Magic Internet Money (MIM) is a stablecoin that has gained significant traction in the decentralized finance (DeFi) space due to its innovative features and cross-chain compatibility

Abracadabra.money: The Platform Behind MIM

MIM is the native stablecoin of Abracadabra.money, a DeFi lending platform that focuses on cross-chain compatibility.

Abracadabra.money allows users to collateralize their crypto assets, including interest-bearing tokens (ibTKNs) like Yearn.finance's yTokens or SushiSwap's xSUSHI, to mint MIM.

How MIM Works

Minting MIM involves depositing crypto assets into the Abracadabra.money protocol as collateral. In return, users receive MIM tokens, which are fully collateralized stablecoins pegged to the US dollar.

This process enables users to earn yield on their collateralized ibTKNs while simultaneously borrowing against them to obtain MIM.

Cross-Chain Compatibility

One of the key advantages of MIM is its cross-chain compatibility. The MIM token can be seamlessly integrated into platforms and products built on various blockchains, including Ethereum, Binance Smart Chain, and Arbitrum. This interoperability allows users to utilize MIM across a wide range of DeFi applications.

SPELL Token Governance

Abracadabra.money is governed by its SPELL token, which grants holders voting rights on platform directives and development. SPELL token rewards are distributed on a fixed ten-year schedule, with emissions halving annually.

Minting Fees and Risks

Using Abracadabra.money and MIM involves certain costs and potential risks. There is a 0.5% interest rate charged for borrowing MIM tokens and a 0.5% borrow fee for minting additional MIM. Additionally, a 4% liquidation fee is triggered if the collateral price drops below the liquidation price, resulting in the automatic sale of the collateral.


Magic Internet Money (MIM) is a versatile and innovative stablecoin that has gained popularity due to its cross-chain compatibility and integration with the Abracadabra.money DeFi platform.

By collateralizing their crypto assets, users can mint MIM and access a range of DeFi opportunities, including yield farming and leveraged trading. However, it is crucial for users to be aware of the associated fees and risks before utilizing MIM and the Abracadabra.money platform.

References:

Orca Crypto Exchange: A Solana DEX and AMM | Gemini. (n.d.). Retrieved from https://www.gemini.com/cryptopedia/orca-crypto-exchange-solana-dex-orca-token

elegant_solution. (n.d.). Retrieved January 13, 2024, from https://www.freepik.com/author/user28432665

Freepik - Goodstudiominsk. (n.d.). Retrieved January 5, 2024, from https://www.freepik.com/author/goodstudiominsk

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