What is Mirror Protocol
Mirror Protocol is a project used to create synthetic alternatives to real-world assets in simple terms. These synthetic assets are called mAssets and mimic exactly the price of the asset they have been bound to and can, of course, be traded on secondary markets such as Terraswap AMM and Ehtereum’s Uniswap. The project is from a company named Terraform Labs.
mAssets currently mirror US equities and ETFs but likely be added in the future.
Mirror Protocol is a decentralized project that is governed by the community via the MIR token that is also used for staking.
Mirror Protocol prides itself in being decentralized and community governed. Even though Terraform Labs founded it, they have no privileged function. The team at Terraform didn’t even premine the token.
The project initially connected its ecosystem with the Ethereum Network to give users the possibility to trade on Uniswap. As the project grew, it also joined itself with the Binance Smart Chain (BSC). Today even the BSC community can create tokenized synthetic assets coined on Mirror Protocol.
All assets that are as of now on the platform are tokenized U.S. equities. However, this will not always be the case. Mirror Protocol gives users the possibility to create the synthetic equivalent of any asset. In the future, mAssets could include artwork, real estate, precious metals, commodities, fiat and cryptocurrencies, and a lot more. There has already been much talk and interest in the community about minting bonds, futures, and other derivatives as mAssets.
At launch, Mirror protocol had these 14 assets on offer: MIR (Mirror), AMZN (Amazon), TSLA (Tesla), MSFT (Microsoft), GOOGL (Alphabet), BABA (Alibaba), AAPL (Apple), NFLX (Netflix), TWTR (Twitter), IAU (iShares Gold Trust), SLV (iShares Silver Trust), QQQ (Invesco QQQ Trust), VIXY (ProShares VIX), and USO (United States Oil Fund LP). And in January 2021, a governance vote decided to also add BTC, ETH, ABNB (Airbnb), GS (Goldman Sachs Group), and FB (Facebook) to the original 14.
As the whitepaper states, almost anything with a price, be it an asset, could theoretically become a synthetic asset on Mirror. But what are the benefits of users trading mAssets instead of the actual underlying asset? Well, a lot:
- 24/7 trading without the need of permission from anyone and from anywhere in the world
- No intermediaries; all transactions are done on the blockchain ledger.
- Users can trade just a fraction of a mAsset, instead of having to own it all necessarily.
- Mirror Protocol, with its tokenization, allows for better and more liquidity.
- By trading assets using smart contracts, traders will incur a lot less legal and operational costs.
- The world of trading is more accessible; by exchanging fractional assets, fewer liquid users will finally be able to participate.
Like we said before, synthetic assets created on Mirror Protocol are also called mAssets. So Tesla (TSLA) will be called mTSLA, and Apple (AAPL) becomes mAAPL, and so on. And mAssets all have the same shared characteristics:
- users create mAsset by locking up 150% of the price of the assets in USDT or 200% if traders decide to use other mAssets as collateral.
- Once traders reach a minimum collateral ratio, as with any equity, more has to be added. If the trader doesn’t do this will have his positions liquidated.
- When traders take out mAsset, the same amount of mAssets issued when opening the CDP must be burnt. The measure repays the collateral used.
- mAssets are listed and exchangeable on many AMM DEXs such as PancakeSwap (BSC), TerraSwap (Terra), and Uniswap (Ethereum). The low trading fees that users will incur serve as rewards for liquidity providers.
- Mirror protocol will update the Oracle every 30 seconds. A measure necessary to guarantee that the mAsset is pegged to the underlying assets. If the oracle and asset price are not the same, traders are incentivized to arbitrage, so the mAsset price goes back to what it should be.
mAssets are bought to be day traded but not only that. The synthetic assets can be held or used for adding collateral in creating new mAssets, creating synthetic stable pools, creating liquidity pools for decentralized exchanges, and a lot more.
And to top everything off, the smart contracts used by Mirror Protocol are incredibly safe, having been audited and secured by a cyber-security firm called Cyber Unit.
Mirror Protocol has its own native MIR token, used mainly for governance, for staking, and as rewards for liquidity providers. In particular, the tips for liquidity providers come from the fees that users pay.
Mir operates with a fixed supply of 370,575,000 tokens that are slowly and gradually released over four years.
Today there are 67,236,656 MIR in circulation. And with a market cap of $335 million, the project is the 229th biggest.
Other than buying it on an exchange, MIR can be earned in three different ways:
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- Users can stake $LUNA, the native token of the Terra project
- By providing liquidity to the MIR/UST pair.
- By providing liquidity to any mAsset/UST pool pairs other than BNB
It should also be noted that Mirror Protocol did not offer a pre-mine or ICO. All of the starting circulating supply of 18.3 million MIR tokens was airdropped to holders of LUNA and UNI, projects with whom Mirror has connected.
Mirror Finance was launched by a South Korean technology company named Terraform Labs. Founded by Kwon and Daniel Shin at the start of 2018, the firm launched its first project Terra (LUNA). And it has since seen massive success, as of today, is the 42nd biggest coin per market cap.
