Time to take a look at Mirror, a recently launched protocol from Terra that’s making big waves and attracting some serious attention.
What Is Mirror?
Late last year, crypto standout Terra debuted the Mirror Protocol, a new synthetic asset platform designed to help users gain access and price exposure to real-world assets. Mirror allows for the tracking, issuing and trading of these assets, such as U.S. equities like stocks, via Mirrored Assets, also known as mAssets. MAssets are synthetic derivatives of real-world assets and as the name implies, work to mirror their exchange prices on-chain.
Traders outside the United States know how difficult it can be to access the stock market. And, after several controversies regarding retail trading here in the United States, even domestic traders probably don’t need a reminder of why a token such as this may pose some advantages. Mirror seeks to help both of these users by giving them the ability to participate directly in investment or speculation on price even if they don’t own the underlying asset.
So far, the intended audience seems to be receptive, and Mirror is making its presence felt among traders. Liquidity has been growing steadily, reaching a high of just under 624M UST as of 5 PM on Monday, while the traded volume of Mirror reached nearly 54M UST.
Why Does Mirror Matter?
So, what to make of Mirror?
There’s no doubt that this protocol holds major potential. That’s especially true when you consider not only the scores of international traders looking to get some stake in American companies, but also thousands of American retail traders frustrated by their experiences during the GameStop fiasco earlier this year who swore they would be looking for an alternative entry point to the stock market.
Mirror may not offer a perfect solution to that problem — after all, these are synthetic derivatives and don’t provide any ownership of the stocks they represent — but like many other Terra projects, it’s designed to help bridge the gap for those looking for new ways to access traditional finance and trading options. If they’re successful, there’s a reason to believe in a big, beautiful future for Mirror and the entire Terra ecosystem.
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