Name of Project
Bringing Abracadabra Money into Harmony
Harmony is proposing to bringing Abracadabra Money’s Magic Internet Money (MIM) to deploy MIM stablecoin on the Harmony blockchain, opening a path to DeFi 2.0 for the ONE token. This will expand stablecoin swap capabilities to Harmony’s community of users and provide incentives to bootstrap the launch of Abracadabra’s MIM.
A governance vote on Abracadabra will be required. If the governance vote is in favor of moving forward, the team will then work integrating the ability to launch the MIM token on Harmony, and supporting the bridge built by AnySwap. This will open up the channel to bring in liquidity from all Abracadabra’s supported EVM-compatible chains, which currently has a combined liquidity of $4B+, into Harmony.
When launched, ONE token holders can have another opportunity to borrow against their ONE tokens in return for a highly tradeable MIM stablecoin, while earning leveraged yields and holding on to their ONE tokens. Another opportunity is that Harmony DEX’es can have the exposure to the MIM token and create token pairs such as JEWEL-MIM, VIPER-MIM, ONE-MIM, etc. as additional yield opportunities. This further strengthens the Harmony ecosystem by inherently making the ONE token a more important cross-chain component in DeFi.
Provide $2 million in ONEs over a 6 month period by allocating up to $1 million in ONE tokens for the first 3 months upon launch, and the rest of the funds 3 months after. Harmony invites the Abracadabra community to support this launch and proposes the Abracadabra community to contribute a matching values in SPELL tokens to boost incentives the launch.
Harmony will provide incentives in ONE tokens to bootstrap initial usage of Abracadabra on Harmony. In addition to token incentives, Harmony will be investing heavily in co-marketing and educating users through tutorials, videos, and community-led support.
About Abracadabra Money
Abracadabra.money is a spell book that allow users to produce Magic Internet Money (or MIM). You, the Spellcaster, can provide collateral in the form of various interest bearing crypto assets such as yvYFI, yvUSDT, yvUSDC, xSUSHI and more. With this, you can borrow magic internet money (MIM) which is a stable coin that you can swap for any other traditional stable coin.
By Chase Devens
One of the fastest growing projects of the last month, Abracadabra.money, serves as a great example of a project using the model enhancer strategy by creating CDPs from yield-bearing assets. The CDP model was originally introduced by MakerDAO as a way to create a permissionless credit system. Users mint the protocol’s native stablecoin Dai using a variety of overcollateralized vaults. The common knock on Maker is that its CDPs are capital inefficient since its assets remain locked in vaults and do not earn any interest. To improve the efficiency of the CDP model, Abracadabra uses existing yield-bearing assets as the collateral to mint its native stablecoin MIM. Not only does this put a user’s idle assets to work, it provides the borrower with a deeper liquidation backstop. Since collateral in Abracadabra is continually accruing interest and increasing in nominal value, the probability for liquidation decreases as a function of time, but never to zero. Although model enhancers like Abracadabra do not introduce any novel primitives to DeFi, this category of projects has found product-market fit through increased capital efficiency.
Metrics for success
$100M TVL within 6 months