{"id":349964,"date":"2021-10-08T08:38:19","date_gmt":"2021-10-08T05:38:19","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/magic-internet-money-races-past-1b-sets-sights-on-makerdao\/"},"modified":"2021-10-08T08:38:19","modified_gmt":"2021-10-08T05:38:19","slug":"magic-internet-money-races-past-1b-sets-sights-on-makerdao","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/magic-internet-money-races-past-1b-sets-sights-on-makerdao\/","title":{"rendered":"# Magic Internet Money races past $1B, sets sights on MakerDao"},"content":{"rendered":"

“# Magic Internet Money races past $1B, sets sights on MakerDao <\/strong>”
\n<\/p>\n

Abracadabra Money\u2019s stablecoin Magic Internet Money (MIM) has surged past a $1 billion total supply this month as the project works to provide competition to MakerDAO. <\/p>\n

Abracadabra is a cross-chain stablecoin lending protocol that operates on Ethereum, Binance Smart Chain (BSC), Fantom, Avalanche, and Arbitrum. Along with MIM, the project also has a SPELL governance token which can be staked on the protocol. <\/p>\n

The project describes<\/a> itself as a \u201cspell book\u201d that enables users to provide collateral via interest-bearing bearing tokens such as yvUSDC, xSUSHI and to borrow the MIM stablecoin against their tokens. <\/p>\n

\u201cTo reverse the spell, the caster simply returns the conjured MIMs to the spell book. Then the magically locked interest-bearing tokens are released,\u201d the website reads. <\/p>\n

Interest-bearing tokens such as xSUSHI provide the hodler with a cut of the fees from the decentralized exchange (DEX) SushiSwap.<\/p>\n

Abracadabra launched in May, and according to Coingecko, MIM has surged<\/a> to seventh on the stablecoin rankings with a market cap of $1.14 billion at the time of writing. <\/p>\n

While MakerDAO\u2019s DAI stablecoin currently sits at fourth with a market cap of $6.4 billion, MIM\u2019s meteoric rise suggests that it could provide strong competition to the popular platform soon. <\/p>\n

By contrast, DAI was launched back in December 2017 and surpassed a market cap of $1 billion in late 2020. A caveat to that however, is that there was significantly less activity in the crypto market when DAI was initially launched. <\/p>\n

Abracadabra takes fees from the interest paid on the loans. It surpassed<\/a> MakerDAO last week in terms of fees, generating $1.27 million versus $969,000 respectively. MakerDAO still looms over Abracadabra in terms of total value locked (TVL), with $13.7 billion to $1.7 billion. <\/p>\n

Related: <\/em><\/strong>MakerDAO founder’s plans to address climate change and pivot back to ETH<\/em><\/strong><\/p>\n

The pseudonymous co-founder of Abracadabra, who goes by the name \u201cSquirrel\u201d told<\/a> The Defiant on Oct. 7 that the project’s success has been driven by its efforts to enable support for multiple blockchains: <\/p>\n

\u201cBy being multi-chain with Abracadabra, we are the first and only decentralized stablecoin that can be minted on various chains.\u201d<\/p><\/blockquote>\n

Squirrel also highlighted that its fee structure has contributed to its rapid adoption, as SPELL stakers receive 75% of the interest payments on the protocols\u2019 loans via SPELL tokens that are rewarded to the stakers.<\/p>\n