Magic Internet Money

Overview

Magic Internet Money (MIM) is an overcollateralized stablecoin created by Abracadabra.money, designed to maintain a 1:1 peg with the US Dollar. Users can mint MIM by depositing various interest-bearing tokens as collateral in the protocol.

Purpose and Utility

The primary purpose of MIM is to serve as a stablecoin within the DeFi ecosystem, allowing users to borrow against their interest-bearing token collateral. The protocol enables users to maintain exposure to yield-generating assets while accessing liquid stablecoin funds.

Business Model

The core mechanism involves lending and borrowing, where users deposit collateral to mint MIM tokens. The protocol charges interest on borrowing and requires overcollateralization to maintain stability. This inherently involves riba (interest) as a fundamental component of its operation.

Real-World Adoption

MIM has achieved significant adoption within the DeFi ecosystem, with substantial liquidity across multiple blockchain networks including Ethereum, Avalanche, and Fantom. The token is widely used in various DeFi protocols for lending, trading, and yield farming.

Platform Development

Abracadabra.money maintains active development of the protocol, with regular updates and improvements to the platform's functionality. The project has demonstrated consistent technical progress and ecosystem expansion.