Article Summary, Automatically Generated By AI
Summary of Mirror Protocol
Key Points
- MIR is the governance token of Mirror Protocol, a decentralized synthetic assets protocol on the Terra blockchain.
- Mirror Protocol is community-driven, with no admin keys or special access privileges.
- Mirrored assets are synthetic tokens that reflect real-world asset prices, offering fractional ownership, open access, and censorship resistance.
Advantages of Mirrored Assets
- Global Accessibility: No entry barriers for global access to foreign equities and forex markets.
- Fractional Orders: No need for intermediary bundling process, orders are represented as a number on the blockchain.
- Nearly-Instantaneous Order Execution: Orders can
Introducing Mirror Protocol: A Revolutionary DeFi Innovation
Mirrored Assets: A Novel Concept in Digital Finance
MIR is the governance token of Mirror Protocol, a pioneering synthetic assets protocol meticulously crafted by Terraform Labs (TFL) on the Terra blockchain.
Mirror Protocol is inherently decentralized from its inception, with an on-chain treasury and code modifications governed by the collective decision-making of MIR token holders. Notably, TFL has relinquished any claim to MIR tokens, neither retaining nor selling them, and has not been granted admin keys or special access privileges. This deliberate design ensures a truly decentralized, community-driven project, where decision-making authority rests solely with the community.
Mirrored assets are blockchain tokens that replicate the behavior of real-world assets, mirroring their exchange prices on-chain. By doing so, they provide traders with price exposure to real assets while offering the benefits of fractional ownership, open access, and censorship resistance inherent to any cryptocurrency. Unlike traditional tokens, which serve as representations of an underlying real asset, mAssets are purely synthetic, capturing solely the price movement of the corresponding asset.
Mirrored assets offer a multitude of benefits, including:
- Global Accessibility: Beyond Europe and North America, access to foreign equities and forex markets is severely restricted. Cryptocurrencies, however, offer unfettered global accessibility, unencumbered by entry barriers.
- Fractional Orders: In traditional finance, executing a fractional order necessitates the bundling of multiple fractional orders to facilitate a single transaction, thereby introducing additional latency. By leveraging blockchain technology, order volumes are simply represented as numerical values on the blockchain, eliminating the need for intermediary bundling processes.
- Nearly-Instantaneous Order Execution: Owing to liquidity constraints (price-time-priority order book algorithm), orders can languish for up to a day before full execution. In contrast, Mirror’s reliance on individual asset pool liquidity enables orders to be executed at a pace approximating the network’s block time (~ 6 seconds).