WHAT IS MIRROR PROTOCOL || 10% beneficiary to @tron-fan-club
Mirror Protocol allows anyone in the crypto space to buy and sell a synthetic asset that tracks the price of actual world assets like real estate, physical gold, and company stock. Mirror does this by just creating a token that tracks the real price of assets like gold, stock, and real estate and they track the price through an Oracle. Synthetic assets help people to own a value of an asset they wish to own with crypto.
One advantage is that all the entire assets are back stablecoins such as USDC. The user of Mirror uses some assets to mint the MIR asset. Mirror token is inflationary because they will always mint more of the today every day and that will affect the price. You should know that Mirror started on Terra blockchain, the mirror developers may have their reason why they do not develop the protocol on blockchains like Binance smart chain, Ethereum, or Polygon blockchain. The good thing is that users can move their token to the Ethereum blockchain even though the token wasn't created on the Ethereum blockchain.
- MINTING
If you want to create these assets, you will have to lock at least 150% of the value of that asset, thereafter you will be able to create a new token to will represent that asset. For instance, if the asset is gold, you will be able to mint a token that will represent gold. You can a token that mirrors any asset. For example, you can look at your ETH on the terra blockchain to get a mirror ETH. The terra blockchain will borrow mETH and you can later remeed the token to get the value of real Ethereum.
- TARGETING
You might be wondering how the token will remain at the true price of the real asset. The thing is that the asset will always be back by the minimum of 100% value of the real asset and that means that if the token price goes up beyond the value of collateral, the collateral will be liquidated. The actual price of a certain asset is tracked by an Oracle and what an Oracle does is track the real-world price of an asset.
- BURNING
If you do not know already, burning is the direct opposite of minting. What you will be doing is trading the mAsset that you borrowed for the actual value of the asset that you locked up. For instance, Tesla has a minimum token lock-up of 150%, which means you lock up at least 150% of the Tsla token. Let's assume that the price of Tesla stock is currently at $1,000, which means you will have to look up the minimum of $1,500 USDT but if you lock up $1,500 USDT, you have a high risk of getting liquidated easily. You can lock up about 200% USDT, these will allow you not to easily get liquidated.
One of the things people can do to earn after minting a certain token in the mirror protocol is to provide liquidity to earn transactions when people exchange their tokens. You can also sell their mTsla token and later buy the token back in the future to gain more profit. You can stake the token that you have minted to earn more Mirror tokens. You should mint a mAsset only if you have anything useful you want to use it for, better still you can buy from someone else.
You should know that you can trade your mAsset for another token, and you can also transfer them to another network. mAsset is also on the Ethereum network.
The mirror protocol has its own native token called Mirror token (MIR) and it uses to reward people who stake their mAsset it is also used to vote on new development on the platform. It is not advisable for anyone to buy this token because it is inflationary. Mirror has something use
https://twitter.com/special78122/status/1558004921903026176?s=20&t=Ck1Qu-8v7r1ZJWVhafl9hQ
I have been hearing about the mirriow protocol but reading through this post have throw more light at it for me.
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