Astoundingly, they call the 12th largest stablecoin Magic Internet Money (MIM). Consequently, speculators will ask, what is Magic Internet Money?

To explain, CoinGecko listed Magic Internet Money as the 12th largest stablecoin by Market Capitalization on 2 August 2022. Magic Internet Money had a Market Capitalization of $2.9 billion on 2 August 2022. In contrast, all stablecoins had a $153.295 billion Market Capitalization and a $76.085 billion trading volume on 2 August 2022, Coin Gecko Estimates.

Magic Internet Money and Magic Internet Gold (MIG) are stablecoins built in the Abracadabra ecosystem. They claim to pair Magic Internet Money to the US dollar and Magic Internet Gold to an ounce of gold.

Pairing or pegging means a stablecoin contains a smart token that releases payment in a currency or commodity when you spend the stablecoin. They hold the money or commodity in an account or system outside the token. For example, Magic Internet Money makes payment in US dollars when you spend MIM.

Magic Internet Money

They claim Magic Internet Money (MIM) is a USD-pegged stablecoin backed by interest bearing tokens.

The MIM is a multichain token which means it can operate across several blockchains. Magic Internet Money currently operates on the Ethereum (ETH), Binance Smart Chain (BNB), Fantom (FTM), Avalanche (AVAX), and Arbitrum.

They mint MIM tokens by a multisign and deposit them in a Kashi Markets smart contract. A Multisign is a method of authorizing a transaction on the XRP Ledger. Multisigns are popular because they can validate and confirm transactions. Theoretically, mulitsigns offer more security. Currently, several DAOs multisign MIM.

Abracadabra offers a two other tokens, SPELL and sSpell. They use the SPELL token to incentivize transactions and sSPELL for staking SPELL tokens, fee-sharing, and governance. They hope the SPELL token can keep liquidity in its markets.

Users can stake and lock SPELL to get sSPELL using a Wizard Dashboard. They will bridge those tokens through the Anyswap Network.

MIM Borrowing

Abracadabra uses Kashi Lending Technology to create isolated lending markets. The isolated lending markets allow users to adjust risk tolerance to different collateral.

Abracadabra users can use many cryptocurrencies and DAOs, including SUSHI for collateral. When users liquidate assets, Abracadabra pays them in MIM.

Kashi operates as a leverage engine. That means it allows Abracadabra users to leverage interest bearing token positions. For examples, users could get leverage to swap Tether (USDT) for MIM.

Interestingly, Abracadabra can deposit tokens into a yearn vault and reward users with yearn tokens. The hope of the leverage is stabilize Abracadabra positions.

Abracadabra users can stake SPELL earn more SPELL. Similarly, users can use mSPELL staking to earn stablecoin income through MIM. mSPELL staking lets users stake SPELL tokens earn MIM income. mSPELL stakers can claim MIM rewards.

What Value Does Magic Internet Money Have?

Mr. Market thinks Magic Internet Money (MIM) offers some value.

For example, CoinGecko estimates Magic Internet Money (MIM) had a $221.421 million Market Capitalization and a $2.961 million 24-Hour Trading Volume. CoinGecko estimates Magic Internet Money was the 166th largest cryptocurrency, with a Coin Price of $1.00 on 2 August 2022. They base numbers on a Circulating Supply of 220.368 million MIM and a Total Supply of 1.816 billion MIM.

In contrast, CoinMarketCap named Magic Internet Money the 2,864th largest cryptocurrency, with a 99.66₵ Coin Price on 2 August 2022. CoinMarketCap gave Magic Internet Money a $1.927 billion Market Capitalization, a $1.927 billion Fully Diluted Market Cap, and a 24 Hour Market Volume of $2.84 million on 2 August 2022. They base those numbers on a Self Reported Circulating Supply of 1.93 billion MIM.

So yes, Magic Internet Money offers some money despite its corny name. However, I advise speculators to avoid MIM because Abracadabra is a defi ecosystem not a stablecoin. In particular, I cannot tell how many dollars are backing the MIM. Moreover, I consider MIM an unstable stablecoin because its Coin Price is often under $1 dollar.

I think there are better stablecoins than Magic Internet Money (MIM) out there. Smart speculators will say no to this brand of magic.