adamnusic
commented
3 years ago Main conceptual issue at present
Collateralizing mAssets on Mirror means the minter is opening a short position, they can make a profit when the price of the asset drops i.e. Minter collateralizes mAsset for $200 at 200% collateralization ratio, they get $100 worth mAsset (let's call it 1 mAsset), if the price of the mAsset increases to $150 and they sell it they will have to wait till the price drops below $150 to make a profit on that trade as they still owe 1 mAsset, they can make a profit by buying the mAsset below $150 and then repaying.
The problem with this in our case is we probably don't want to be encouraging nuAsset minters, who may include fans to be making a bet against the artists that the nuAssets represent.
So the question is how do we enable synthetic minting of nuAssets without minters taking a short position?
We've got 2 weeks to knock-out the first Smart contracts to be deployed on Terra's Col-5 testnet:
POC Idea
Enable minters to collateralize up to 10 synthetic music assets with UST or aUST that are priced based on real-world music streaming data from a source like: https://api.chartmetric.com/apidoc/
Minters earn native tokens emitted per block proportionally to their share of the total collateralized assets.
Enable leveraged trades on collateralized synthetic music assets with payoff function visualizer.
References
Mirror White Papers https://mirror.finance/MirrorWP.pdf https://mirror.finance/Mirror_Protocol_v2.pdf
Contract for Difference https://en.wikipedia.org/wiki/Contract_for_difference https://financefeeds.com/cfd-regulation-global-impact-comprehensive-guide
Payoff function visualizer front end ideas https://www.d3-graph-gallery.com/