Mirror V2 Mainnet Launch

Mirror Protocol
Mirror Protocol
Published in
5 min readJun 25, 2021


Mirror V1: Key Milestones

In six short months since the launch of Mirror V1 in December 2020, Mirror Protocol has proven to be one of the most versatile protocols, with mAssets serving as the building blocks of a number of other protocols, such as Set Protocol, Injective Protocol, and Nebula.

During that period, Mirror crossed 2 billion in TVL and 1 billion in liquidity secured by Band Protocol oracles, making Mirror a top 15 DeFi protocol and leading cross-chain protocol. Significantly, Mirror withstood recent market volatility relatively unscathed, an indicator that its design will enable it to continue scaling across a wide range of market conditions, while also exhibiting the battle-tested facets of Band Oracles which operated without incident.

Mirror has consistently expanded, adding 10 new assets via governance vote in addition to the original 14. Initially launching with a bridge to Ethereum, Mirror has added a bridge to BSC to expand the porting of assets across major chains. Additionally, Mirror’s feature set has grown richer with the addition of limit orders.

Mirror Protocol has expanded its reach horizontally via listing on a number of prominent exchanges and partnering with protocols on both Ethereum and BSC. $MIR has also listed on nearly all major exchanges: Binance, Coinbase, Huobi, KuCoin, Gemini, Crypto.com, and OKEx.

Strategically, Mirror has partnered with PancakeSwap, UniLend, Mask Network, Band Protocol, Beefy, Wing, Pickle, MathWallet, Set Protocol, ApeBoard, Kash, Ramp DeFi, and Nerve Finance, amongst others, to widen the usage of mAssets.

Mirror V2: Testnet Release & Feedback

The Mirror V2 Testnet was launched in conjunction with the V2 governance proposal to enable users to make an informed decision prior to voting and provide feedback on the newest iteration of Mirror Protocol.

Thanks to community feedback on Discord, the team has enabled flexible CDP position management, where users can deposit/withdraw collateral from a position and mint/burn borrowed or shorted amounts without having to close an existing position and open a new one.

The proposal to roll out Mirror V2 has passed with a near-unanimous vote in the affirmative.

Source: https://terra.mirror.finance/gov/poll/103

Mirror V2: What’s New?

Mirror V2 Dashboard — https://terra.mirror.finance

Mirror V2 is the culmination of the community’s active engagement across Mirror’s research and community channels and the Mirror team’s consideration of diverse perspectives as we continue to stretch the boundaries of possibilities on Mirror. Most notably, the web application has a new look, paired with a new and more feature-rich dashboard.

The most interesting changes, however, are the following features — initially introduced in the forum.

  • Pre-IPO Assets: Mirror now unlocks a decentralized method of minting, trading, and LP’ing mAssets before they are officially exchange-listed. See the step-by-step process here.
  • Incentives for Governance Participation: to reward governance participation, 50% of MIR rewards will be distributed to voters on active polls, while the remainder will be distributed to all stakers. Users who want to vote but do not have enough information to vote “Yes” or “No” can also vote to “Abstain”.
  • Governance Poll Quorum: to alleviate the problem of proposals unexpectedly failing to pass after reaching quorum (10% → 9.99%) due to additional MIR being staked to governance, a snapshot will be taken of the total amount of staked MIR during the poll timeframe. This snapshot will be used to calculate quorum fulfillment.
  • New Collateral Options: MIR, LUNA, ANC, bLUNA (to be added soon), and aUST are now collateral options to mint new mAssets. Volatile collateral options will have an additional collateral premium whereby they will be multiplied by 133%, such that a borrow ratio of 150% → 200%.
  • ‘Mint/Short’ LP Token: to remedy the mAsset premium, Mirror V2 introduces “short minting” to lower premiums and reconfigure dynamics between buying -> LP and mint -> LP via the generation of short LP (sLP) tokens.

Parameter Setting Changes

V2 introduces a number of new and updated parameter settings changes. See the full list which compares V1 and V2 parameter settings side by side here.

New Parameters on Mirror V2

Collateral Ratio Multiplier (LUNA, MIR, ANC): 133% — when volatile assets are deposited as collateral, the parameter multiples the minimum collateral ratio (MCR) by 133%. For example, a collateral ratio of 150% for LUNA deposited as collateral is automatically increased to a 200% collateralization ratio.

Collateral Ratio Multiplier (aUST): 100% — aUST as collateral is treated the same way as UST.

UST Lock-up period: UST received through immediate shorting by will be subject to a 15 day lockup period. If an opened position is closed, the UST is unlocked immediately and given back to the user.

Snapshot Period: 1 day

Voter Weight: 50% of Mirror Protocol fees will go to stakers who have voted in on-going polls

Premium Update Interval: 1 hour for the price premium information to be updated


Voting Period: 100,000 blocks → 604,800 seconds (1 week)

Effective Delay: 13,000 blocks → 86,400 seconds (1 day)

Unchanged from V1

Protocol Fee Rate: 1.5%

Proposal Deposit: 100 MIR

Quorum: 10%

Mirror V2 Resources

Join the Mirror Community

We’re thrilled to roll out a new version of Mirror Protocol that retains the best of V1 and incorporates features that make Mirror Protocol far more interesting, expanding its use cases. We look forward to seeing the community engage with the new features on V2 as we continually brainstorm improvements for the next iteration of Mirror Protocol!