What magic can Abracadabra use to hunt MakerDao?

Footprint Analytics has already provided comprehensive information on Fixed Income, Comparing and Introducing MakerDAO Protocol to Secure DAI Securities with Liquity for Stable LUSD Financial Statements.In this article, we will take a look at MIM, which is also a commercially stable product, and its process, Abracadabra.

If you're concerned about the DAI headquarters, Daniele Sestagalli, centralized stability parts critic and co-founder of Abracadabra, has even asked MakerDao publicly on Twitter.

If you are concerned about MakerDAO's various assets, Abracadabra's selective assets will be even happier.

Abracadabra, a venture capital firm, has grown steadily, growing from less than $ 300 million in TVL sales in early September of this year to $ 4.4 billion, 16 times more in two months. Ethereum, which is 78% of them, is the mainstay, and Abracadabra continues to run on other utilities, and now supports Arbitrum, Avalanche and Fantom, and BSC have also been sent.

Abracadabra TVL Chain Distribution (June 2021) Data source: Footprint Analytics

Another co-founder, Alias ​​Squirrel, concluded that Abracadabra's TVL was gaining momentum and, in addition to distributing more channels, it was adopting singleTKNS (interest rate tokens) as its as a printed commercial product and simply an attractive payment sharing.

01

Multifunctional collection, unique experience

Abracadabra has slightly different capacities for different chains. For Ethereum with a higher TVL,We are currently integrating agriculture, lending, stake, and tool functionality (such as bridges, trade, and research).

Source de la photo : Abracadabra

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The main activity of Abracadabra is lending. A difference from other lenders is that they promote value added products as a commodity. To keep Abracadabra safe, its perks, Magic Internet Money (MIM), can be borrowed to earn additional perks while retaining the interest on the old property.

Currently, most Abracadabra sponsored tokens remain the most profitable products, and the following tokens are also supported:

-Community governance token of the NFT Loot AGLD project

-Alchemix ALCX control token

- FTT Token is used to support the entire FTX ecosystem

-FTM, symbol of the Fanton chain

-Terachain race stable UST

- Pulley

-Abracadabra owns the SPELL and sSPELL platform tokens

The capacity of the lake mentioned above is between 170,000 and 6 million which is not much compared to the 300 million maximum interest of the property. The market is evolving and expanding the users of this new chain by adding more chain tokens. as a guarantee.

In addition to interest, the cost of a loan includes the single mortgage rate., loan rates are similar to the Liquity model and directly increase the debt the borrower has to pay. Different lakes have different interest rates and loan rates.

There may be a charge.As usual, the fee for oneTKNS backed by fixed capital is 3%, and oneTKNS with exchange rate is 12.5%. However, liquidation is now carried out by robots, so there is no end in sight.

The comparison of raw materials is also determined based on whether the raw materials are stable, and the default is 90% for stable raw materials and 50-90% for other raw materials.

Abracadabra is also very "user friendly" when users borrow money.If you want to add leverage, check it out for yourself., you can increase your energy by adjusting the interest rate and the number of cycles. This quick loan can be made as part of a trade-in, which helps reduce fuel costs.

The leverage feature allows users to convert MIM loans to USDT and deposit that USDT into the annual vault to earn yvUSDT, which is then returned to Abracadabra as promised. So even if the total APY increases through upgrades, users will not receive MIM in their current wallet.

Source de la photo : Abracadabra

To help you understand, here are a few examples:

- This year's Curve stETH pool users.depositActif 1000 USD, APY 3,6%

- Interest received yvcrvSTETH may be extended.ProgrammeMIM borrows from access to Abracadabra's yvcrvSTETH pool

- Abracadabra's interest rates on this lake are 0.5%, and the maximum loan is 75%, allowing the best users.qiv750 MI ib

- Equivalent to a user who can only close $ 250 in assets and receive 3.1% of $ 1000 from APY admin, $ 750 from additional usersExpenses or other investments

-The cost of the whole process isLoan: 0.5%, single loan 0.5%

- If you chooseLeverage nce, after 10 cycles, you can borrow up to 3.8 times the value of MIM, while APY has increased to 13.5%, which is almost 4 times the value of MIM.

It is important to keep in mind that as energy increases, the market value also increases, gradually reducing the unreliable risk that users can avoid. Depending on the market, users no longer have the inheritance and users need to carefully assess their risk risk when using high power.

