The crypto market includes a huge number of various digital assets. This fords beyond both the centralized and decentralized areas. This post is about one such innovation Abracadabra Money. Let’s take a look at it in more detail.
What is Abracadabra Money?
According to its website, Abracadabra Money is a lending platform. The interesting thing about this platform is that it utilizes interest-bearing tokens (ibTKNs). The interest-bearing tokens are those that accumulate interest and constantly go up in price as users hold them. They describe a portion in a lending pool that increases in volume as borrowers repay interest. These tokens include yvWETH, yvUSDC, yvYFI, yvUSDT, xSUSHI,… as security to obtain MIM (Magic Internet Money). This MIM is is a USD-pegged stablecoin and it works just like other stablecoins.
Abracadabra Money: How does it work?
As mentioned earlier, Abracadabra Money gives detached lending exchanges. This enables users to customize their collateral rate more easily as opposed to utilizing conventional lending exchanges. In this, first, all the collaterals are stored on Abracadabra and then a debt allocation along with the interest is allocated to the borrower. Next, the MIM tokens are stored in the borrower’s wallet. Finally, users can use their MIM anywhere they wish.
Abracadabra Money: About SPELL and MIM token
The next important thing to know is about tokens. In fact, Abracadabra has 3 principal tokens. These are :
- SPELL: This is Abracadabra’s money token that works as the governance token.
- MIM (Magic Internet Money). This MIM token is the main element to maintain the Abracadabra Money’s lending model. It is a USD pegged stablecoin.
- sSPELL: This token is received by staking SPELL tokens and utilized for fee-sharing and governance.
The maximum supply of SPELL is 210,000,000,000 SPELL coins. The distribution of the SPELL token is given below:
- 63% tokens for Global Farming Incentives
- 30% tokens for the Team allocation
- 7% tokens for Initial DEX Offering
According to the website, the MIM is a USD pegged stable coin and it is supported by ibTKNs. MIM tokens are issued by the multisig owners on Ethereum and they are included in circulation.
How to Swap MIM for other stablecoins?
To Swap the MIM, visit the website, and then after clicking on SWAP, users will open the curve.fi website that enables users to swap their MIM stable coins for USDT, DAI, or USDC.
As shown in the figure, users should enter the amount of MIM tokens they want to swap, and then choose the stable coin they want to swap into. Next, select the Max Slippage and Gas Price. Lastly, users should click the green “swap” button and confirm their transaction.
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