# overview
[**mirage**](https://mirage.money/) **is building modular money on Move. at its core, mirage is a liquidity layer that leverages synthetic assets to power a wide range of financial products**. the mirage team has built out a high-performance perps DEX ([**mirage market**](/mirage-market)) and allows others to build their own protocols by tapping into mirage's liquidity. liquidity is sourced from the minting of [mUSD](/musd) - an overcollateralized stablecoin that earns yield from protocols that integrate it. initially, mUSD serves as margin on the mirage market, and in the future will expand to other use cases. mirage is built for Move-based ecosystems, starting with Aptos and Movement, delivering a level of speed and security unrivaled in the market today - **enabling best-in-class UX with near-instant execution and minimal fees.** mirage was built by a small team of software developers with deep experience building on and off-chain trading systems at top institutional trading firms. the vision behind mirage is simple: deliver a platform that allows LPs to seamlessly tap into yields generated by a variety of cutting-edge financial products. # mUSD the defi dollar at the core of mirage protocol
[mUSD](https://medium.com/@mirageprotocol/musd-the-yield-bearing-stablecoin-at-the-center-of-mirage-protocol-e9a407f7b931) - the mirage dollar is minted by providing high quality collateral such as USDC, APT, or MOVE, taking on an over-collateralized debt position. mUSD serves as margin on the [mirage market](/mirage-market) perps dex. minters of mUSD act as the counterparty to traders, and as a result earn a significant portion of [protocol fees](/mirage-market/funding-and-fees#fee-split). these fees go toward paying down the mUSD debt required to unlock deposited collateral. in this respect, mUSD functions as a **self-repaying stablecoin loan.** **mirage assets can also be used in a variety of leverage and hedging strategies across the Aptos ecosystem.** for more details, see [yield strategies](/musd/yield-strategies). in the future, mirage plans to implement yield-bearing strategies on deposited collateral to further accelerate the self-repaying mechanism. see [Alchemix for more details](https://alchemixfi.medium.com/introducing-alchemix-9e7054de54d6) on how this is possible. # vaults **users mint mUSD by locking collateral into vaults. each vault has four functions: deposit/withdraw collateral, and borrow/repay mUSD.** vaults are overcollateralized debt positions containing a single form of collateral and the minted asset. collateralization ratios (c-ratios) are parameterized for each collateral type. for example, highly correlated vaults like USDC/mUSD will have a much lower c-ratio than less correlated pairings such as APT/mUSD. if a user falls below the target c-ratio, they risk liquidation. liquidations can be performed by anyone, and the liquidator will receive a fee for processing the liquidation. the mirage team has written open-source software that anyone can run to be a liquidator. of course, you're always free to write your own liquidator as well or modify the existing code. each vault is a [digital asset](https://aptos.dev/standards/digital-asset/) token (NFT). **this means vaults can be transferred between accounts, listed on a secondary marketplace, and are easily composed across other protocols.** the gives users added flexibility for managing their position and allows other participants to take over positions at a fair market value. from a portfolio management perspective, users will be able to see their vaults from within their wallet. {% hint style="danger" %} be careful when transferring vaults. transferring to an unknown address could result in loss of funds. when you transfer a vault, your locked collateral is transferred as well. {% endhint %} # peg it is essential for a stablecoin to maintain its peg. we have implemented a variety of mechanisms to ensure a robust peg. for starters, **mUSD will always be overcollateralized**. this protects the protocol during periods of volatility, ensuring stability and preventing cascading liquidations. while overcollateralization secures the peg on a protocol level, the utility of mirage assets opens them up to significant trading pressure on the open market. lets take a closer look: * buy pressure is created by traders swapping into mUSD, which serves as margin on the mirage market and is needed to place trades. * sell pressure is created when LPs swap their minted mUSD into other tokens. mUSD will be held in [correlated liquidity pools](https://blog.pontem.network/liquidity-pool-mechanics-9ddaf22e7c55). this will significantly reduce price slippage even during periods of one-sided trading and low liquidity. however, it’s still possible that excessive buy or sell pressure causes mUSD to temporarily depeg. let’s go over the arbitrage mechanism that comes into play in both potential cases: **mUSD depegs and rises over $1:** * mUSD can be minted on mirage at a fixed price of $1, then sold on the open market for over $1, creating constant sell pressure until a repeg. **mUSD depegs under $1:** * outstanding loans of mUSD can be paid back for cheaper than they were borrowed, causing buy pressure on mUSD until price stabilizes. this mechanism incentivizes users to engage in arbitrage, generating profits for themselves while