What Is Mirrored iShares Gold Trust (mIAU)?

What Is Mirrored iShares Gold Trust (mIAU)? Complete Guide Review About Mirrored iShares Gold Trust.

What Is Mirrored iShares Gold Trust (mIAU)?

Mirrored iShares Gold Trust is a DeFi protocol powered by smart contracts on the Terra network that enables the creation of synthetic assets called Mirrored Assets (mAssets). mAssets mimic the price behavior of real-world assets and give traders anywhere in the world open access to price exposure without the burdens of owning or transacting real assets.The minting of mAssets is decentralized and is undertaken by users throughout the network by opening a position and depositing collateral.

Mirrored iShares Gold Trust ensures that there is always sufficient collateral within the protocol to cover mAssets, and also manages markets for mAssets by listing them on Terra swap against UST. The Mirror Token (MIR) is minted by the protocol and distributed as a reward to reinforce behavior that secures the ecosystem. With it, Mirror ensures liquid mAsset markets by rewarding MIR to users who stake LP Tokens obtained through providing liquidity.

Mirrored iShares Gold Trust Also to incentivize users to ensure mAssets to mimic the price behavior of real-world assets, users who stake sLP Tokens obtained through shorting mAssets are rewarded with MIR. MIR is valuable as it is can be staked to receive voting privileges and to earn a share of the protocol’s CDP withdrawal fees.Mirror is a project developed and steered by its community: its markets are maintained by its own users through MIR incentives, and the protocol evolves with new ideas through democratic governance.

Mirrored iShares Gold Trust Storage Key Points

Coin BasicInformation
Coin NameMirrored iShares Gold Trust
Short NamemIAU
Circulating Supply1,123,877.69 mIAU
Total Supply1,123,878
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Official Project WebsiteClick Here To Visit Project Website

What’s new for Mirror v2?

Mirrored iShares Gold Trust Coming into Mirror Protocol v2, there are new feature additions which supplement existing mechanisms from v1 so that all classes of users are sufficiently incentivized for their given contributions within the protocol. Assets scheduled to undergo an IPO can be whitelisted and traded on Mirror v2. Any user can specify the details of the underlying asset via governance poll creation.

Mirrored iShares Gold Trust If the poll passes, these assets will be minted (during a fixed time window) or traded like any other mAssets before the IPO. Once the IPO happens in the underlying market, Mirror Oracle will begin reporting prices from the market, and the asset will have the same features as any other mAsset.

Governance participation incentives

Governance plays a crucial role in the decision-making and success of the Mirror Protocol, but users were not sufficiently incentivized to actively participate. As a result, the quorums were often not reached as users were disincentivized by the fact that their staked MIR tokens were locked until the end of the poll. This was further exacerbated by the fact that MIR deposits were mandatory to create new polls, so poll creators had a relatively high chance to lose their MIR due to lack of poll participation.

Mirrored iShares Gold Trust In Mirror Protocol v2, active voters will be eligible for additional voting rewards in addition to existing governance staking rewards. An vote option is also added for users who want to participate actively in governance but feel that they do not adequately understand the proposal. In addition, a snapshot of the quorum will be saved once it reaches a snapshot to ensure that additional MIR staked in the governance contract does not affect the minimum amount of MIR needed to reach quorum.

Short Incentives

Mirrored iShares Gold Trust One of the largest issues in Mirror Protocol v1 was the persisting price premium between the Terraswap and Oracle price. To reduce price premiums, a user would have to mint an asset and then sell it against Terra swap pools. However, there was no incentive for a user to short an asset since rewards from providing liquidity with bought assets were higher. In addition, minting an asset was much less capital efficient than simply buying the mAsset from Terra swap, even with the price premiums.

Mirrored iShares Gold Trust Mirror v2 presents a new non-tradable token called sLP tokens, which is minted from creating a short position. sLP tokens are also stakable, and generates a reward that is dynamically increasing or decreasing based on the current price premium between Terraswap and Oracle price.