Mirrored Alibaba (mBABA) Coin Review : It Is Good Or Bad Review

About Mirrored Alibaba (mBABA)

Mirrored Alibaba (mBABA) Traditional asset classes have yet to enter the transparent, censorship resistant and globally accessible universe of public blockchains. Geographical barriers, high transaction costs and liquidity constraints make it hard for the average person to invest a small amount in assets like stocks and real estate. Asset tokenization has the potential to break down many of those barriers via blockchain reflections of traditional assets that are globally accessible, infinitely divisible and cheap to transact in. They present Mirror, a protocol that allows anyone to issue and trade synthetic assets that track the price of arbitrary real world assets without physical backing. Mirror enables two markets with well-balanced incentives: a market for minters to safely issue overcollateralized synthetic assets, and a market for traders to gain exposure to them. Mirror has the potential to democratize finance by making assets of all shapes and forms accessible to anyone, anywhere in the world.

Mirrored Alibaba (mBABA) Blockchain technology has been adopted in a wide variety of industries thanks to its core properties of accessibility, transparency and immutability. Public blockchains, meaning those accessible by virtually anyone with an internet connection, have enabled unprecedented access to capital and to non-sovereign assets such as Bitcoin. Despite those developments, the financial industry remains closed and inaccessible, only experimenting with private blockchains which restrict access to specific parties. Indeed, access to financial assets such as stocks, bonds and derivatives remains a challenge for most of the world outside of America and Europe. We believe that a necessary requirement for an open financial system is open, unfettered access to financial assets.

Mirrored Alibaba (mBABA) Storage Key Points

How It Works

Mirror Protocol allows the creation of fungible assets, “synthetics”, that track the price of real world assets. Mirror synthetics are intended to be used as key building blocks in smart contracts, and to bring the world’s assets to the blockchain.

To mint a Mirror asset , an issuer must lock up > 150% of the current asset value in Terra stablecoins OR as collateral. If the value of the asset rises above the collateralization threshold, the collateral is liquidated to guarantee solvency of the system.

To target the price of the mAsset, the system reads in underlying asset prices via a decentralized price oracle – prices are updated every 30 seconds. When the price of the mAsset drifts significantly from the primary market, traders are incentivized to purchase / sell the asset to mint / burn to claim the collateral.

To burn a mAsset, the issuer must burn the equal amount of mAssets issued when opening the CDP – the collateral is then returned to the issuer.

Advantages of Asset Tokenization

Reduced Geographical Barriers

As all the relevant information and records of previous transactions are stored on a permission less blockchain, individuals can transact from anywhere in the world.

Reduced Reliance on Middlemen

The traditional need of a middleman trusted by involved parties to validate and facilitate transactions is eliminated thanks to the blockchain’s immutability and transparency.

Reduced Reliance on Middlemen

The traditional need of a middleman trusted by involved parties to validate and facilitate transactions is eliminated thanks to the blockchain’s immutability and transparency.

Increased Transaction Efficiency

Blockchain transactions can dramatically improve efficiency of traditional settlements by reducing time and cost. Complex transactions can be automated via smart contracts, thereby reducing legal and operational costs and minimizing the risk of disputes.

Mint:

Anyone can mint an mAsset by locking up collateral, either in the form of a stablecoin or a different mAsset. The required collateral is at least a minimum multiple of the asset’s value (150% for stablecoin collateral, 200% for mAsset collateral). For instance, if stock X is reported to be trading at $100, minting 1 mX would require at least $150 in stablecoin, or $200 in a different mAsset.

Burn

To burn an mAsset, the issuer must burn the amount initially issued to receive the locked stablecoin collateral.

Trade

mAssets are tradable on automated market makers (AMMs) on public blockchains like Terra and Ethereum, making it easy for issuers as well as investors to buy and sell them.

Expanded Investor Base

Flexible fractional ownership improves access to investment opportunities by allowing investors to partake in transactions that were previously inaccessible to them due to capital or liquidity constraints.

Asset-backed tokens are tokens which are backed one-to-one by the the physical or abstract good that they represent. For instance, an asset-backed gold token representing 1 ounce of gold would need to be backed by 1 ounce of physical gold stored in a vault

The primary advantage of asset-backed tokens is simplicity: the design is easy for anyone to understand, and risk is limited to the custodian – if they are trustworthy then the token should be safe to hold. Synthetic tokens can be more complicated to implement. We see a number of important advantages of synthetic vs asset-backed tokens. First, the accessibility afforded by tokenization is typically wider for synthetic tokens: while anybody with an internet connection can access synthetic tokens on a public blockchain, asset-backed tokens may face restrictions imposed by the custodians backing them.

Second, synthetic tokens tend to be more affordable to hold as they typically charge no holding fee. Custodians for asset-backed tokens will typically charge custody fees which can be high, particularly for physical assets such as gold or oil. Third, synthetic tokens provide complete censorship resistance which asset-backed tokens often cannot due to restrictions faced by custodians. We see a market developing for both asset-backed tokens and synthetic tokens. Assetbacked tokens will certainly increase the transparency and liquidity of assets held by custodians, and we believe will become increasingly common. In the following section we introduce a protocol for synthetic asset tokenization, as we believe it has greater potential to democratize access to financial assets for a global audience.