How-to fix Mirror's broken assets "manually"


It’s me again. For those interested in bringing the value of mBTC, mDOT, mETH and mGLXY closer to their oracle value, I’ve got a weird suggestion that may work.

We can reduce the circulating supply of all those over-printed tokens by mixing them in liquidity pools.

I did this early on with them and noticed the price slowly krept back up. I was using spectrum’s vaults to do this. Although Mirror’s “longs” function would do the same thing.

I don’t advise putting all your tokens in these, as they will get reduced overtime, but that’s why this would work if more than one person did this.

However, if we all agreed, or even a just a lot of us committed 10-20% of our mAssets to these pools, we’d essentially be burning things back to level like LUNC DAO. Minus the theatre of course.

Who’s in? Comment below so I know others are in, too, and tell us what you’re pooling and where so we can motivate each other :slight_smile:

1 Like

I can be with you? But how burn? We stake at mirror longs and get rewards with mir. How burn?

For example - 24hr reward from staking in mGlxy is around 1400 mir, its around 7000 Ustc
Now it’s 145k mdot .
So everyday we will burn huge quantity of massets, and in one day we will able to peg it to normal price

I think you might have the right idea. Basically Astro and Spectrum were giving significant extra rewards in an attempt the bring everything back to peg. LUNC/bLUNC LUNC/UST pairs when the crash happened were insanely high. Alas it wasn’t enough without LUNC burn.

Now, if we applied that method of liquidity pool usage for mAssets at spectrum and mirror vaults/farms, it may actually work. Small chance, but there is definitely now a chance.

Yes we have very little, but hope. We need only burn all massets, by trade , by rewards maybe big holders will burn some. Let’s doing something.

This does not burn any tokens or reduce supply in anyway. Spectrum pools take MIR rewards and sell them to compound your LP position (thus pushing up pool asset prices while pushing down MIR prices).

But the broken tokens (mBTC, mDOT, mGLXY, mETH) still represent defaulted loans and have no intrinsic value!! Instead, any gain from this approach is “greater fool” theory. You’re hoping that you can get out at the top before the token returns to worthless.

1 Like

Yes, we believe that we can make massets great again. It’s only question in people mind. If everyone but mbtc f

Disheartening dickhead! You got a better plan cockhead. Its asseipes like you that should just give up and burn ya tokens. Ya good for nothing

1 Like

Man, you are talking without knowing anything about the protocol or even about crypto. There is no way to fix any assets. If you want so bad to fix this, try creating a poll to change the Oracle feeder but you won’t meet the quorum because no one left here to vote. Or you can go and create a new protocol using the source code. Do whatever you want but don’t talk like that to people actually know how things work. This protocol is %90 dead now.

Why we can’t implement burn mechanism? And keep price going till real usd value , after this - all oracle will work with us

Look, burning will do nothing for the mAssets because what makes the Mirrored assets Mirrored asset is its mirrored value with the real asset. Actually, this assets are not holding any value and they are representing a debt. So you have to lock a collateral to mint an asset. If the value of the asset drops below your collateral ratio, your debt will be liquidated and you will loose your collateral. For the mechanism to work, we need a oracle price feeder but as Band Protocol killed the oracle price feeder, nothing works. You can’t mint new assets, you can’t close your positions, you can’t free your collateral, you can’t get liquidated etc. Let’s say we put lots of money and rise the price of all mAssets to their real life value. Then what? How can we keep it synced with real world assets? Even before the Luna crash, protocol was failing to keep prices near oracle price. Without a working protocol it’s impossible and pumping the idea to people’s minds will cause people to loose more money.
Bro I understand you lost your money, we all did but you need to move on.
BTW as it’s almost impossible to meet the quorum for a governance poll now, you can’t implement a burn mechanism or fix the oracle feeder or delist mAssets to free collateral

Thank you for big answer :pray:t2:
I think if we can burn massets and pump to usd value - new oracle can come and feed price. Am I wrong ?
One more time - thank you for conversation

Burning an asset doesn’t increase its price single handedly, you also need to create a demand for that asset either by manuplating the market or offering a utility. You don’t just need to pump the price but keep the price at that level to than convince people to trust on that mAssets again. Let’s say you increased the price to the oracle and also convinced Band Protocol to continue feeding the price, there is a real big problem with the protocol, ‘USTC’. The protocol is designed around the ‘stable’ coin ‘USTC’. So the contracts think that USTC is stable and determines the minting price in USTC base. That makes the oracle price unreliable because a pump or dump on USTC price directly effects your balance. So you need to update the contracts to make Mirror great again. And now, only the main dev team can do that. Are they going to do that? Probably no. If you belive in yourself go create a new protocol based on Mirror and collect capital for your project. That will be the easiest way to save Mirror.

On a technical basis you’d still face a problem:

Let’s say there’s only 3 mBTC with the price @$20,000. Thus each mBTC should trade at $20k. Each of these are backed by at least $26k of collateral (that’s how Mirror’s mAssets work – minimum 130% collateral).

But now I create 3 mBTC wrongly. I mint them but only back them with $1 of collateral each and dump them onto the market – mBTC’s price will drop both because I’m dumping and because now there’s mBTC not backed by sufficient collateral.

Because each mBTC is treated individually when redeeming, the fact that the first 3 are over collateralized doesn’t offset the fact the second 3 are undercollateralized. Thus the “fair value” of an mBTC is ~$10k ($20,000 * 3 + $1 * 3)/6 (i.e. the weighted probability of getting a “good one” when redeeming).

Now let’s say someone burns 3 mBTC to try to fix the price, while this would pump the price a bit due to removing them from the LP, the value of mBTC wouldn’t change as there’s still a 50/50 change you redeem it for $20k vs $1.

Applying this to the situation we have at hand – it’s like 100 legitimate mBTC vs 10,000,000 undercollateralized ones. Unfortunately it’s impossible to fix the underlying problem of undercollateralization as each 1 mAsset is treated individually.

1 Like

But we can reduce supply with burning till we will have 3 true btc ( as your example)
Other way - if now all comunity start to buy mbtc and pump it to 20k ustc ( like usd price) oracle will have able to pay every btc, yes? so there is good way to implement burning for broken massets like mbtc mglxy mdot meth - and slowly pump price to usd value.
Thanks for response! sorry for my bad English

No, my whole point was that even if you reduce the supply to 3 mBTC then it still won’t be repegged due to the non-true BTC collateral existing. Right now it’s not 50/50, it’s 100,000 to 1 so it’s even more impossible than my example.

Any plan to repeg the assets would be throwing far more good money after bad than it could plausibly benefit

1 Like