The community should vote yes current whitelisting proposal for Euros for several reasons:
- Expands the mAsset types – right now we only have stocks & crypto. Adding Euros expands mAssets into currencies which is the largest market in the world and can be more difficult for retail traders to access (i.e. lots of demand).
- Provides Hedging – most blockchains (and all mAssets) are USD denominated. Adding Euros allows all EU investors to hedge currency risk. This will pull in demand from all across Terra (and other blockchains once integration is easier). This demand will vary as the crypto market moves, meaning people will actively buy & sell (i.e. significantly higher fee generation than current mAssets).
- Already available on Band – unlike other proposals that are forced to hope Band adds the ticker, Euros are immediately available to be registered and thus trading can begin quickly.
- Mirror Needs to Keep Growing – as someone who’s invested & participated in a wide variety of crypto projects, one of the biggest success keys is growth. Once growth stops, people change platforms. Mirror is still in its infancy and people want to see that it’s an actively expanding platform. New asset classes will show that.
Common reasons against listing:
- “It’s dilutive to the other pools!” – True but shortsighted. Mirror as a platform is pretty worthless if we just have a handful of stocks. Thus Mirror needs to expand if it will survive so this isn’t a valid reason against growth.
- “It’s too similar to current mAssets” – Not the case here. This would be a brand new asset class.
- “People will just use it to farm rewards!” – Those people will always do that, in any pool. Euros will be a net positive to the platform since it can act as a hedging tool and thus has real incentive to be actively traded (unlike stocks which many people are happy to just buy & hold).
TL;DR: Euros will drive accretive value to Mirror due to it’s trading incentive (active hedging management), unique value (no other Euro-assets on Terra), and proof Mirror is serious about expanding (TVL growth). It’s already on Band so let’s get it launched!