At the launch of Mirror Protocol v2, new types of collateral such as aUST, MIR, LUNA, and ANC were introduced for mint positions to provide a greater variety of collateral assets.
While the addition of aUST to the list of collateral was a success with users interacting with both Anchor Protocol and Mirror Protocol for more optimized yield farming while having relatively low liquidation risks, MIR and ANC collateral types were not able to deliver such utility to the users.
This governance proposal suggests to delist MIR and ANC from Mirror Protocol’s collateral types.
Reason 1. Current demand for MIR and ANC collateral types
General trend of borrowed position holders in Mirror Protocol seem to prefer collateral with low volatility and minimum collateral ratio threshold.
But, MIR and ANC tokens both have a collateral multiplier of 1.333334, which makes the minimum collateral ratio much higher than other collateral types.
The number of positions open with MIR and ANC collateral is extremely low. As of Nov 26th 2021:
- Total number of CDPs open: 18,900
- Positions open with MIR collateral: 22
- Positions open with ANC collateral: 6
Reason 2. Migration of MIR-UST, ANC-UST pools from Terraswap to Astroport DEX
As of today, the poll to redirect MIR-UST rewards to Astroport is highly likely to pass.
- Poll on Mirror: https://mirrorprotocol.app/#/gov/poll/167
- Poll on Anchor: https://app.anchorprotocol.com/poll/7
Changes if the poll passes
If this poll passes by majority
YES vote, the following changes are expected:
- No more borrowed / short positions can be opened with MIR or ANC collateral, and depositing more collateral will also be blocked to these positions.
- Collateral withdrawal or closing of borrowed / short positions MIR / ANC will be allowed.
- Even after the two assets are delisted from collateral list, liquidations can still happen. It is highly recommended that you close any positions using the mentioned two assets as collateral.
The poll for this proposal will go live within this week.