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What is Mirror Protocol And How Synthetics With Real World Assets is a Game Changer in Crypto DeFi

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Unknown Speaker  0:01  

Welcome to the New To Crypto podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you, coming at you from the training center in the lifestyle design studio. Here’s your host Crypto Travels Michael.

 

Michael  0:52  

Hey, welcome to today’s show. Well, I’ll tell you, we  broke 800 cities. So people have chimed in and listened to this podcast now in over 800 cities around the world. So I truly thank you. And I’m excited to be here. And I’m working on a lot of content right now. And some really good things to share with you here in the future. So without further to do, let’s dive into today’s episode. It’s a really exciting project, which I’m happy to share with you today. And it’s all about mir protocol. What is Mirror protocol, and it’s powered by Terra network. And everyone’s talking about it right now. So let’s dive into today’s episode. Powered by Terra network, Mirror protocol enables synthetic assets that they call mAssets that mimic the behavior of real world assets, such as stocks. So what is Mirror protocol, they also have their own token. It’s called MIR. 

 

And it’s an Ethereum token that governs the Mirror protocol which allows the creation of fungible assets that track the price of real world assets. So the project aims to enable 24/7 equities trading by minting synthetic versions of the real thing, so MIR tokens can be used to propose and vote on important changes to the protocol. The Mirror protocol is a unique project that enables the creation of synthetics to gain on chain price exposure to real world assets. Through the use of advanced smart contracts, the platform allows anyone to issue and trade synthetic assets that monitor and track the price of arbitrary real world assets. The mere protocol accomplishes this task via collateralized smart contracts that remain stabilized via the algorithm on the blockchain. This next part is taken from the… sorry. I think it sums it up perfectly. 

 

Mirror protocol is a Defi protocol, built on the Terra blockchain to create synthetic assets called mere assets, or mAssets. mAssets mimic the price behavior of traditional and digital financial assets to trade with no intermediaries to gain price exposure without purchasing the underlying assets. mAssets are designed to be composable and portable across the Terra, Ethereum and Binance smart chain networks. Users can mint mAssets in exchange for Terra stablecoins and mAssets deposited into collateralized debt positions, or CDP’s. The protocol maintains CDP’s to stabilize mAsset value under community management. So I’m aware I just shared with you several different definitions, if you will, about near protocol. It’s a little complicated just to break it down verbally so I wanted to kind of share with you to help paint a better picture for you. So now let’s break down how it works. Mirror protocol allows the creation of fungible assets, synthetics that track the price of real world assets.

 

Mere synthetics are intended to be used as key building blocks in smart contracts and to bring the world’s assets to the blockchain. I like how kriptomat describes the following: Mirror protocol is a decentralized blockchain based protocol, for synthetic assets that operates in the sector of decentralized finance or Defi. Mirror protocol provides tools and features that allow users to create their own synthetic assets, which are tokenized versions of real world 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 protocols powered by smart contracts. 

 

So I really liked how they worded that. So I just wanted to unpack and kind of share that with you. So what’s the history of Mirror protocol, Mirror was developed by Terraform labs. And this is the group behind the Terra blockchain, that’s dedicated to building out the Terra tooling and application ecosystem. So Terraform labs launched a Mirror protocol in December of 2020, to create price stable liquid derivative assets on the Terra network. So let’s break down what problems does Mirror protocol solve? There are many problems that the developers behind the Mirror protocol have set out to fix. Primarily the goal of the project is to speed up the integration of traditional assets entering the blockchain sector by providing exposure to these assets via synthetics, anyone can participate in the market. 

 

So let’s break down there in MIR token, okay, the following is taken from Coinmarketcap. MIR is the governance token of near protocol as synthetic assets protocol built by Terraform labs on the Terra of blockchain. Mirror protocol is decentralized from day one with the on chain treasury, and code changes governed by holders of the MIR token. TfL has no intention of keeping or selling MIR tokens, and there are no admin keys or special access privileges granted. The intent for this is to be fully and completely decentralized, community driven project. Mirrored assets are blockchain tokens that behave like mirrored versions of real world assets by reflecting the exchange prices on chain. They give traders the price exposure to real assets while enabling fractional ownership, open access and censorship resistant as any other cryptocurrency. Unlike traditional tokens, which serve to represent a real underlying asset, mAssets are purely synthetic and only capture the price movement of the corresponding asset. 

 

Mirrored assets provide the following advantages, global accessibility in most markets outside of Europe and North America, access to foreign equities and forex markets is highly limited. Number two is fractional orders. In traditional finance to execute a fractional order multiple fractional orders are bundled together to execute one transaction by utilizing the blockchain orders volume in simply represented as a number on the blockchain, so there is no need for the intermediary bundling process. Number three is nearly instantaneous order execution. Mirror relies on liquidity providing by each individual asset pool in orders can be executed as fast as the block time of the network, which is said to be like six seconds. So let’s break down some info about the MIR tokens now. 

