Magic Internet Money races previous $1B, units sights on MakerDao
Abracadabra Money’s stablecoin Magic Internet Money (MIM) has surged previous a $1 billion complete provide this month because the challenge works to offer competitors to MakerDAO.
Abracadabra is a cross-chain stablecoin lending protocol that operates on Ethereum, Binance Smart Chain (BSC), Fantom, Avalanche, and Arbitrum. Along with MIM, the challenge additionally has a SPELL governance token which might be staked on the protocol.
The challenge describes itself as a “spell book” that permits customers to offer collateral by way of interest-bearing bearing tokens akin to yvUSDC, xSUSHI and to borrow the MIM stablecoin in opposition to their tokens.
“To reverse the spell, the caster simply returns the conjured MIMs to the spell book. Then the magically locked interest-bearing tokens are released,” the web site reads.
Interest-bearing tokens akin to xSUSHI present the hodler with a reduce of the charges from the decentralized exchange (DEX) SushiSwap.
Abracadabra launched in May, and in keeping with Coingecko, MIM has surged to seventh on the stablecoin rankings with a market cap of $1.14 billion on the time of writing.
While MakerDAO’s DAI stablecoin presently sits at fourth with a market cap of $6.4 billion, MIM’s meteoric rise means that it may present robust competitors to the favored platform quickly.
By distinction, DAI was launched again in December 2017 and surpassed a market cap of $1 billion in late 2020. A caveat to that nonetheless, is that there was considerably much less exercise within the crypto market when DAI was initially launched.
Abracadabra takes charges from the curiosity paid on the loans. It surpassed MakerDAO final week by way of charges, producing $1.27 million versus $969,000 respectively. MakerDAO nonetheless looms over Abracadabra by way of complete worth locked (TVL), with $13.7 billion to $1.7 billion.
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The pseudonymous co-founder of Abracadabra, who goes by the identify “Squirrel” told The Defiant on Oct. 7 that the challenge’s success has been pushed by its efforts to allow help for a number of blockchains:
“By being multi-chain with Abracadabra, we are the first and only decentralized stablecoin that can be minted on various chains.”
Squirrel additionally highlighted that its payment construction has contributed to its speedy adoption, as SPELL stakers obtain 75% of the curiosity funds on the protocols’ loans by way of SPELL tokens which are rewarded to the stakers.