Idea on how to increase MIR demand


It would be great if people will get a discount (e.g. 50%) on closing Minted/Borrowed positions if paying with MIR. Actually it should be pretty easy to implement.

Current price of 1.5% is quite high, which keep arbitragers from reducing the premiums.
If we get a discount when paying by MIR token, most arbitragers will need to keep buying some MIR, which will create enough incentive to keep the MIR price flying.

Looking forward to hearing from you, devs, community…

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100% of the 1.5% fee is used to buy MIR on Terraswap though.

1.5% Mirror protocol fee is charged whenever a withdrawal from a CDP is made (including position closure and liquidation auction). The protocol fee is calculated based on the value of the mAsset at the burning of minted asset. This fee is then sent to the Collector contract, converted into MIR through Terraswap and distributed to MIR token stakers as a staking reward.

So a discount for just paying the fee in MIR isn’t going to do much. But what about a discount for holding MIR? That could be a game changer. Think about how Binance started off. Yes, they gave a discount in trading fees for holding BNB, but the real demand they created was a tiered discount in trading fees for holding larger amounts of BNB. The more BNB held, the lower fees.

Mirror Protocol should do the same thing. The more MIR held, the lower the fees.


At present the fees are paid in the collateral currency, and then automatically swapped into MIR using Terraswap and then injected into the MIR staking rewards contract sequence. So a discount for paying in MIR would mean… buying a smaller amount of MIR a few minutes earlier.

Tell me again how buying less MIR and cutting staking rewards by the discounted amount will increase MIR demand?

I am not understanding a lot of thing about this protocol, but could MIR token be exchangeable for 0.5, 1 or 1.5 LUNA (for example)? So the price would be stable, and put downtrend pressure on LUNA, which is flying because of MIR and UST.

The discount would be proportinal to the holdings of MIR, so the total fees paid in MIR will be bigger, even if % of fees are lower. And this would create demand to buy and hold MIR, to get less fees.

Discount based on holdings was not the original suggestion to which I was responding.

A discount for holding staked MIR could potentially work. More likely (depending on the size of the discount), big short sellers would buy and stake MIR right before closing large positions, rather than holding positions for extended periods of time. That would create more activity in the LP pool, but minimal long-term price impact (possibly slight increase in demand for holding in LP pool to capture more trading fees).