securing the peg of mUSD. # yield strategies mUSD doesn't just function within mirage protocol. they can be utilized across the Move ecosystem in a variety of strategies. let's walk through a few simple strategies that can take advantage of mUSD to earn more yield. keep in mind listed APRs are subject to frequent change: **boosted USDC yield with** [**Aries Market**](https://app.ariesmarkets.xyz/)**:** * deposit collateral on mirage (USDC, APT) → mint mUSD → swap mUSD to USDC → deposit USDC on Aries Market and earn extra yield (currently **3.77% APR + 15.40% APT incentive**) * this strategy yields one of the highest stablecoin APRs across all of web3 **liquid-staked Aptos and airdrop strategy on** [**Amnis Finance**](https://amnis.finance/)**:** * deposit collateral → mint mUSD → swap mUSD to APT → deposit APT on Amnis Finance and earn yield on liquid staked APT (**11.12% APR + points for $AMI token airdrop**) * we are working closely with Amnis to accept their liquid-staked APT as collateral. **leveraged stablecoin strategy with** [**Thala Labs**](https://www.thalalabs.xyz/)**:** * an mUSD loan can be swapped into Thala’s ecosystem and deposited into a variety of pools earning between **20–140% APR** depending on the pool and risk appetite * we are working with Thala to accept their MOD stablecoin, THL governance token, and liquid-staked APT as collateral **leveraged perps strategy using** [**Merkle Trade**](https://merkle.trade/)**:** * deposit collateral → mint mUSD → swap mUSD to USDC → deposit USDC on Merkle Trade for their LP token (**50% APR + LP incentives/MKL token**) * this leveraged perps play allows you to collect fees from two different perps DEXs by strategically depositing collateral and ‘looping’ deposits to mint additional mUSD, even more complex leveraged and hedging strategies can be deployed. debt from an mUSD “loan” will passively pay itself down while these strategies are deployed, boosting the listed APRs higher. {% hint style="info" %} increasing leverage increases risk of liquidation. make sure to tailor yield strategies according to your particular risk appetite. {% endhint %} # mirage market
the mirage market is a decentralized perpetual futures exchange allowing **easy-to-use, slippage free trading**. a wide range of assets can be traded: crypto, commodities, currencies, and eventually stocks. the market has all the features a trader expects: **high leverage, market and limit orders, take profit & stop loss, built-in bridge and swap functionality, and frequent listings** to keep up with a fast-paced market. mirage offers the **fastest and cheapest perps experience** by leveraging the Aptos blockchain and implementing a [fair fee structure](/mirage-market/funding-and-fees). users from popular alternatives will see up to a 20x decrease in fees with faster execution and zero slippage. to trade on the mirage market, a user needs mUSD in their wallet. **all trades are settled in mUSD**. [native swapping](broken://pages/Sh85f2tzHOaxi6Pcw1TX) makes it easy for traders to obtain mUSD and trade out of it without having to [mint it](/musd/vaults) themselves. # funding and fees mirage has a robust fee structure to incentivize balanced open interest while minimizing impact on the trading experience. in total, mirage fees are significantly less than other popular DEXs and competitive with what traders will more typically see on centralized perps exchanges. ### trading fees trading fees on the mirage market are variable based on multiple factors. there are two types of fees, **maker fees** and **taker fees,** with the following ranges**:** * maker fees: 0% - 0.05% * taker fees: 0.05% - 0.5% therefore the maximum fee a maker will pay is 0.05%, and the maximum fee a taker will pay is 0.5%. each individual market keeps a record of the total open long positions and short positions. taker and maker fees are based on which direction the market is currently weighted: * if there is more long open interest than short open interest: * longs pay taker fees * shorts pay maker fees * if there is more short open interest than long open interest: * longs pay maker fees * shorts pay taker fees taker fees increase the greater the imbalance of longs and shorts. similarly, maker fees decrease the greater the imbalance of longs and shorts. for a perfectly balanced market (i.e. longs and shorts are equal), makers and takers both pay the same fee: 0.05% ### funding rate the funding rate is the cost of keeping a position open. it acts as a fee on trades that increase open interest skew and a rebate for trades that bring open interest into balance. funding is calculated and paid hourly. for a market with no imbalance, traders pay a base rate to the protocol: * **base funding rate**: 0.005% / hour funding is then adjusted based on the imbalance. * if there is more long open interest than short open interest: * longs pay funding * shorts receive funding * If there is more short open interest than long open interest: * longs receive funding * shorts pay funding funding rate further incentivizes balanced open interest by providing traders with opportunities to arbitrage skewed open interest. for example, if the APT market is skewed long, a user can buy spot APT and then open up an equal sized short on mirage and profit off of the funding rate without being impacted by the underlying price