Abracadabra.money (SPELL) is a DeFi lending protocol that allows users to collateralize interest-bearing tokens to borrow stablecoin MIM, optimizing capital usage efficiency.
The project stands out with a multifunctional ecosystem including lending, staking, farming, multi-chain bridge along with governance token SPELL, helping to expand DeFi capabilities.
MAIN CONTENT
Abracadabra.money leverages interest-bearing assets as collateral to mint stablecoin MIM.
The ecosystem includes lending cauldron, Degenbox leverage, and multi-chain support for expansion.
TOKEN SPELL is used for governance, staking, and fees, with a transparent allocation model.
What is Abracadabra.money (SPELL)?
Abracadabra.money is a decentralized lending protocol that allows users to collateralize interest-bearing tokens (such as yvWETH, xSUSHI) to mint the stablecoin Magic Internet Money (MIM). According to the 2024 DeFi report, the project effectively expands the flow of locked capital in vaults and creates high liquidity for the DeFi market.
The project integrates multiple functions such as lending, staking, farming and multi-chain support, while governance is coordinated through TOKEN SPELL, thereby increasing flexibility and effective risk management.
Key features of the Abracadabra.money (SPELL) project
Abracadabra.money focuses on optimizing low-yield assets when locked in vaults. The separate lending module model (Isolated Markets) limits risk contagion between asset types, while applying a gamified design philosophy that is close to the community, enhancing interaction through TOKEN SPELL for profit sharing.
Utilize Vault Token to create new cash flow.
Independent lending model minimizes cross-risk impact.
Continuous multi-chain support expanding on Ethereum, Avalanche, Fantom...
Features of Abracadabra.money (SPELL)
Abracadabra applies Kashi lending technology to provide multiple independent lending markets, allowing users to adjust risk according to the type of collateral asset. Key features include:
Borrow: Borrow stablecoin MIM from collateralized interest-bearing tokens.
Farm: Staking LP Token to receive SPELL rewards, maintaining liquidity.
Stake: Stake SPELL to receive sSPELL and share transaction fees.
Swap: Exchange stablecoins via Curve Finance.
Bridge: Transfer multi-chain assets between major blockchains like Ethereum, BNB Chain.
How does the project operate?
The operation model of Abracadabra.money is similar to MakerDAO but extends to yield-generating assets as collateral. Users deposit Vault Tokens (yvUSDT, xSUSHI) into the vault to mint MIM based on a transparent LTV ratio. MIM is used for trading, farming, or swapping, and borrowers must repay MIM plus interest to withdraw collateral; if the value falls below the safety threshold, it will be liquidated.
Abracadabra effectively expands collateralized cryptocurrency with a separate lending module market, helping to mitigate risks and increase profit efficiency for users.
Daniele Sestagalli, Founder of Abracadabra.money, 2024
Currently, the project operates on several major blockchain networks such as Ethereum, Arbitrum, Avalanche, Fantom, BNB Chain, meeting the diverse needs of DeFi users.
Project products
Abracadabra builds a versatile DeFi ecosystem with 3 core products:
Magic Internet Money (MIM) – Stablecoin of Abracadabra
MIM is a USD-pegged stablecoin, minted by collateralizing yield-bearing assets like yvUSDT, xSUSHI, or yvWETH. Users can use MIM for trading on DEXs (Curve, SushiSwap), farming, or swapping with other stablecoins. The mechanism of maintaining price stability and deep liquidity helps MIM become a flexible financial tool in DeFi.
Cauldron Lending Markets
Cauldron is a separate lending market that allows collateralized tokens to earn interest to mint MIM at a specific LTV ratio; for example, yvUSDT can borrow 75%. The isolated markets design helps reduce cross-asset risk and optimizes for each asset group.
Degenbox – DeFi strategy using leverage
Degenbox allows users to perform automatic looping by collateralizing assets, minting MIM, swapping back those assets to increase APY. This is a popular product supporting complex farming strategies on Curve and Convex with double leverage, optimizing profits without the need for continuous manual operations.
Overview of TOKEN SPELL and Tokenomics
TOKEN SPELL is a utility and governance token on Ethereum based on ERC20, with a maximum supply of 210 billion SPELL, of which the circulating supply is currently 162.1 billion.
Reward allocation ratio 63% Team & Advisors (locked schedule) 30% IDO – Token Sale 7%
TOKEN SPELL supports DAO governance, staking to receive sSPELL for sharing transaction fees and payments within the ecosystem.
Roadmap
Project roadmap until 2025 includes:
Expanding multi-chain on Ethereum, Arbitrum, Fantom, Avalanche
Launch of a new cauldron lending supporting multiple collateral assets
Deeper integration with DeFi dApps like Curve, Convex, Sushi, Stargate
Improvement of tokenomics with a new staking model and dynamic fees
Expanding the Degenbox protocol for more effective double leverage
Project team, Investors, and Partners
Development team
The project was founded by a notable anonymous team, including Daniele Sestagalli – the developer of Wonderland, Popsicle Finance, and SushiSwap. Abracadabra operates in a decentralized manner, coordinated through a DAO that makes decisions about products, finance, and governance.
Investors
Abracadabra does not call for traditional funding but develops through IDO and reward farming. In October 2023, the project received $1.21 million in funding from the Arbitrum Foundation to expand the ecosystem on Arbitrum.
Partners
Curve Finance: Main liquidity in MIM-3CRV pool.
Convex Finance: Optimal profit support through Degenbox.
SushiSwap: Liquidity for SPELL-ETH, SPELL-MIM pairs.
Stargate, LayerZero: Cross-chain infrastructure for MIM/SPELL.
Yearn Finance: Notable Vault Token as collateral.
Summary
Abracadabra.money (SPELL) is a pioneering DeFi solution optimizing capital efficiency by allowing borrowing of stablecoins from interest-bearing tokens. With a lending cauldron ecosystem, stablecoin MIM, governance token SPELL and multi-chain Degenbox leverage strategy, the project helps investors be more flexible and efficient in managing DeFi assets. Although there are risks of liquidation and smart contract security, Abracadabra still holds an important position in the DeFi sector.
"Abracadabra.money has contributed to opening the door to DeFi by turning passive assets into more effective and safer earning tools."
Daniele Sestagalli, Founder of Abracadabra.money, 2024
Frequently Asked Questions
Who is Abracadabra.money (SPELL) suitable for? The project is suitable for DeFi users who want to optimize performance from yield-generating tokens, have experience in risk management, and understand financial leverage. How to borrow stablecoin MIM on Abracadabra? Users deposit yield-bearing tokens into the Cauldron vault, mint MIM based on the LTV ratio and repay the debt to withdraw collateral. What role does TOKEN SPELL play in the ecosystem? SPELL is a utility token used for DAO governance, staking for rewards, and paying fees on the Abracadabra platform. How does Degenbox help investors? Degenbox automates looping to increase APY with a leverage strategy without continuous manual operations. Is Abracadabra.money operational on which blockchains? The project is running multi-chain on Ethereum, Arbitrum, Avalanche, Fantom, BNB Chain and plans to expand further.
Source: https://tintucbitcoin.com/abracadabra-money-spell-la-gi/
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