So these mirrored assets are back by nothing but game

Question

So these mirrored assets are back by nothing but game

theory? The protocol doesn’t earn any real dividends, no governance nor liquidation privileges from mirrored stock? I think I mostly understand how they maintain their price peg but i just don’t understand why anyone would hold these other than for psuedo-privacy provided by blockchain. Also I can’t find a good explanation on why there is such a high premium for most mAssets, and, last question, is there no interest on borrowed mAssets?

#cryptocurrency #english #mirror.protocol

0

09.03.2022

5 ответов

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Marek Ortiz Автор вопроса

Circulus Albus
Read the forum. Everything will be clear in the fi...

Thanks. I was read the white paper, but could you direct me to the forum you are referring to?

0

09.03.2022

Mayank Grover (Will never DM first or ask for funds)

The oracle price of mAssets are backed by real world stock prices, along with that premiums depends upon the buying and selling of mAssets on TerraSwap and it's called TerraSwap price at which mAssets are being traded. And yes, there is no interest on borrowing mAssets but you have to provide collateral to borrow mAsset.

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09.03.2022

Mayank Grover (Will never DM first or ask for funds)

Long position doesn't lead to any kind of pressure on the market, it's only lead to increase in liquidity. Short position leads to decline in price because it sells the shorted mAsset which will lead to decline in TerraSwap price.

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09.03.2022

Circulus Albus

Mayank Grover (Will never DM first or ask for funds)
Long position doesn't lead to any kind of pressure...

Ok understood. So basically minting new massets always lowers the price. The problem is that there are too many shorts and not enough people to buy the actual asset? So this results in permanent negative premiums?

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09.03.2022

Circulus Albus · Accepted Answer

Circulus Albus

Read the forum. Everything will be clear in the first couple of posts. But you are on point with your questions. Also read the V3 post from jun/jul 2021. They plan to stop paying rewards in MIR and start doing it in massey/ust by collecting fees from LPs. The premiums are high because there are big short positions that arent being closed. People are doing delta neutral.

0

09.03.2022

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So these mirrored assets are back by nothing but game

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