What is Magic Internet Money (MIM)?

MIM is a decentralized stablecoin that is overcollateralized and backed by assets that accrue yield. Since collateralization ratios typically increase over time, MIM is a great tool for obtaining “stacked” yield by leveraging up your yield-bearing assets while earning additional income by using USD to work for you in DeFi.

MIM is a currency with asset backing that has a floating peg to the US dollar. In light of the current state of the market, this means that occasionally its value may vary from exactly 1 USD. To keep its peg, MIM uses a combination of external market forces, internal economic incentives, and policy instruments under the control of SPELL token holders. This is known as the DAI over-collateralization model. To ensure the stability of MIM, the many market participants, who are all operating in their own self-interest, cooperate.

MIM is a stablecoin created by the decentralized lending platform Abracadabra. money that is soft-pegged to the US dollar. 

To create MIM, Abracadabra uses interest-bearing tokens as collateral. Liquidity provider (LP) tokens from Convex, Curve, and Yearn are just a few examples of interest-bearing tokens that can be used as collateral. Unlike other stablecoin/lending systems like MakerDAO, Abracadabra’s loan liquidation procedure treats each collateralized debt position (CDP) and its liquidation price separately. If the CDP’s liquidation price is reached, the position may be purchased by the liquidator by clearing the outstanding MIM.

One governmental measure used to control the MIM supply in circulation is borrowing fees. A lower borrowing charge encourages the production of more MIM, whereas a higher borrowing fee has the reverse effect and slows down the production of MIM. By minting MIM when demand surges cause its price to rise beyond 1 USD and, conversely, buying MIM to pay off its debt at a discount when it trades below 1 USD, vault owners play a crucial role in sustaining the peg. And arbitragers support the MIM peg by exploiting price variations among different market participants.

MIM is an ERC-20 token that has a soft USD peg. Through incentives for arbitrage inside the Abracadabra ecosystem, MIM maintains its peg. Arbitrageurs are encouraged to purchase MIM at a discount to maybe pay off some of their debt at a lower cost than if MIM were trading at USD1.00. Arbitrageurs are enticed to borrow MIM and sell it at a premium if MIM trades over USD1.00.


Who are the founders of Magic Internet Money (MIM)?  

In September 2021, Magic Internet Money (MIM) was initially listed. Abracadabra, which was initially introduced in May 2021, produced MIM tokens.

Daniele Sestagalli, who has been active in the blockchain community since 2018, developed Abracadabra.money. In addition, he founded the Wonderland Olympus DAO fork.

Abracadabra developed the collateral-backed stablecoin known as MIM. Its value is tied to the US dollar and maintained at that level via an economic system based on congruent financial incentives. MIM is created when people borrow money using secured property, and it is destroyed when the debt is paid back.


What is Magic Internet Money (MIM) used for?  

Due to its consistent value of roughly 1 USD, MIM is a price-stable asset that is frequently employed as a hedge against volatility. To traverse the extremely unpredictable crypto markets, users need an alternative store of value and medium of exchange. In addition to enabling a wide range of financial activities such as market-making against a stable asset, hedging during times of significant market volatility, and using collateral as collateral for leverage, MIM solves this issue for crypto native consumers.

Also, MIM can be used as a bridge across many ecosystems, adding to the stablecoin’s usefulness. The price of Magic Internet Money is intended to be soft-pegged to the price of the US dollar, so 1 MIM would be equivalent to $1.

However, the method employed to create this peg is a novel one that has generated a lot of debate among those in the crypto world.

To enable the creation of MIM tokens, interest-bearing crypto assets are utilized as collateral; once the user has repaid the loan, with interest, of course, their collateral is returned.

What occurs next is crucial since fees from the loan are used to buy SPELL tokens later on. Holders of SPELL tokens are rewarded with the SPELL token (75 percent of fees are used to purchase SPELL tokens).

The governance treasury receives 20% of the fees, and the multi-sig treasury, which serves as an emergency fund in case market intervention is necessary, receives the remaining 5%.


How is Magic Internet Money (MIM) unique?  

Magic Internet Money provides consumers with a permissionless, decentralized way to access a non-volatile store of value that is backed by its underlying collateral.

And as mentioned above, Abracadabra creates MIM, a stablecoin that can be traded for other coins, using interest-bearing crypto assets as collateral. Abracadabra’s loan liquidations differ from earlier stablecoin/lending protocols because each collateralized debt position (CDP) has a different liquidation price. A liquidator may buy the position by paying off any outstanding MIM when the price of liquidation for a particular CDP is achieved.


How many Magic Internet Money (MIM) coins are in circulation?  

Magic Internet Money has a maximum supply of over 100,000,000 B MIM and a circulating supply of 188,607,679 B MIM.


How is the Magic Internet Money network secured?

Since the security of MIM depends on resources that are not part of the MIM system (yvWETH, yvUSDC, xSUSHI, WBTC, WETH, SHIB, and others), MIM has a better possibility of securely reducing its user base to zero without experiencing a fatal decline.


How do I buy Magic Internet Money (MIM)?

The MIM token can be used for a wide range of purposes, like staking and payments.

Magic Internet Money (MIM) tokens can be easily purchased by following the steps below. 

* Open an account with the crypto trading platform of your choice.

* Transfer the specific amount of your fiat currency to your account.

* Wait for your deposit to be confirmed and buy CNS through your trading account by swapping with BTC, ETH, or USDT pairs.


Which Cryptocurrency Wallet Supports Magic Internet Money (MIM)?

The PTPWallet platform supports many cryptocurrencies, with MIM soon to be included. Because of its vast use case, PTPWallet has grown to become one of the most popular platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. The platform has a simple user interface, is compatible with both Android and iOS devices, and includes a mobile wallet app.

If you’re looking to learn more about PTPWallet and stay updated on our latest news, be sure to follow us on our social media accounts. You can find us on our channels.

Telegram: https://t.me/ptpwalletnews

Twitter: https://twitter.com/PtpWallet

Facebook
Twitter
LinkedIn
WhatsApp
Telegram
Reddit

More to explore

Get on the VIP list!

Get company and PTPWallet updates and news sent straight to your inbox. No spam. Unsubscribe at any time. 


Get on the VIP list!

Get company and PTPWallet updates and news sent straight to your inbox. No spam. Unsubscribe at any time.