Magic Internet Money

Magic Internet Money (MIM) is a USD soft-pegged stable coin minted by abracadabra.money. A soft exchange rate peg is a type of exchange rate regime. It refers to currencies that keep a stable value against an anchor currency or a combination of currencies.

Abracadabra users can provide collateral in the form of interest-bearing crypto assets, such as xSUSHI, aUST, or yvWETH. In turn, they may borrow MIM, which is an ERC-20 token. MIM may be swapped and used like any other stable coin. Abracadabra is a multichain protocol available on Ethereum, Avalanche, Binance, Fantom, and Arbitum. Abracadabra utilizes Kashi Lending Technology. This allows its users to adjust their risk tolerance as per chosen collateral.

The mechanics used to make MIM remain pegged to the USD, rely on arbitrage. Users that hold debt in MIM may buy MIM if its market value falls under 1 USD, which will cause MIM to increase its price. Similarly, when the price of MIM goes above 1 USD, users may opt to sell their borrowed MIM, in turn lowering its value. Market-to-Market arbitrage uses bots. With the help of computer-assisted trading, the price pegs are quickly corrected whenever a price of MIM fluctuates.

The Abracadabra platform allows its users to not only borrow MIMs, but also to farm and stake other tokens. By doing so, users are awarded SPELL and sSPELL tokens. These tokens are primarily used as governance tokens for the Abracadabra ecosystem.

The Abracadabra market is available on multiple networks, such as the Ethereum Mainnet, Avalanche, or Binance Smart Chain. MIM tokens may be bridged onto the Abracadabra interface using Multichain (Anyswap Network).

Governance of abracadabra.money takes place through their Snapshot page. Abracadabra community members use it to create and vote on proposals. After a proposal passes Abracadabra's team takes it under consideration and implements it.