What is Mirror Protocol (MIR)?
Mirror Protocol is a decentralized blockchain-based protocol for synthetic assets that operates in the sector of decentralized finance. Mirror Protocol provides tools and features that allow users to create their own synthetic assets which are tokenized versions of real-life assets, like stocks or commodities.
The synthetic assets that are created with Mirror Protocol are known as Mirrored Assets or mAssets. Mirrored Assets reflect the price of the real-life financial assets that they represent, hence the name of the project. Mirror Protocol is hosted on the Terra blockchain, which allows it to perform cross-chain and multi-chain operations. That is how users can access Binance Smart Chain and the Ethereum network with Mirror protocol. The protocol is powered by smart contracts.
The idea behind the project is to enable users to trade US equities 24 hours a day and any day of the week. Trading can be done by any person anywhere in the world, so the entry barrier is lowered to accommodate easy access to the financial market. Thanks to the technology used by Mirror Protocol, users can manage and trade tokenized assets by creating synthetic assets without ever owning the actual stock or commodity they represent.
MIR is the utility token of the protocol and plays an integral role in the governance system. MIR can be staked to get voting rights, so users can earn a share of the fees from collateralized debt positions.
How Does Mirror Protocol Work?
Mirror Protocol is based on the Terra network and is powered by smart contracts, which is how the network enables users from around the globe and with different backgrounds to easily trade commodities, stocks, and other financial assets. Mirror Protocol allows users to create synthetic assets that reflect the real-time and real-life value of the assets they represent.
Terra network is a blockchain-based decentralized protocol that enables developers to create DeFi software, decentralized applications, and protocols. Terra runs on a Delegated Proof of Stake consensus mechanism based on Tendermint, which creates a perfect environment for protocols such as Mirror. The network combines DPoS with the Cosmos SDK to provide tools for synthetic assets, known as mAssets. Users can create synthetic assets that mirror the value of real-life assets by creating a position on the protocol. The user then needs to deposit collateral, while the system regulates the collateral supply, making sure there are always plenty of funds to cover the value of mAssets.
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The market for mAssets is then facilitated on the Terraswap platform and all synthetic assets are listed against UST, Terra’s dollar-pegged stablecoin. Mirror Protocol is also used for adding liquidity to the network, swapping, and other operations. The system includes the Mirror Token (MIR), which is used as a reward for network participants who secure the network.
Who Are the Founders of Mirror Protocol? (History of Mirror)
Mirror Protocol launched in 2020 and was created and developed by Terraform Labs, a company based in South Korea that also created the Terra network. The CEO and co-founder of Terraform Labs and Mirror Protocol is Do Kwon.
The Mirror Protocol is completely decentralized and run by MIR holders. MIR tokens are not pre-mined and are fairly distributed among network participants according to their role in the protocol. The main idea behind the project is to enable easy entry into financial markets while facilitating liquidity to support the creation of synthetic assets.
What Makes Mirror Protocol Unique?
Mirror Protocol offers a unique opportunity for users to trade tokens without owning actual financial assets like stocks or precious metals. This system of tokenization of real-life assets lowers the entry barrier for traders from around the globe. Mirror Protocol allows anyone from anywhere in the world to trade tokenized assets 24 hours a day, 7 days a week.
The protocol achieves this by using smart contracts to enable users to create synthetic assets based on any real-life value and trade these assets in a highly transparent and accessible manner. The uniqueness of the project is also seen in other features that make Mirror Protocol a top DeFi network. Users can add liquidity and earn rewards based on participation, while the entire governance system is decentralized and democratized.
What Gives Mirror Protocol Value?
Mirror Protocol draws its value from the technical capacity of the project, the technology behind it, features used in the system, and its utility. Mirror Protocol’s utility allows anyone to create synthetic assets without owning the underlying assets themselves. Instead, the system uses smart contracts for collateralization to maintain the value of mAssets.
The intrinsic value of Mirror Protocol can be seen in its technology, while the technical value of Mirror Protocol doesn’t always match the market price of MIR. The price of MIR is susceptible to frequent changes and trend reversals, which is why MIR can often be underbought or overbought.
How Many Mirror Protocol (MIR) Coins Are There in Circulation?
There are currently MIR in circulation out of a total of MIR. Mirror Protocol has a limited supply of MIR coins, much like many other cryptocurrencies, including Bitcoin (BTC). The limited supply means that no new MIR tokens should be minted after the total supply of coins is in circulation.
