Abracadabra Cash’s stablecoin Magic Web Cash (MIM) has surged previous a $1 billion complete provide this month because the mission works to offer competitors to MakerDAO.
Abracadabra is a cross-chain stablecoin lending protocol that operates on Ethereum, Binance Sensible Chain (BSC), Fantom, Avalanche, and Arbitrum. Together with MIM, the mission additionally has a SPELL governance token which might be staked on the protocol.
The mission describes itself as a “spell e-book” that allows customers to offer collateral through interest-bearing bearing tokens comparable to yvUSDC, xSUSHI and to borrow the MIM stablecoin in opposition to their tokens.
“To reverse the spell, the caster merely returns the conjured MIMs to the spell e-book. Then the magically locked interest-bearing tokens are launched,” the web site reads.
Curiosity-bearing tokens comparable to xSUSHI present the hodler with a minimize of the charges from the decentralized trade (DEX) SushiSwap.
Abracadabra launched in Could, and based on Coingecko, MIM has surged to seventh on the stablecoin rankings with a market cap of $1.14 billion on the time of writing.
Whereas MakerDAO’s DAI stablecoin presently sits at fourth with a market cap of $6.4 billion, MIM’s meteoric rise means that it might present robust competitors to the favored platform quickly.
In contrast, DAI was launched again in December 2017 and surpassed a market cap of $1 billion in late 2020. A caveat to that nevertheless, 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 when it comes to charges, producing $1.27 million versus $969,000 respectively. MakerDAO nonetheless looms over Abracadabra when it comes to 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” informed The Defiant on Oct. 7 that the mission’s success has been pushed by its efforts to allow help for a number of blockchains:
“By being multi-chain with Abracadabra, we’re the primary and solely decentralized stablecoin that may be minted on numerous chains.”
Squirrel additionally highlighted that its charge construction has contributed to its fast adoption, as SPELL stakers obtain 75% of the curiosity funds on the protocols’ loans through SPELL tokens which might be rewarded to the stakers.