I was telling my friends/"business partners" about Terra which I blogged here - DeFi - Terra (LUNA) & Anchor Protocol (20% Interest) and they got interested in Mirror Protocol and the delta-neutral strategies it offers despite the risk of liquidation. Before I knew it, I was convinced by them that it is actually relatively safe. lol. I guessed I got traumatized by my previous experience when my leveraged CAKE farm got liquidated in Alpaca Finance (BSC) which I mentioned here.
The main difference for Mirror is that the underlying assets are mostly mirrored stocks called mAssets compared to various crypto coins in Alpaca. It is less likely to be liquidated in Mirror because stocks do not swing as much. Let's take a look at a few examples:
Basically, if I were to open a short position in Mirror at a 200% collateral ratio (liquidation happens at 150%), the underlying stock will have to increase by 33.33% before I get liquidated....
