About Mirror Protocol Defi Coin
Mirror Protocol Defi Coin is a DeFi protocol powered by smart contracts on the Terra network that enables the creation of synthetic assets called Mirrored Assets (mAssets). mAssets mimic the price behavior of real-world assets and give traders anywhere in the world open access to price exposure without the burdens of owning or transacting real assets.
The minting of mAssets is decentralized and is undertaken by users throughout the network by opening a position and depositing collateral. Mirror ensures that there is always sufficient collateral within the protocol to cover mAssets, and also manages markets for mAssets by listing them on Terraswap against UST.
Quick Fact About Mirror Defi Coin
|DEFI Coin Name||Mirror Defi Coin|
|Circulating Supply||24,709,019 MIR|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To Visit|
|Telegram Group||Click Here To Visit Telegram Group|
|Documentation||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
How It Works
Mirror Protocol allows the creation of fungible assets, “synthetics”, that track the price of real world assets. Mirror synthetics are intended to be used as key building blocks in smart contracts, and to bring the world’s assets to the blockchain.
- To mint a Mirror asset (mAsset), an issuer must lock up > 150% of the current asset value in Terra stablecoins OR mAssets as collateral. If the value of the asset rises above the collateralization threshold, the collateral is liquidated to guarantee solvency of the system.
- To target the price of the mAsset, the system reads in underlying asset prices via a decentralized price oracle – prices are updated every 30 seconds. When the price of the mAsset drifts significantly from the primary market, traders are incentivized to purchase / sell the asset to mint / burn to claim the collateral.
- To burn a mAsset, the issuer must burn the equal amount of mAssets issued when opening the CDP – the collateral is then returned to the issuer.
Developed by the community
The Mirror Protocol is entirely built and governed by the community of MIR token holders, which is fairly distributed via liquidity and platform incentives without a team or investor pre-mine. MIR tokens can be used to propose and vote on important changes to the protocol here.
Security is core to our values, and we value the input of hackers acting in good faith to help us maintain the highest standard for the security and safety of the Mirror ecosystem. The Mirror protocol, while it has gone through professional audits and formal verification, depends on new technology that may contain undiscovered vulnerabilities.
Mirror encourages the community to audit our contracts and security; we also encourage the responsible disclosure of any issues. This program is intended to recognize the value of working with the community of independent security researchers, and sets out our definition of good faith in the context of finding and reporting vulnerabilities, as well as what you can expect from us in return.
Mirror offers substantial rewards for discoveries that can prevent the loss of assets, the freezing of assets, or harm to a user, commensurate with the severity and exploitability of the vulnerability. Mirror will pay a reward of $500 to $150,000 for eligible discoveries according to the terms and conditions provided below.
Mirror Token (MIR)
The Mirror Token (MIR) is Mirror Protocol’s governance token. Currently, it must be staked to vote on active polls and is required as a deposit for making new governance polls. In future iterations of Mirror, it will serve further purposes for the protocol that increase its utility and value.
Users that stake MIR tokens also earn MIR rewards generated from withdrawing collateral from CDP positions within the protocol.
MIR is also used to incentivize users to farm yields by staking LP tokens which were minted by providing liquidity for MIR and mAssets. Yield is paid to the users from MIRs that are newly minted through annual inflation, which gradually increases the total supply of MIR until the end of 4th year.
MIR and mAssets pools also exist on Uniswap which runs on Ethereum. Assets from Mirror Protocol can be transferred to Ethereum chain through a custom bridge named Shuttle. Shuttle facilitates cross-chain transfers between Terra and Ethereum, thereby enabling Terra blockchain assets, including MIR, mAsset and UST, to be transferred to and traded on Uniswap.
Assets transferred from Terra to Ethereum will have the same name and ticker, but these tokens will follow the ERC-20 token standard and backed 1:1 in value by its underlying CW-20 assets such as MIR and mAssets on the Terra blockchain. This allows users to trade and provide liquidity for all types of Mirror Protocol assets on both Terraswap (Terra) and Uniswap (Ethereum).