The finite supply acts as an anti-inflation mechanism, preventing the devaluation of MIR tokens through inflation. The number of MIR tokens in circulation multiplied by MIR’s current price equals the market capitalization of Mirror Protocol. The market cap defines the rank of MIR in comparison with other cryptocurrencies and also determines its dominance and market share.
Other Technical Data
The system is based on the Terra network, so whenever a user wants to create an mAsset, the Mirror Protocol uses tokens such as TerraUSD (UST) stablecoins to collateralize the creation of synthetic assets. UST itself uses a system of consistent mining rewards to keep its value stable.
The network runs with the help of two different types of participants, minters and traders. Minters are network participants who create mAssets, forming the market of synthetic assets. Traders buy and sell mAssets on exchanges that are supported by the protocol.
The prices of mAssets always match the real-life prices of the stocks and other assets they represent. To achieve this, Mirror Protocol uses an oracle feeder from Band Protocol as of 2021.
How is the Mirror Protocol Network Secured?
Mirror Protocol is secured through the Tendermint Delegated Proof of Stake consensus mechanism used by Terra network, on which the protocol is hosted and developed. The governance of the network is democratized, which means that the network is fully decentralized and depends on the decision-making of the majority of MIR holders. Users stake MIR tokens to get their voting rights and to create new governance polls to ensure decentralized governance.
Mirror Protocol is also available on Ethereum and Binance Smart Chain and is secured through smart contract audits that are performed regularly. The value of mAssets is secured through collateralization as users need to deposit collateral to be able to create synthetic assets on the Mirror Protocol.
How to Use Mirror Protocol
Mirror Protocol is used to create synthetic assets that mirror the real-life and real-time value of assets in traditional financial markets. Anyone can create mAssets from anywhere in the world, which lowers the entry barrier for trading stocks, commodities, and other assets.
Mirror Protocol is also used to add liquidity to the market of synthetic assets, while the team behind the project plans to add more features to the network, such as earning a yield for holding stocks, dynamic ETFs, and margin trading.
How to Choose a Mirror Protocol Wallet?
There are plenty of places you could store your MIR and the type of wallet you choose will likely depend on what you want to use it for and how much you need to store.
Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of MIR for more experienced users.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of MIR or more novice users.
Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your MIR, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your MIR tokens without hassle. Storing your MIR with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling MIR, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
Mirror Protocol Staking
Protocol users can stake MIR tokens with the Gov contract, or LP or sLP tokens with the Staking contract in order to earn staking rewards in MIR. LP and sLP token stakers receive rewards from the new MIR minted each block, while the rewards for MIR stakers come from CDP withdrawal fees.
Mirror Protocol is one of the top projects in the DeFi sector, built and hosted on the next-generation platform, Terra, that can support dApps and protocols focused on decentralized finance. As a relatively new project, Mirror Protocol has already come a long way, thanks to its technology, technical capacity, and use cases, which keep evolving.
As the sector of DeFi grows in popularity, Mirror Protocol is becoming a more relevant project that offers ultimate accessibility to all the financial assets that would otherwise be unavailable for trading to a great number of traders around the globe.
Join the crypto revolution and start your Mirror Protocol journey today!
Mirror Protocol FAQ
What types of collateral can be used to create mAssets?
Mirror Protocol accepts UST and all other mAssets as collateral. Users can also collateralize any other token that has been whitelisted by the community, which includes LUNA, MIR, ANC, and aUST.
Are there any KYC requirements for trading mAssets?
As well as protocol governance, the whitelisting, minting, and trading of mAssets are done in a decentralized manner. This means that anyone can perform all Mirror Protocol and Terraswap functions without going through a KYC process – all they need is a UST balance.
How to buy Mirror Protocol?
Buying MIR is as easy as visiting Kriptomat’s how to buy Mirror Protocol page and choosing your preferred method of payment.
How to sell Mirror Protocol?
If you already own MIR and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.
Mirror Protocol Price
Mirror Protocol price is subject to frequent changes in the market, which involves trend reversals and dynamic dips and spikes. You can check live MIR prices on Kriptomat and follow up with the latest trends in the cryptocurrency market with available charts and relevant market data.
As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, the price of MIR is also influenced by demand for the governance rights and staking rewards it provides.
The current Mirror Protocol price is EUR.
The 24-hour trading volume of MIR is EUR. MIR is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of MIR and a max supply of MIR.
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