Magic Internet Money's market value breaks through $1 billion, competing with MakerDao

Abracadabra Money’s stablecoin, Magic Internet Money (MIM), which aims to compete with MakerDAO, surpassed $1 billion in total supply this month.

Abracadabra is a cross-chain stablecoin lending protocol that runs on Ethereum, Binance Smart Chain (BSC), Fantom, Avalanche, and Arbitrum. In addition to MIM, the project also has a SPELL governance token that can be staked on the protocol.

The project describes itself as a “spell book” where users can provide collateral via interest-bearing tokens such as yvUSDC, xSUSHI, and use their tokens to borrow against the MIM stablecoin.

"To undo the spell, the caster simply puts the cast MIM back in the spellbook. The magically locked interest-bearing tokens are then released," the website reads.

Interest-bearing tokens like xSUSHI offer holders a cut of fees from decentralized exchange (DEX) SushiSwap.

Launched in May of this year, Abracadabra, MIM has soared to No. 7 in the stablecoin rankings, with a market capitalization of $1.14 billion at the time of writing, according to Coingecko.

While MakerDAO's DAI stablecoin currently ranks fourth with a market cap of $6.4 billion, MIM's meteoric rise suggests it could soon bring serious competition to the popular platform.

In contrast, DAI was launched in December 2017, and its market cap topped $1 billion by the end of 2020. However, it is important to note that when DAI was first launched, there was significantly less activity in the crypto market.

Abracadabra takes a fee from the loan interest paid. Last week, it earned $1.27 million in fee revenue, surpassing MakerDAO’s $969,000. In terms of total value locked (TVL), MakerDAO is still ahead of Abracadabra at $13.7 billion and $1.7 billion, respectively.

Abracadabra co-founder “Squirrel” told The Defiant on Oct. 7 that the project’s success is driven by its efforts to implement support for multiple blockchains:

“Through Abracadabra’s multi-chain deployment, we are the first and only decentralized stablecoin that can be minted on various chains.”

Squirrel also highlighted that its fee structure has contributed to its rapid adoption, as SPELL stakers receive 75% of interest payments on protocol loans through rewarded SPELL tokens.

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