Abracadabra.Money’s (MIM) Explosive Growth Sends SPELL to New Highs, Over 8.7 Bln Tokens to be Burned
Much like the MIM’s 38x growth in TVL in the last three months, the SPELL token is also up more than 100x.
Lending protocol Abracadabra money has surpassed $4 billion in total value locked (TVL).
Just two months back, there was only $270 million worth of assets locked on the platform that allows users to produce magic internet money (MIM), a stablecoin that can be swapped for any other traditional stablecoin.
Over the month of October, Abracadabra grew 23% of the original decentralized finance (DeFi) project MakerDao (MKR), which currently has $17.53 bln in TVL.
MIM, the stablecoin, has surpassed $2.36 billion in market cap and is now inching closer to TerraUSD’s (UST) $2.8 bln.
The lending protocol that allows users to borrow a stablecoin (MIM) with interest-bearing assets relies on arbitrage to maintain its peg. And despite a 3x in its monetary supply over just one month, MIM has been able to relatively maintain its peg ever since its launch.
The native token of the protocol, SPELL, thanks to the protocol’s growth, is constantly hitting new all-time highs since the last two months. Today, the $2.27 billion market cap coin rallied to $0.3125 and is up 10,222.2% since early August.
SPELL holders get to stake their tokens to receive 75% of protocol fees. Currently, there are over 7K SPELL holders versus 10K SPELL holders, with this ratio increasing, meaning a higher proportion of SPELL holders are now staking.
This growth has been driven by the higher weekly protocol fees, which recently totaled $1.7 million.
On Monday, a total of 8,711,260,380 SPELL tokens will also be burned, announced the team on Twitter.
The new weekly benchmark, the number of SPELL tokens to be allocated to farms every week, will now be moved from the current 1.45 bln SPELL per week to 1.16 bln SPELL.
Earlier last month, the team proposed implementing a 20% reduction across all farms, starting from November 1st.
“Given the depth of the protocol reserve, we do not feel the need to use these tokens for any particular marketing effort, team reward, or other actions,” said the team. As such, the emissions that were intended to be used are now burned.
As such, for this week, the protocol will release only 624,188,139 SPELL tokens across all pools.
Additionally, last week, the proposal to deploy Cauldrons and Degenbox on Binance Smart Chain (BSC) was also passed with 99.88% votes.
With BSC currently seeing 1.6 mln daily active addresses, $20 bln of TVL being on-chain, and Binance announcing a $1 billion fund to increase BSC adoption, the multi-chain project Abracadabra.money sees this as a “no brainer” opportunity to deploy on BSC.
“With Abracadabra moving to BSC, we could capture more TVL, new assets, and completely new users,” it said.