Overview
Mirror Protocol was a decentralized synthetic asset protocol on Terra, allowing users to create and trade synthetic versions of US stocks (Apple, Tesla, Google), commodities, and ETFs. These "mAssets" tracked real-world prices via Band Protocol and Chainlink oracles.
Mirror Protocol is dead. It collapsed with the Terra/LUNA ecosystem in May 2022 when UST depegged, destroying the entire Terra ecosystem. All mAssets were denominated in UST. When UST became worthless, so did everything on Mirror.
Technology
Mirror used a mint-and-burn model: deposit UST collateral to mint mAssets, trade on Terraswap, provide liquidity for yield. The protocol was functional while Terra operated. The fatal flaw was single-chain dependency with UST as the sole collateral — no cross-chain deployment, no alternative collateral, no failsafe.
Security
Pre-Collapse Issues
Even before Terra's collapse, Mirror had serious problems:
- $89M Exploit (Oct 2021): A vulnerability in Mirror's lock contract was exploited for months before discovery, draining ~$89M — exposing inadequate security review
- SEC Investigation: The SEC served Do Kwon with a subpoena regarding Mirror, alleging synthetic stocks constituted unregistered securities
Post-Collapse
There is no security to assess. The protocol is non-functional. Any remaining contracts on Terra Classic are unsafe.
Decentralization
Governance was through MIR token voting, but practically controlled by Terraform Labs. After the collapse: no governance, no team, no community.
Adoption
At peak (early 2022): ~$2B TVL, dozens of synthetic stock assets, cross-chain deployment via Shuttle bridge. Current: zero. No TVL, no users, no volume, no development.
Tokenomics
- Symbol: MIR
- Status: Effectively worthless, 99%+ loss from peak
- Trading: Residual listings on some exchanges at near-zero prices
MIR tokens should not be purchased under any circumstances. No protocol, no team, no prospect of revival.
Risk Factors
- Protocol is dead: Complete collapse with Terra ecosystem
- SEC enforcement: Subject to securities regulation investigation
- Total loss: All mAsset holders and LPs lost their positions
- $89M exploit: Pre-collapse security failure demonstrated poor practices
- No recovery: No team, no funding, no development
Conclusion
Mirror Protocol is a cautionary tale: single-chain dependency on Terra with UST-only collateral was a fatal architecture flaw. The $89M exploit showed inadequate security. The SEC investigation confirmed regulatory risk in synthetic stocks. Mirror once represented an exciting vision — decentralized access to global stock markets. That vision may be realized by others on more robust infrastructure. Mirror itself is dead. MIR tokens are worthless. This is a warning, not an investment opportunity.