Mirror Protocol is a decentralized exchange platform that enables the creation and trading of synthetic tokens. Built on the Tetra blockchain and powered by smart contracts, it aims to provide borderless access by linking traditional finance with the DeFi ecosystem. The network runs on the Delegated Proof of Stake (DPoS) consensus model. The protocol issues synthetic products known as Mirrored Assets, or mAssets. Because these assets are synthetic, they can be traded for exposure to both digital and real-world assets without needing to hold the corresponding underlying holdings. The system is designed to work without intermediaries. mAssets can be used across Terra, Ethereum, and Binance Smart Chain networks. 

Mirror Protocol was developed by Terraform Labs (TFL), the team behind the Terra blockchain, with a goal of improving the technology’s capabilities. The company is headquartered in South Korea. The protocol went live in December 2020, with the objective of supporting mAssets with at least half UST as collateral. 

Mirror Protocol’s architecture is intended to be decentralized. At launch, it was operated by the community with no special privileges for particular users or developers. There are five categories of participants: Minters, Liquidity Providers, Stakers, Traders, and Oracle Feeders.

MIR token was issued at the end of 2020 specifically to support liquidity providers on the blockchain. During its growth phase, Mirror became the 15th largest DeFi protocol by Total Value Locked in mid-2021.

What are MIR key features and how does it work?

Synthetic assets let users gain exposure to an asset without actually owning the underlying resource. This approach helps enable worldwide access to financial markets. The main benefits of using synthetic assets instead of conventional real-world derivatives include low transaction fees for Mirror Assets and improved speed.

Here are the advantages in more detail: 

The protocol’s structure is built to address common challenges seen in similar blockchain-based systems. When more than half of the collateral is denominated in UST, the protocol enables the minting of new mAssets against the value that has been locked. Compared with other derivative-focused protocols, this can reduce capital requirements. To mint an mAsset, users must lock 150% of the current asset value in UST as collateral.

Minting Mirrored Assets is fully decentralized. After collateral is deposited, an asset can be minted.

The MIR token is used for governance. It also enables staking for users who supply liquidity to automated market makers (AMM). 

MIR is Mirror Protocol’s governance token. It can be used for voting once a user has staked it in the protocol, and stakers receive MIR rewards as well. At first, these tokens were allocated to community participants, and the company states that no developers received the initial airdrop.

Mirror Protocol uses the Tendermint Delegated Proof of Stake consensus mechanism, the same approach used by the Terra network. Governance is fully decentralized and intended to be democratized, with outcomes determined by the majority of staked tokens. Developers and early investors receive no special status.

Where can you buy MIR?

You can purchase MIR on multiple exchanges, including Binance, OKX, Coinbase, Huobi Global, and KuCoin. Trading pairs include stablecoins (USDT) and cryptocurrencies such as BTC and ETH. FIAT purchase options are also available.

How can you store MIR?

Because MIR is the token on the Terra blockchain, any wallet that supports CW20 tokens should be able to hold it. For instance, Terra Station is one of the most widely used Terra-compatible wallets.

Mining

MIR is not a mineable cryptocurrency, though minting and staking are supported. Its supply is capped at a maximum of 370,575,000 coins.