Can MIR be used as collateral to mint?

just wondering why MIR is not able to be used to mint assets?

Probably, it is largely due to the fact that MIR is much more volatile than UST. The underlying assets are prone to liquidation if the price of MIR drops significantly. In other protocols such as SNX, as a result, its collaterlization ratio remains on the high side of 750%.

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I was curious about this, too. Even if increase collateral ratio, if we can use the Mir as collateral, the value of the Mir will increase.

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500% now. But I agree: it is high

I think we should open a proposal for this.
I am thinking we should introduce profit sharing MIR, aka psMIR, where we deposit MIR into the governance contract and get that in return.

psMIR would be similar to Alpha’s ibETH where it is interest bearing, BUT psMIR would be used for voting in governance. psMIR would be used to deposit as collateral for minting new assets.

This way, staked MIR in psMIR would not only be increasing in value, but also useable to mint more mAssets.

This will produce a huge utility for $MIR community as minters would be able to mint more assets over time and $MIR hodlers voting in governance would benefit and slow the selling pressure.

As $MIR matures over time, I believe price fluctuation will slow down. As such, I propose collateral rate of 600% min.

Would appreciate more thoughts on this.


Secondly, I think for from the 0.3% trading fee from trading the LP pair, 0.2% should be distributed to the minters till liquidity mining ends.
This will solve the scarcity of minters and will introduce a whole influx of mAssets that will restore back the peg value with the oracle price.

Once LM ends, we will have enough mAssets for trading and will remove this incentive and give the LP 0.3% as per designed.

I like this idea. I’ve been thinking as well how to increase the utility of Mir beyond voting. This makes a lot sense, but I don’t have a deep understanding of the underlying financial mechanisms such as needed collateral rate and stuff. I guess the fact that the price of Mir fluctuates makes it more complicated as collateral, and hence you’re suggested increase in collateral rate?

And re second proposal increasing the returns for putting Mir to work is a good idea, probably if current APRs for LPing would be halved they’re still quite attractive and competitive

Not a bad idea, although might not be the top priority. IMHO expanding the number of stocks and partner ships for mAsset to be used as a collateral in say AAVE / VENUS would be more interresting,

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I had the same idea recently, but after giving it some thought it seems likely to create a negative feedback loop in case MIR prices decline substantially. Consider the following scenario:

  • MIR is used as collateral for a significant portion of mAssets.
  • MIR price/crypto market is in decline => people expect MIR price to continue dropping in the future.

Under this scenario, when there is a sudden significant drop in MIR price, many minted assets will be liquidated owing to their collateral ratio dropping. This will free up the collateral, much of which is MIR. Since people expect MIR to fall in price in the above scenario, many will sell the collateral MIR for UST, further reducing the MIR price. This in turn decreases the value of mAsset collateral and leads to more liquidations, and so the negative cycle continues. In the end this could result in a complete collapse of the MIR price.

No, I suggested collateral for $MIR. $UST should stay the same cause it is pegged to the dollar

Yes, but proposal takes weeks to pass as well as developing it.

I think we can do it simultaneously.

the TFL team already has a lot on their plate, I don’t think this is the right time yet.