What is magic internet money
Crypto for Advanced
MIM, or Magic Internet Money, is the stablecoin for the Abracadabra protocol and is backed by interest-bearing tokens (ibTKNS). ibTKNs are chosen precisely because they gather interest and will continue to rise in price over time depending on market expectations, hence increasing earnings. The volume of these tokens grows as users repay interest on parts borrowed from the lending pool. Some notable instances include yvYFI, yvUSDC, yvUSDT, xSUSHI, and yvWETH. These tokens are then collateralized and injected into the system before being produced as MIM tokens. They can eventually be connected to other cryptocurrency blockchains and exchanged.
Users must deposit or stake assets such as SUSHI or USDT to yield farms such as Sushi or Yearn in order to use standard yield farming. In exchange, customers obtain illiquid ibTKNs such the xSUSHi and yUSDT, which operate as "receipts" to the original exchange and are used to reclaim the initial deposits as well as any interest. For clarity, you put in liquid tokens and receive illiquid ibTKNs. A stablecoin, on the other hand, requires the deposit of a liquid asset, such as USDC or Ethereum, which is collateralized and provides a liquid stable token, such as DAI. In essence, you put in liquid tokens and receive liquid tokens.
Abracadabra takes a different approach by merging the two strategies. Users can deposit illiquid ibTKNs like xSUSHI and yUSDT as collateral and mint a liquid asset. Internet Money Magic (MIM). Abracadabra has created an opportunity to farm stranded money and made illiquid assets liquid by doing so. This Abracadabra invention has given fresh life to interest-bearing tokens that were previously useless and thrown away. Users may now leverage their assets to the next level with no risk, generating new possibilities and models, thanks to Abracadabra.
Abracadabra, as previously indicated, is a lending pool for interest-bearing tokens. As a result, as compared to traditional loan exchanges, it enables its users to efficiently regulate their collateral rates. The collateral is initially deposited on the Abracadabra platform, after which the debt and interest are assigned to the borrower. Following that, MIM tokens are saved in the users' wallets, and the tokens may be used wherever the users choose.
The governance of Abracadabra is done out through a snapshot website where SPELL/ETH and sSPELL Sushiwap liquidity provider token holders can vote on protocol enhancement suggestions provided to the community. In light of this, Abracadabra must establish and sustain a decentralized governance framework.
Abracadabra holds two tokens: Magic Internet Money, the previously mentioned US-dollar pegged multi-chain, and SPELL, the governance token and protocol utility utilized for incentives and fee-sharing in its community. The SPELL token has a total supply of around 210 billion coins. Approximately 63 percent of it is utilized to incentivize a liquidity provider pair or other liquidity mining operations to maintain the project markets' deep liquidity. According to protocol, the SPELL coin has a mandated ten-year halving model in which its pay-outs are halved every year.