Terra & Mirror Protocol with founder Do Kwon

0:00 Welcome
2:41 Latest news
4:19 on Tether
6:25 What is Terra?
8:57 Traction numbers
11:36 The Terra Advantage
14:08 Is Blockchain stuck between early and mainstream adoption?
18:16 Y Combinator and Inspiration
20:35 Product Market Fit
25:31 The Mirror Protocol
26:37 on Coinbase IPO Futures on FTX
31:43 State of Decentralization
34:07 Shout out: Michael Arrington
36:39 Roadmap Announcement
38:56 Pocket Pick–Developer Communities: Sushi Swap
40:21 Thorchain
41:00 Anonymous Founders
44:32 The Big Idea: DeFi Mass Adoption
50:01 Communities are moats

What is Terra? Terra is what you would call an algorithmic stable coin. So what a stable coin is, is different from different types of cryptocurrencies like Bitcoin or Ethereum, where the value of the coin or the price of the coin fluctuates in response to demand, a stable coin retains its value to $1, or to whatever other fiat currency lead might be pegged to, There’s a couple of differences that para has versus other stable coins, such as tether USDC, DAI and some of the components are is the number one it’s algorithmic. So for stable coins like tether, you generally keep $1, or you promise to keep $1 in the bank account for every stable coin that’s issued. So the presumption is that you should be able to redeem this against the dollar, or to mint an additional unit of stable coin against the dollar, by using Fiat reserve operations. Or for makerDAO, for instance, like you keep up, you know, $1.50 worth of Ethereum in a smart contract to guarantee the value of, you know, the standard plan. So Tara is different in the sense that it’s an algorithmic stable coin. So which means that there are no reserves that are backing the stable point. And the way that we like to think about it is that really, the standpoint of stuff is secured by the value of the economic activity that’s happening on it. So that that’s a unique perspective. Number two is, we support a number of different stable coins, you know, the largest one being pegged to the US dollar, currently at around $200 million market cap, the second one pegged to the Korean Won, around 100 million. And then, you know, Euro, SDR, AUD, and so on, and so forth,, so the idea is that the all of these different stable coins can be swapped at each other at a cost of 25 basis points.

What is Mirror Protocol?
A recent protocol that we launched called Mirror. So mirror is a protocol whereby you can make synthetic tokens that track the price of any asset class in the world. So for example, like you can mint a token that follows the price of, let’s say, a bar of gold, or it could be some sort of ETF. But initially, we specifically focused on issuing synthetics for 13 different US equities. And the reason for that is because in most places across the world, outside of Western Europe and North America, it’s actually very difficult, or in some cases, prohibitively expensive to be able to get price exposure to US equities as an asset class. So, you know, today, I think response to the Mirror protocol has been pretty explosive. So throughout December, there was about $110 million in equity locked in various DEXes like uniswap. And, and paraswap in about $90 million locked up to create cdp’s to mint various types of synthetics. So combined, we’re looking at about around $200 million, locked up in TVL, within the space of, let’s say, six weeks. So what’s been really interesting is that, despite those things, we’ve had developers reach out to us, you know, in this, like a long backlog of people that are looking to build new protocols on top of mirror. So for example, some of the things that we’re looking at all organically arising from community is things like building a dynamic ETF on top of mirror. So a dynamic ETF being that you are able to execute rebalancing of the portfolio in accordance with some scripts or hooks. So instead of re weighting the ETF on the basis of market cap on a quarterly basis, as they have in traditional ETFs, you can have situations where you can look into indicators like the RSI, you can even weight ETFs on the basis of social activity like the Twitter followers for each of the companies. Or you can use something more sophisticated like for example pulling, you know, news that’s coming since you have an ETF that’s responding to current events. Yeah, so stuff like that. And then there’s a team that is building margin trading on top of mirrors such such that you can go and explore, on Apple stock. And then this kind of kind of developer interest is comes from the fact that there is an early user base of people that are interacting with and using these primitives, you know, the promise of how you can scale this protocol to cover essentially, every single asset class in the world is is a very promising exciting one.


Author: Miko