I’d like to propose a new asset: mSilver
The asset I propose is mAg, or mSilver. It would track the spot price of 1 troy ounce of pure silver, as quoted by some commodities exchange. For example, NYMEX:SI.
*(Spot price means the price of silver on an exchange; it does not include other costs associated with physical silver (vaulting, delivery, designs, manufacturing/minting, rarity/numismatic value, etc.). Whereas buying a physical silver coin or bar as a store will often have some ‘premium’, which is the extra cost on top of the ‘spot’ value.)
In efforts to expand Mirror beyond stocks–and some crypto–I believe opening exposure to commodities could attract a lot of value to Mirror and Terra.
Many serious investors and traders world-wide trade commodies, notably precious metals. Many hold gold or silver as part of their portfolio as a hedge. And there’s also the ‘stackers’ who might apprecite this form of silver, because it’s not being ‘held’ by a regulated exchange.
Since there already exists plenty of Gold-backed tokens (Australia mint, paxos gold, etc.), I believe Silver would be nice to have here.
Note: there is already mSLV. If you aren’t aware, this is not the same thing. SLV is iShares Silver Trust, which tries to generally reflect te performance of silver, but it has its own expenses and liabilites (mAsset holders shouldn’t have to pay these costs), in custody of a company (centralized), and it doesn’t have the same price a spot silver.
One downside of this, though, is that they are both Silver-related, so it could end up just spreading the holdings of those who are bullish on Silver (and already holding mSLV), as opposed to attracting new people. I, personally, wouldn’t hold mSLV, but I would hold mSilver.
Another potential down-side to adding another mAsset is the LP-farm dilution for other mAssets. I think mirroring commodities should take priority over mirroring other crypto, since almost anyone who has access to Terra will also already have access to other coins on their native network. For example, mATOM (which passed) is not that valuable, in my opinion, since IBC is coming soon anyway.
Please, I’d appreciate some feedback from the community on:
-whether Commodities would be valuable to mirror
-whether Silver is a good choice
-how to name the asset (mAg vs mSilver vs ?other?. ‘Ag’ is it’s elemental symbol, but ‘Silver’ is more immediately recognizable)
-whether NYMEX is a good exchange to track the price of silver on. There are other exchanges for silver and arbitrage opportinuties exist between those exchanges, so I don’t want to significantly disadvantage users from certain parts of the world.
-to confirm that 1 troy ounce of >999 pure silver is the appropriate unit to use
-any other pros or cons that haven’t been mentioned
-would you vote yes/no or not vote at all?
If this receives good feedback, then I’d like for this to be proposed. I don’t care if I have to create the official proposal or if anyone else wants to I can just vote Yes on it.