Wednesday, April 6, 2022

Mirror: Nolo me Tangere

We've talked before about when @mirror_protocol yields and @anchor_protocol earn are close.

But what happens when you're overcollateralized (by a lot), but the Mirror yields are way below Anchor earn.




I call this: 'Nolo me tangere'

It ('it' being @anchor_protocol EARN) is called 'nolo me tangere' because nothing can touch it for now. If you're getting ~19.5% return on $UST? Go for it, I say.

So, when your yields are less than Anchor EARN, adjust the collateral. It's automatically returned to Anchor EARN.



But! Caveat! @anchor_protocol EARN isn't going to stay 19+% forever, and @mirror_protocol has already made its adjustment to yields to be sustainable for 2-3 years.

So, when yields return above @anchor_protocol, move that collateral back into @mirror_protocol for δNeutral gains.

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