Agriculture

Users can earn Abracadabra SPELL platform token by pledging LP tokens.Currently, Sushiswap's ETH-SPELL and MIM-ETH currency pairs are backed by Ethereum, and MIM-3LP3CRV's LP token is backed by Curve for the mining industry.

Abracadabra's maximum Curve APY reached 10.9% and the SPELL reward was 5.09%, making it the highest ranking in terms of Curve's trade volume. In order to maintain user confidence in the benefits of a stable MIM, Abracadabra has worked hard to ensure the security of MIM value in the market.

grouper

Users can promise Farm SPELLs,To receive sSPELL and join the Abracadabra cost sharing process. Note: The contract has a 24 hour close period.

property

Abracadabra also has a built-in Bridge (Zoo) chain directly from AnySwap., users' MIM can be directly exchanged between Ethereum, Arbitrum, Avalanche, Fantom and BSC.

Swap can go straight to the curve to switch between MIM and DAI, USDC and USDT.

Recently, Analytics jobs have been added,You can see the loan status and Abracadabra removal information at a glance. You can check the Abracadabra dashboard on the official Footprint Analytics website to understand the main details of your contract.

02

Three token models: MIM, SPELL, sSPELL

Similar to the Liquid model, Abracadabra's stable currency loan is MIM tied to the US dollar, SPELL is a token support platform, and sSPELL is a token earned by staking SPELL for shared fees and services.

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MIM stable results for the majority of arbitrations.Like DAI, interest rates are used to control the value of MIM money, thereby affecting MIM income and demand relationships. At the same time, thanks to the support of APY High and Curve, the unique advantages of Agriculture Sushiswap have been enhanced with improved efficiency, increasing the depth of the MIM pool. Integrate and maximize MIM's security and revenue in the marketplace.

As data from Footprint Analytics show, the current price of MIM is stable, a significant change from $ 0.97 to $ 1.01, and no significant de-anchoring has occurred.

MIM Price Data Source: Footprint Analysis

As a stable commodity reported with an oversupply of commodities, MIM's value proposition has outperformed its predecessor, the LUSD. MIM is still ranked 6th after UST in terms of stable revenue, and it can be seen that consumer demand for this area is very strong when revenue comes from cash.

Stablecoins Market Value Data Source: Footprint Analysis

acts

SPELL is usually obtained by staking Farm LP tokens (Curve Pool must access the Curve interface for this to work).The contract cannot be changed using SPELL and MKR as control tokens. Looking at the distribution of SPELL as an example, you can see that the team spent a lot of money on financial support, 45% will be spent on supporting the MIM-3LP3CRV pool and 18% will be spent on ETH inspired. -SPELL. In the Sushiswap currency pair.

SPELL's price was just US $ 0.18 on November 17, while the price of LQTY, Liquity's token with a similar model, hit US $ 13.73 (LQTY without a check-up fee). . far

SPELL Price Situation Data Source: Footprint Analysis

to spell

The most important way to get sSPELL is to contract SPELL in Stake.In addition to governance, sSPELL can help merchants secure interest rates, loan rates, and repayments on their contracts. One of the secrets to Abracadabra's success, according to the founder of Squirrel, is its ultimate benefits. SPELL Award.

Similar to the SUSHI / sSUSHI relationship, the number of sSPELLs represents its participation in the value pool. When users withdraw their SPELLs, they will receive additional income on the SPELLs card. In the Stake interface, users can see the comparison of sSPELL to SPELL, and the extra added value, the higher the value of 1 sSPELL token.

concludes

Abracadabra absorbed the elements of MakerDAO and Liquity and made further iterations of the oversized stable mortgage business. However, as the devices become more commercially available, they also come with the risks of other regulations and public channels. Giving the ability to speed up not only provides convenience to users, but also encourages users to balance their risk-taking ability with satisfaction with refunds.

Similar to Liquity, same designCentralized or semi-centralized financial matters, one of Abracadabra's founders, Squirrel, launched the 'Occupy DeFi' theme (Twitter #OccupyDeFi) on Twitter, saying it would focus on creating true financial sustainability. We have also created a fast growing DeFi project called Frog Nation with our joint ventures with Popsicle Finance and Wonderland Money.

Liquity has a clear payment mechanism and claims to decentralize even the front-end interface.Abracadabra is best for Liquity when it comes to outdoor deep pools and used cases..However, the decision to have total independence is real, I think DeFi will go even further towards real decentralization through the redevelopment of these new operations.