Disclosure: Delphi Ventures and members of our team hold positions in LUNA. Members of our team also have SNX positions. This statement is intended to disclose any perceived conflict of interest and should not be misconstrued as a recommendation to purchase LUNA, MIR or SNX. This is not investment advice.

TLDR: Mirror Finance is a new synthetic asset protocol built on top of the Terra blockchain, with both sharing the same founder, Do Kwon. While Mirror ($MIR) is attracting much of the attention right now, we’ve pursued a different strategy by investing in Terra ($LUNA). We believe Mirror, while potentially valuable in its own right, is a bootstrapping strategy for Terra, and the LUNA token stands to benefit the most from its growth.

Terra is an application-specific chain built using Cosmos SDK and relies on Tendermint for PoS consensus, similar to THORChain. This enables Terra to be optimized for its specific use case, facilitating cheap transactions with high-throughput, while also having good functionality in terms of interoperability.

What makes Terra unique is that it has multiple fiat-pegged, algorithmic stablecoins incorporated natively into the network’s economic design. $LUNA, Terra’s native token, is used to both stake the network and collateralize the algorithmic stablecoins. The latter point being similar to how FXS collateralizes the price of FRAX. Let’s explain the elastic supply

To read this full report and get access to Delphi's research portal, become a member!

Subscribe Now