Abracadabra (SPELL) is a lending platform that uses interest-bearing tokens (ibTKN) as collateral to borrow dollar-linked stablecoin (Magic Internet Money-MIM), which can be used like any other traditional stablecoin.

There are many assets locked up in places like yVaults that cannot be used further. Abracadabra provides the opportunity to use these assets.

Due to its clear legal subject and the need to cooperate with traditional finance in asset custody and channel, centralized stablesoin has low supervision difficulty and may be the first project facing impact in DeFi field. On the other hand, when centralized staboins are included in the regulatory framework, it is likely to open a window of opportunity for decentralized staboins, which have been lagging behind it, to gain active adoption by more users and protocols.

Use interest-bearing tokens (ibTKN) as collateral to borrow dollar-linked decentralized staboins.

MIM is similar to DAI in terms of stability mechanism, mainly from excess mortgage and seigniorage rate (similar to the stability fee of DAI). Excess mortgage ensures that THERE is sufficient asset support behind MIM. Seigniorage rate is used to regulate the cost of capital of MIM, so as to affect the balance of money supply and demand of MIM.

The primary function of the SPELL token is to pledge it in Abracadabra to obtain the sSPELL token, which has several benefits. First, they grant holders voting rights to change platform parameters such as TVL, liquidation fees, future collateral options, etc. Second, they grant the holder a claim for expenses incurred under the agreement.

1. Interest-bearing tokens are collateral. 2. Each collateral has a separate liability. 3. MIM is pegged to the DOLLAR. 4. Pledge SPELL return sSPELL token. 5. SSPELL is used for voting and fee sharing.

SPELL is the maximum supply of 210 billion. At present in the etheric fang online, SPELL contracts for: 0 x090185f2135308bad17527004364ebcc2d37e5f6. The SPELL token allocation is as follows: 7% -- IDO 18% -- SushiSwap ETH-SPELL LP Token 45% -- MIM-3LP3CRV LP token 30% -- Team allocation

1. Adopt interest-bearing assets as collateral to cast MIM. 2. The leverage function of "cyclic mortgage lending" is provided, which can be realized in one block by means of flash lending (a series of contract interactions are completed in one block) : mortgage lending MIM -- multiple cycles of realising and remortgaging, essentially realizing the long leverage of the mortgage asset.

The fee for the agreement comes from the interest on borrowing the MIM. Since the debt is paid in the MIM, a fee is charged. Their distribution is as follows: 75% is used to purchase SPELL tokens issued to sSPELL token holders. 20 per cent is allocated to the governance vault to incentivise the MIM liquidity pool. 5% are redirected to the multi-signature library, which will be used when market conditions require intervention.

1. Spell targeted lock-in interest-bearing assets, while Alcx targeted Dai. 2. Different from other stabocoins and DeFi agreements, Abracadabra has a deeper combination with several DeFi agreements in terms of product mechanism and asset portfolio. For example, Abracadabra uses a large amount of Interest bearing assets of Yearn as collateral. It uses Sushi's Kashi lending engine, directly integrates with Anyswap, a cross-chain bridge, and supports the interest-bearing assets of Convex, Curve's market-making and pledge service platform, as collateral.

The inclusion of interest bearing assets, other DeFi protocol tokens and new public chain tokens in the scope of collateral, on the one hand, can bring Abracadabra accurate users of these DeFi projects and new public chain, and support the rapid growth of its business; On the other hand, it also amplifies its risks, especially at the smart contract level. The massive integration of external DeFi protocols not only increases the complexity of DeFi lego portfolio, but also the security risks of these external protocols will penetrate into Abracadabra's system.

"The moat of any stablecoin is an ecological scene, that is, your stablecoin needs to be recognized and used by others. What determines your social APP is not yourself, but your environment, and the social APP that is used by all the identity relationships around you. Spell expanded the ecosystem of N with its strong ability to form alliances, just like AC's aggressive cooperation in the past. In a very short time and with strong execution, THE share of MIM reached 1.5 billion DOLLARS like a storm. Of course, the coin circle is now the main use of mining, the main destination of MIM is also in the Crv pool, the highest rate of return is about 24%, followed by stablecoin mining on Arbitrum (MIM-USDC-USDT), Apy 35%. "

Risk 1 With all loan agreements, there is a risk of liquidation. Liquidation occurs when the value of the collateral falls to a predetermined point. Risk 2 Abracadabra uses smart contracts, so like any other DeFi project, smart contracts are subject to bugs and vulnerabilities.

Abracadabra's core mechanics are similar to MakerDAO's. Abracadabra is more like MakerDAO in multi-chain deployment, collateral selection, and protocol combination, which creates opportunities for its growth, but also implies the risk of higher smart contract combination and external protocol explosion. In addition, despite the large casting volume of MIM, the number of coin holding addresses of MIM is still small and distributed in multiple chains, and a large-scale payment network has not yet been formed.