movement of APT. funding rate can also be arbitraged between different perps CEXs/DEXs that differ in skew. for more information on funding rate arbitrage, see this [in-depth guide](https://medium.com/@Xulian0x/mastering-funding-rate-arbitrage-in-crypto-a-comprehensive-guide-27b4c3bb0f90#:~:text=Funding%20Rate%20Arbitrage%20is%20an,executing%20a%20strategy%20on%20Hyperliquid.). {% hint style="info" %} funding can change rapidly as the traders enter and exit the market. a trade may be opened in a negative funding environment and then become positive as more traders take advantage of the funding rebate. it's important to manage open positions and keep track of fluctuations in funding. {% endhint %} ### fee split protocol fees are split between 3 parties: * LPs (mUSD minters) - 60% * veMIRA rewards - 20% * treasury - 20% # liquidations liquidations occur when traders fail to maintain the required margin levels due to market volatility and leverage. [kwenta ](https://docs.kwenta.io/)breaks this down nicely: * margin requirements: when trading futures, traders are required to deposit a certain amount of money, called margin, as collateral to enter into a contract. this margin acts as a safety buffer to ensure that both counterparties can meet their obligations in the event of adverse market movements. the margin consists of two components: the initial margin and the maintenance margin. the initial margin is the amount required to open a futures position, while the maintenance margin is the minimum amount of equity that must be maintained in the account to keep the position open. * market volatility: unexpected price movements or increased market volatility can cause the value of a futures position to decrease rapidly. if the account balance falls below the maintenance margin, the trader will receive a margin call, requiring them to either deposit additional funds or close their positions to meet the margin requirements. Failure to do so may lead to liquidation, wherein the broker forcibly closes the trader's open positions to protect against further losses. * leverage: futures trading involves leverage, which amplifies both profits and losses. While leverage allows traders to control larger positions with a smaller amount of capital, it also increases the risk of liquidation. a highly leveraged position can quickly lead to significant losses if the market moves against the trader, causing their account balance to fall below the maintenance margin level. on mirage, maintenance margin is dependent on the market and leverage used. trading with high leverage in volatile markets will result in higher maintenance requirements. # mira token
mira is a utility token used to control mirage governance and incentivize liquidity. mira will TGE when protocol reaches significant maturity to warrant governance and support a token. mira will benefit from free share via a buyback and burn, and will also function as a source of collateral to mint mUSD. more info on mira will be released as we approach TGE. # roadmap
# resources have questions? want to integrate with mirage liquidity? please reach out. we are a small team of builders - no community managers, no chatbots auto-replying to your messages. happy to answer any questions you have or chat about anything defi. you can find us on discord or via our personal twitter accounts. [website](https://docs.mirage.money/www.mirage.money) [twitter](https://docs.mirage.money/www.x.com/mirage_protocol) [discord](https://discord.com/invite/TT8hpey5Gw) [medium](https://medium.com/@mirageprotocol) [telegram](https://t.me/+KiMJKT1WGkRmYjYx) [whitepaper](https://github.com/mirage-protocol/whitepaper/blob/main/MirageWhitepaper.pdf) team: [julian - founder](https://twitter.com/moon_shiesty) [mason - co-founder](https://twitter.com/mas1money) [paul - engineer ](https://twitter.com/TheRealSaulDope) # contracts below you can find relevant contract addresses. please reach out on discord with any questions [mirage protocol](https://explorer.aptoslabs.com/account/0x24d6dcce95555b8e8eeaed7d739ea1036c0b8d4bbc6a01797505295a56d322cc/modules/packages/MirageProtocol?network=mainnet): 0x24d6dcce95555b8e8eeaed7d739ea1036c0b8d4bbc6a01797505295a56d322cc [mirage core](https://explorer.aptoslabs.com/account/0x8132428e2b56dbdaaa4d31683971615a6cb272ec6ec0216786c0779f76273f0c/modules/packages/MirageCore?network=mainnet): 0x8132428e2b56dbdaaa4d31683971615a6cb272ec6ec0216786c0779f76273f0c [mirage oracle](https://explorer.aptoslabs.com/account/0xa8e03489818e1ef834d9528fe9089b8aa2e66e6a857a2e1f178e71d7620bc8a1/modules/packages/MirageOracle?network=mainnet): 0xa8e03489818e1ef834d9528fe9089b8aa2e66e6a857a2e1f178e71d7620bc8a1 [mirage market](https://explorer.aptoslabs.com/account/0x62bbdff2025b1045c0fc52e1ca372608d8cb9d0af2dde9b7360e041c3a12d7a9/modules/packages/MirageMarket?network=mainnet): 0x62bbdff2025b1045c0fc52e1ca372608d8cb9d0af2dde9b7360e041c3a12d7a9 [mirage scripts](https://explorer.aptoslabs.com/account/0xd7eaa36019acb60d81dca355a568304dd4639940c9adb45545735c8f0c43de03/modules/packages/MirageScripts?network=mainnet): 0xd7eaa36019acb60d81dca355a568304dd4639940c9adb45545735c8f0c43de03 [mUSD](https://explorer.aptoslabs.com/fungible_asset/0xdd84125d1ebac8f1ecb2819801417fc392325e672be111ec03830c34d6ff82dd?network=mainnet): 0xdd84125d1ebac8f1ecb2819801417fc392325e672be111ec03830c34d6ff82dd