Everything you need to know about staking MIR Tokens on mirror.finance
MIR is the governance token of Mirror Protocol, a synthetic assets protocol built by Terraform Labs (TFL) on the Terra blockchain.
The protocol generates fees via a 1.5% CDP closure fee on the collateral. These fees are being redistributed between all MIR stakers.
Please note: MIR tokens are also distributed as reward for staked LP tokens, which are generated when the user provides liquidity (not covered here).
With this tutorial we are exclusively highlighting the MIR Governance Staking, which captures fees from CDP closures.
By staking MIR the user is receiving these rewards, which are automatically compounded. Furthermore, staked MIR can be used as voting power on governance polls.
With the Mirror Protocol Staking Rewards Calculator you can make assumptions for the Mirror Protocol in order to estimate earnings.
Staking MIR will take place on the mirror.finance governance page.
What is MIR Staking?
The Mirror Token (MIR) serves as Mirror Protocol’s governance token. Only users with a staked MIR position can vote on polls, and each user receives voting power weighted by their amount of staked MIR. For every poll, a user can choose to allocate up to their total staked MIR. Users with higher MIR stake will therefore have more influence when deciding in governance polls.
Users that stake MIR tokens also earn MIR rewards generated from withdrawing collateral from CDP positions within the protocol.
MIR is also used to incentivize users to farm yields by staking LP tokens which were minted by providing liquidity for MIR and mAssets. Yield is paid to the users from MIRs that are newly minted through annual inflation, which gradually increases the total supply of MIR until the end of 4th year.
Staking MIR is relatively easy and requires a Terra Station wallet containing MIR and LUNA or Stablecoins to pay for gas.
Go to the Governance tab at terra.mirror.finance to approve and stake your MIR tokens.
To start make sure you have a Terra Station Wallet with some MIR to Stake and some UST to pay for gas fees.
How to Stake MIR
Start by going to terra.mirror.finance.
On the upper header you can find the “Governance” tab.
Next click on the top right hand field to “Connect Wallet“.
“Allow” your wallet to connect.
Select either Stake / Unstake
Enter “amount” to Stake
Click “STAKE” / UNSTAKE.
Station Extension should prompt you to sign the transaction. Confirm the details presented and input your password to sign.
Congratulations you have successfully staked your MIR Tokens and will start earning Staking Rewards.
Staking MIR is easy with the use of the Terra Station Wallet and the fact that rewards are automatically compounded and you can vote on governance proposals and play an active role in shaping the future of Mirror Protocol brings a unique factor to this process.
Overall this was a pleasant experience staking MIR. There are more things we can do next such as create a poll or vote on a poll. Please explore the rest of the website to see opportunities to interact with LPs and earn even more!