Users can deposit Interest-Bearing Assets on abracadabra.money, and use those as collaterals to borrow the stable coin MIM.

Users can currently use a variety of Interest Bearing assets, and can also use the leverage yielding function here!

The protocol fees are given by the interest, borrowing fee, as well as part fo the liquidation fees!

Find out more on abracadabra in detail here: https://docs.abracadabra.money/

What is Magic Internet Money?​

Magic Internet Money (MIM) stands out as a USD-denominated stablecoin that operates within the innovative framework of the Abracadabra platform. Unlike traditional cryptocurrencies, MIM can be borrowed by depositing interest-bearing tokens as collateral into a Cauldron on the Abracadabra platform. This unique mechanism allows users to leverage their existing assets to generate liquidity without selling them.

The Abracadabra platform supports a variety of interest-bearing assets, providing flexibility and multiple options for users. By depositing these assets, users can borrow MIM, which maintains its value pegged to the US dollar, ensuring stability in volatile markets. The platform also offers a leverage yielding function, enabling users to maximize their returns by borrowing against their interest-bearing assets.

Protocol fees on Abracadabra are derived from interest, borrowing fees, and a portion of liquidation fees. This fee structure ensures the sustainability and efficiency of the platform, while also providing incentives for users to participate in the ecosystem. The integration of these fees into the borrowing process helps maintain the stability and liquidity of MIM.

The seamless borrowing process, combined with the ability to leverage interest-bearing assets, makes MIM a versatile tool for users looking to optimize their cryptocurrency holdings. The Abracadabra platform's innovative approach to collateral and borrowing sets MIM apart in the landscape of stablecoins.

What is the technology behind Magic Internet Money?​

Magic Internet Money (MIM) operates on a fascinating technological foundation that intertwines blockchain technology with innovative financial mechanisms. At its core, MIM is a USD-denominated stablecoin minted through the Abracadabra.money lending platform. This platform allows users to deposit interest-bearing assets as collateral to borrow MIM, creating a unique ecosystem where digital assets can be leveraged for liquidity.

The blockchain technology underlying MIM ensures security and transparency. Blockchains are decentralized ledgers that record transactions across multiple computers, making it nearly impossible for any single entity to alter the data without consensus from the network. This decentralized nature is crucial in preventing attacks from bad actors. For instance, if someone attempts to manipulate the blockchain, they would need to control more than half of the network's computing power, a feat that is both technically challenging and economically unfeasible.

Abracadabra.money leverages the Iron Bank protocol, which facilitates the collateralization of various crypto assets to mint MIM stablecoins across multiple chains. This multi-chain capability enhances the flexibility and accessibility of MIM, allowing users to interact with the stablecoin on different blockchain networks. The use of interest-bearing tokens as collateral is a distinctive feature. These tokens generate yield over time, and by using them as collateral, users can unlock liquidity without losing out on potential earnings from their assets.

The protocol incorporates several layers of security and economic incentives to maintain stability and trust. Protocol fees, which include interest, borrowing fees, and a portion of liquidation fees, are integral to its operation. These fees not only incentivize participation but also ensure the system's sustainability by providing a revenue stream for maintaining and improving the platform.

Moreover, the leverage yielding function allows users to amplify their positions, potentially increasing their returns. This function, however, comes with its own set of risks and requires users to manage their positions carefully to avoid liquidation. The liquidation process itself is designed to protect the system from under-collateralized loans, ensuring that the value of the collateral always covers the borrowed amount.

The integration of these various components creates a robust and dynamic environment for MIM. The combination of blockchain security, interest-bearing collateral, and multi-chain operability positions MIM as a versatile tool in the decentralized finance (DeFi) landscape.

What are the real-world applications of Magic Internet Money?​

Magic Internet Money (MIM) is a stablecoin that has several real-world applications, making it a versatile tool in the cryptocurrency ecosystem. One of its primary uses is in the realm of decentralized finance (DeFi). Users can deposit interest-bearing assets on platforms like abracadabra.money and use these assets as collateral to borrow MIM. This allows individuals to unlock liquidity from their holdings without needing to sell them.

Another significant application of MIM is leveraging. By using MIM, users can increase their exposure to certain assets, potentially amplifying their returns. This is particularly useful for traders and investors looking to maximize their gains in a volatile market.

Staking is another area where MIM finds utility. Users can stake their MIM to earn yields, providing a passive income stream. This staking process helps secure the network and provides incentives for users to hold onto their MIM tokens.

Providing liquidity is also a key function of MIM. Users can add their MIM to liquidity pools on various decentralized exchanges, facilitating smoother and more efficient trading. In return, they earn a portion of the trading fees, making it a profitable venture for liquidity providers.

MIM also plays a role in bridging assets across different blockchain networks. This interoperability allows users to move their assets seamlessly between chains, enhancing the flexibility and utility of their holdings.

In addition to these applications, MIM can be used for fast and cheap international payments. Its stable value makes it an attractive option for cross-border transactions, reducing the risk of volatility that is common with other cryptocurrencies.

Lastly, MIM has the potential to be used in governance and voting within decentralized autonomous organizations (DAOs). As the technology evolves, new use cases for MIM are likely to emerge, further expanding its role in the digital economy.

What key events have there been for Magic Internet Money?​

Magic Internet Money (MIM) emerged as a stablecoin designed to facilitate decentralized finance (DeFi) activities. Its journey began with the launch of Abracadabra.money, a platform that allows users to deposit interest-bearing assets and use them as collateral to borrow MIM. This innovative approach to leveraging assets marked a significant milestone in the DeFi space.

The introduction of borrowing and leveraging services on Abracadabra.money further expanded the utility of MIM. Users could now utilize a variety of interest-bearing assets to maximize their yield, leveraging their positions to enhance potential returns. This development attracted a diverse range of DeFi enthusiasts looking to optimize their investment strategies.

Staking strategies were later added to the platform, providing users with additional opportunities to earn rewards. By staking their assets, users could participate in the network's governance and earn a share of the protocol fees, which include interest, borrowing fees, and a portion of liquidation fees. This incentivized participation and contributed to the growth and stability of the ecosystem.

Concerns about the stability and potential manipulation of MIM arose, highlighting the importance of understanding the underlying collateral and associated risks. These concerns prompted discussions within the community and among regulators, emphasizing the need for transparency and robust risk management practices.

Despite these challenges, the platform continued to evolve, introducing new features and improvements to enhance user experience and security. The addition of various interest-bearing assets and leveraging functions provided users with more flexibility and options to manage their investments effectively.

Throughout its development, Magic Internet Money has remained a focal point in the DeFi landscape, continually adapting to the changing needs and expectations of its user base. The platform's commitment to innovation and user-centric design has solidified its position as a key player in the decentralized finance ecosystem.

Who are the founders of Magic Internet Money?​

Magic Internet Money (MIM) is a stablecoin lending platform that allows users to deposit interest-bearing assets and use them as collateral to borrow MIM. The founders of Magic Internet Money are Daniele Sestagalli and an individual known as "Squirrel." Daniele Sestagalli is a prominent figure in the cryptocurrency space, known for his involvement in various DeFi projects. "Squirrel" remains more enigmatic, with limited public information available. The platform, abracadabra.money, enables users to leverage their assets, generating yield while borrowing MIM. The protocol's fees are derived from interest, borrowing fees, and a portion of liquidation fees.