Abracadabra.Money’s stablecoin has surged past a $1 billion total supply this month as it works to provide competition to MakerDAO. The Magic Internet Money stablecoin can be borrowed using Abacadabra.Money as collateral, using interest-bearing tokens. The platform utilizes the Ethereum, Binance Smart Chain, Fantom, Avalanche and Arbitrum.
In addition to the MIM token, the project offers the SPELL governance token which can be staked on the protocol.
The MIM Stablecoin Features A Working Governance Token Protocol
This project describes itself as a “spell book” that lets users offer collateral via interest-bearing tokens, such as yvUSDC and xSUSHI, and borrow the MIM stablecoin against the collateral.
According to the website, casting the spell again releases the interest-bearing tokens that were magically locked, after which they return to the spell book.
Assuming it ends up ranking seventh on CoinGecko, MIM has a market capitalization of $1.1 billion as well as interest-bearing tokens such as xSUSHI that allow holders to cut the fees from the DEX SushiSwap.
MakerDAO’s Dai stablecoin currently sits in fourth place with a market cap of $6.4 billion, however MIM’s meteoric rise implies it may soon challenge the popular platform.
Dai, however, was initially launched in December 2017 and surpassed a market cap of $1 billion in late 2020. However, it is important to note that there was significantly less activity in the crypto market when Dai was first launched.
When It Comes To Stablecoins, There’s No Contest.
Abracadabra is in the lead… But MakerDAO is in the lead when it comes to locking up more value!
MakerDAO continues to outpace Abracadabra in terms of total value locked (TVL), which is $13.7 billion–$1.7 billion. Abracadabra generates fees from interest paid on the loans, surpassing MakerDAO last week.
‘Squirrel,’ Abracadabra’s pseudonymous co-founder, told The Defiant on Thursday that the project’s success can be attributed to its support for multiple blockchains and shared that due to Abracadabra’s multi-chain feature, they were the only decentralized stablecoin that could be minted on multiple chains.
In addition, Squirrel noted that SPELL’s fee structure has contributed to its rapid adoption, since stakeholder SPELL tokens are redeemed for 75% of the interest payments on the protocols’ loans.
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