Soon, on the 4th of December 2020, they launched their second major crypto project, Mirror Finance. And their track record doesn’t lie. MIR is in safe hands with the Shinat brothers and Terraform Labs.
As we mentioned earlier, MIR being an utterly decentralized project means that the community plays a significant role in its governance. All users have to do to participate in the decision-making process is stake the MIR token. The more a user locks up in the system, the more voting power he has.
All members can propose new governance changes to the protocols. To do so, users have first to stake some MIR. And if the community rejects your proposal, the staked MIR will be burnt.
On the other hand, if the proposal is accepted, the Mirror Governance Contract automatically implements it.
The whole process is entirely decentralized. Not even the Terra Labs founders have any executive powers. Truly permissionless and completely decentralized, what crypto is supposed to be.
Proposals are discussed in the platforms Telegram group that counts more than 11 thousand members on Mirror Protocol’s forum and subreddit. Proposals are displayed and can be voted for on their website.
Market price prediction
Wallet Investor is exceptionally bullish on MIR, and the website predicts that the coin will reach $30 and an incredible $125 in five years.
Digitalcoin comes in with a less bullish prediction, and the website has set its target for MIR at $6.71 and $13.4 in five years.
Another bullish thesis from Gov Capital predicts that MIR will reach $23 this year and up to £130.58 in five.
My Mirror Protocol Price Prediction 2021
Even if Mirror Protocol only went public on December 3, 2021, the project already sees a lot of use and adoption. The market is loving their product.
Traders have a wide array of options to start using Mirror’s services, either by using the web or mobile app. And I have to say, both have great designs.
On top of that, the community is also very active and has seen much participation in the decision-making process and development of new updates, with new mAssets being often proposed on the forum.
One of the highly anticipated additions to Mirror is the Anchor Protocol product, a savings protocol on the Terra blockchain that offers yield powered by block rewards of major Proof-of-Stake blockchains. Anchor provides a principal-protected stable coin savings product that pays depositors a stable interest rate.
Mirror is a great project. Demand for the decentralization of asset trading, particularly with the younger generation, is always clearer, like the whole Gamestop and Robinhood fiasco proved. Platforms like Mirror Protocol could dramatically level the playing field and lower the entry barriers for new traders worldwide. Maybe, it’s the start of a new era.
My MIR prediction is that the project reaching $22 this year and up to $150 in the next five.
Of course, I am talking about my opinions. This is not financial advice. I could be wrong. You should always do your research before making any investment decision. Remember always to trade responsibly and don’t invest more than what you are willing to lose.
Mirror Protocol price prediction 2025
Based on the data and arguments laid out above, a price of MIR token in 2025 could be in the $10-$50 range. A long term reasonable estimate: ~$17.67
Mirror Protocol price prediction 2030
There are a couple of laws of human progress that prevent us from thinking that Mirror Protocol will be what its holders expect and hope it to be. Those are first mover advantage and consolidation and subsequent monopoly.
A first-mover advantage can be simply defined as a firm’s ability to be better off than its competitors as a result of being first to market in a new product category.
Monopoly is a situation in which a single company or group owns all or nearly all of the market for a given type of product or service.
Both of the phenomena we mention above speak in favor of Synthetic and other bigger competitors, and we don’t think that will change in the mid- and long-term future.
We are still not sure if Mirror Protocol and similar project do have a long-term future and MIR token could be worth ZERO in 2030 as the project might not exist by then. Chances are 50-50 in our eyes for that to happen.
Is Mirror Protocol worth investing in?
Mirror Protocol is a good investment for the short-term when the market is in the BULL run. Usually these types of newer projects do extraordinary well when the overall crypto market is in the green and they outperform other better known projects by a lot. However, make sure to exit them in time as they tend to do get a beating during ranging and bear market cycles.
Why will Mirror Protocol succeed?
Because it does propose a valuable service, it already built a name for itself in its niche and suffered no security breaches or other types of compromises (economic, reputational etc). The token itself does provide utility and makes sense which is not the case with many other similar projects.
Why will Mirror Protocol fail?
Mirror Protocol might fail because of the fierce competition, dynamic technological field and rocket-speed developments in its niche. Another common reason this type of project fails is team issues – either the team splits or outright abandons the project.
Will Mirror Protocol reach $10?
That is within the real of possibility, even in the short term period. It could very well reach $10 within a year.
Can Mirror Protocol reach $100?
Mirror Protocol will almost certainly NOT reach $100 in the foreseeable future, unless we see a face-melting bull run that will see bitcoin at $100k and ETH at $20k.
Where to buy MIR and how to store it
The best place to exchange MIR are:
- Uniswap (buy and sell with: ETH, UST)
- Coinbase Pro (buy and sell with: BTC, EUR, and GBP)
- Gate.io (buy and sell with: USDT and ETH)
And the best places to store KAI are:
Read also our other predictions worth looking into this year:
- Uniswap Price Prediction 2021-2025
- Future Forecast For Cardano (ADA) Price
- Aave Forecast 2021-2025
- Future Forecast For Tron (TRX) Price
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com