Creating Educational Video for Mirror


My name is Theodore and I run the YT channel “Practical Psychology” with almost 2,000,000 subscribers. Right now, my entire focus has shifted to my “Whiteboard Crypto” channel that has been doubling almost every month, now up to 5,000 subscribers and 60+ high quality videos.

With that introduction out of the way, I’m looking to make our videos better, and that involves in-depth research.

Essentially, I have many questions about Mirror and I plan on creating a video about it, but I need some questions to answers.

The Telegram group didn’t seem to work, so this is the best next place!

I have read the original whitepaper and whitepaperv2, and still have some questions.

  1. Won’t synthetic assets fail in the price appreciates so quickly that there’s no liquidity for investors who want to cash out?

  2. Does Mirror use price oracles, and if so, why is there a margin of error between the real world asset and the mAsset?

  3. I do not understand how long/short farms work. Even reading the docs and whitepapers, it is still not crystal clear to me (and needs to be, to explain in a video).

Would anyone be willing to answer these questions and many others I have along the way? I really want to finish this video by next week, so I’ll keep looking for answers elsewhere as well.

Thanks! Love this protocol! :slight_smile:

  • Theodore
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  1. The mAsset might be a little slow to catch up but people who are short the mAsset will have incentive to buy it to close out their position. I.e. Asset price goes from $100 to $200 quickly. mAsset now need to catch up – if you’re short the mAsset, your incentive is to buy it at any price below $200 since this “saves” you money closing out the short since you’re buying at a discount to the real price. Thus this mechanism should create demand to offset people looking to sell their mAsset.

  2. Yes, right now Band but diversifying in the future and a backup in place for big swings. The “margin of error” is because of supply/demand inbalances. mAssets tend to trade at a premium since there is more demand + easier to go long and earn yield than to short it to balance. But most of the margin of error is over periods when the underlying Asset isn’t trading and thus the margin of error isn’t actually correct since the real asset isn’t trading.

  3. Long farms are just normal liquidity pools like on Uniswap or Sushiswap. All the same logic, nothing special there. Short farms are shorting the asset – you post collateral to mint mAsset which is then instantly sold. To get your collateral back you need to buy the same amount of mAsset that you shorted and send it back to the contract, which will unlock your collateral. The #4 on the shorting page is the money generated from selling the mAsset (when you shorted it). This gets paid to you after 2 weeks (if you don’t close the position by then).

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