Why do you hold mAssets and how do you use them?

I’d be curious to learn why and how you folks are using your mAssets, please. Is it just price speculation or do you “use” them somehow?

For example, I hold some traditional stocks like AAPL or TSLA. I am wondering whether there’s potentially a reason to sell them and buy mAAPL and mTSLA instead. One reason I can think of is that I can farm them and earn some extra %% rewards. Any other good reasons?

I hold those stocks long term and I don’t really do anything with them anyway, they just sit there.

Thank you

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I see a few point where mAssets may be more attractive than traditional stocks:

  • Having is exposure to assets that aren’t easily available in your jurisdiction (hence the high adoption of mirror in Thailand/China/Vietnam).
  • Extra yield from long or short farming.
  • The market for mAssets pretty new and therefore much more inefficient. This means that there are many more opportunities for profitable trades if you know where to look, mainly “arbitraging” when mAsset premiums are too low/too high and trading on news when the markets are closed.
  • A last point is using mAssets in the rest of the DeFi ecossystem. For now the only use case is using mAsset as collateral to mint other mAssets, but I am sure there will more usecases as the Terra ecosystem grows.
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Another reason is that you can trade mAssets 24/7.
So you can react to the news on the weekend. And unlike Robinhood, it can’t just disable selling it.

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I was trying to enter a short farm during the night and Mirror didn’t let me, saying it’s outside trading hours – does this limitation apply to farms only?

It applies to any position that requires minting an asset.
Because there are no live prices outside trading hours, there is no reference for how much collateral should be locked against mAssets

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As an European I have some access to USA stocks, but ETFs it’s a different story I have no access to ARK ETFs so Mirror just became an option for me. Another reason is Crypto gains are yet to be taxed where I’m from, as long as they are not my “main” source of income, so I use mAssets for short term plays when available.

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I haven’t done it yet but I plan to use my aUST to borrow/mint an MQQQ. Hold it for a year and sell it at the end of the year.

Haven’t looked into the premiums and how that will affect the gains.

Staking mAssets for a % return is great, but it also reduces volatility because the pool self balances. Of course there is impermanent loss but that’s not a bad trade off in my opinion.

The access is is a great benefit for many, that’s true.

Be careful with the taxation. I have background in taxation. If you’re from Portugal, I am almost certain your gains are taxable.

I’ve looked into taxes recently and as far as I am aware, I won’t need to but I’ll look into it further, thanks for the heads up.