protocol utilizes a price oracle, which monitors the prices of real-world assets and reports them every 30 seconds. Whenever the price of a certain real-world asset increases, mAsset minters have to deposit more collateral. If it’s the opposite situation, they have to withdraw a portion of their collateral.
Note that the collateral can be withdrawn at any time. It can either be fully withdrawn by burning mAssets, or it can be withdrawn in certain portions to stabilize mAsset prices, as it was just mentioned.
The Purpose of MIR Tokens
MIR is the governance token of the Mirror Protocol. It allows users to vote on various decisions that determine the future development of the Mirror Protocol crypto project. In order to earn governance rights, Mirror Protocol token holders have to stake their assets. They are rewarded with a portion of the CDP withdrawal fees for doing that.
Interested in purchasing Mirror Protocol coins? Before doing that, check out the live MIR price featured on the aforementioned Mirror Protocol price chart.