 

Currently, the circulating supply is just over 77 million tokens. And the market cap is just over $236 million. The Mar token is currently trading at just over $3. And I have to say that Mirror protocol is an exciting project. This is one that I’ll definitely continue to follow. I am intrigued by what they are doing and how they are bridging real world assets via synthetics into Defi. I trust that this has been informative for you today. Be sure to like and subscribe to the podcast if you like today’s episode, I have a special bonus coming up for our loyal listeners. I’m currently designing my first NFT collection and I’m going to give away some NFTs to some of the community here when the NFT collection is dropped. So stay tuned here for details on how to win your very own crypto travel cyberpunk themed NFT. I’ll meet you here tomorrow for another awesome episode. Until then, make it a great day.

 

Unknown Speaker  9:38  

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By: cryptotravelsmichael
0

Table of Contents

What Is Mirror Protocol? 

Mirror Protocol is a decentralized finance (DeFi) platform that lets users create synthetic assets or crypto tokens that mirror the price of real-world assets like equities. Synthetic tokens allow investors to participate in the price of the real-world assets they signify without having to possess them. 

As a result, traders who would typically be barred from trading certain underlying assets due to location or a lack of cash stand to profit from price swings. 

Similarly, on automated market makers (AMMs) like Uniswap or Terraswap, synthetic assets can be quickly swapped for other synthetic assets or stablecoins.

Mirror Protocol is based on the Terra blockchain, but its synthetic assets, known as Mirror Assets (mAssets), are also accessible via bridges on Ethereum and Binance Smart Chain (BSC). The holders of Mirror token (MIR), the protocol’s native governance token, manage it.

Features Of Mirror Protocol 

On the Mirror Protocol, synthetic assets are referred to as mAssets. You must first deposit collateral to the protocol before minting a mAsset which will amount to over 150% of the current value of the real-world asset. TerraUSD (UST), a stable coin minted by Terra, and mAssets are accepted as collateral. 

If the real-world asset’s value climbs to the point that it exceeds the value of the collateral you deposited, your collateral will be liquidated to keep the system afloat. You must first burn the mAssets supplied to you if you want to redeem your collateral.

You could even trade mAssets on AMMs like Uniswap and Terraswap by interacting with liquidity pools. mAssets can be exchanged 24 hours a day, but they will only be created during real-world market hours, just like the stocks and bonds which act as their underlying index value.

Mirror Protocol uses decentralized oracles that update every 30 seconds to get price data on the assets that its tokens represent. The price of Mirror Protocol’s mAssets is soft-pegged to their real-world counterparts, and the peg is maintained by a mixture of minting liquidations, arbitrage, and governance.

Mirror protocol is an exciting project… I’m intrigued by what they’re doing and how they are bridging real world assets via synthetics into DeFi

- Crypto Travels Michael

Here's What We Discussed in Detail in This Interview

[00:01 – 01:42] Opening Segment

  • Let’s ulearn a bit more about Mirror Protocol 
  • An in depth definition of Mirror Protocol 
    • Enables synthetic assets to mimic real world assets
      • Ex: Think Stocks 

 

[04:03 – 06:03] Everything You Need to Know About Mirror Protocol

  • What is MIR and how is this project being applied?
    • MIR Token – Ethereum based token
    • Allows the creation of fungible assets to track real world assets
    • Gain ‘on-chain’ price exposure to real world assets
  • Summary of MIR from Messari
    • DeFi protocol built on Terra Blockchain 
    • mAssets mimic the price behavior of traditional/digital assets
  • How it works
  • A look at MIR’s history 
    • Created by Terraform Labs
    • Made in 2020 

 

[06:04 – 10:16] Why this is a Game Changer in Crypto DeFi

  • I break down the problems Mirror Protocol solves
    • Speed up integration of traditional assets
  • The breakdown and benefits of MIR 
    • An explanation from Coinmarketcap
    • How MIR acts differently from other coins 
    • Global accessibility
    • Fractional orders 
    • Nearly instantaneous order execution
  • A look at the state of MIR Token
    • Circulating supply of a little over 77M Tokens 
    • Market cap of over $236M
    • Trading at just over $3 at the time of recording
  • Definitely keep an eye out for Mirror Protocol 
  • Final Announcements 
    • Stay tuned to the show to learn how to win a free NFT

Killer Resources

HOW TO REACH TO CRYPTO TRAVELS MICHAEL

Final Thoughts

Traders in decentralized finance (DeFi) are increasingly interested in synthetic assets, which they think can help bridge the divide to the old financial system. This allows traders from all over the world to obtain exposure to equities and other assets.

Mirror Protocol aims to fill this need by offering synthetic stock versions. Users can mint synthetics by placing collateral and trading them on automated market makers using the protocol. Holders of the protocol’s native Mirror token are in charge of it (MIR).

Mirror Protocol (MIR) is an Ethereum token that administers the Mirror Protocol, which allows fungible assets to monitor the price of real-world goods.

The goal of the project is to make it possible to trade stocks 24 hours a day, seven days a week, by creating synthetic replicas of the genuine thing. MIR tokens can be used to recommend and vote on significant protocol modifications.

The New to Crypto Podcast is designed to guide you through the crypto landscape with pinpoint accuracy. New episodes are added daily. Be sure to subscribe to the podcast and listen to all of the episodes to help you in your cryptocurrency journey.

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