{"id":"magic-internet-money","title":"Magic Internet Money","content":"**Magic Internet Money (MIM)** is a decentralized, collateral-backed [stablecoin](https://iq.wiki/wiki/stablecoin) soft-pegged to the U.S. Dollar. It operates as the core product of the [Abracadabra.money](https://iq.wiki/wiki/abracadabramoney) [decentralized finance (DeFi)](https://iq.wiki/wiki/defi) lending platform. MIM is designed to allow users to unlock liquidity from their interest-bearing crypto assets without needing to sell them, and it is distinguished by its native multi-chain functionality. [\\[1\\]](#cite-id-3uSrBe7UWHbMuTot)\n\n## History\n\nThe [Abracadabra.money](https://iq.wiki/wiki/abracadabramoney) platform and its stablecoin, MIM, were co-founded by [Daniele Sestagalli](https://iq.wiki/wiki/daniele-sesta), a prominent figure in the DeFi space, and an individual known as \"Squirrel.\" [\\[1\\]](#cite-id-3uSrBe7UWHbMuTot) During its operation, the protocol has faced public concerns regarding the stability and potential manipulation of MIM, which led to community discussions about its underlying collateral and associated risks. [\\[1\\]](#cite-id-3uSrBe7UWHbMuTot)​\n\n## Overview\n\n​[Magic](https://iq.wiki/wiki/magic) Internet Money is generated through a Collateralized Debt Position (CDP) model when users borrow against their crypto holdings on the [Abracadabra.money](https://iq.wiki/wiki/abracadabramoney) platform. A key innovation of the protocol is its acceptance of interest-bearing tokens (ibTKNs) as collateral, which are deposited into lending vaults known as \"Cauldrons.\" This mechanism allows a user's deposited capital to continue generating yield while it is simultaneously being used to secure a MIM loan. The process is intended to enhance capital efficiency for users engaging in advanced DeFi strategies like \"leverage yielding,\" where users can automate the process of repeatedly borrowing MIM against their collateral to increase the size of their position and maximize yield. [\\[4\\]](#cite-id-qkXKpbdzZsIhOvLH) [\\[1\\]](#cite-id-3uSrBe7UWHbMuTot)​\n\nThe MIM stablecoin is not confined to a single [blockchain](https://iq.wiki/wiki/blockchain). Through a technology called \"Beaming,\" which utilizes the [LayerZero](https://iq.wiki/wiki/layerzero) protocol, MIM can be transferred natively across multiple [blockchain](https://iq.wiki/wiki/blockchain) networks, including [Ethereum](https://iq.wiki/wiki/ethereum), [Arbitrum](https://iq.wiki/wiki/arbitrum), [Avalanche](https://iq.wiki/wiki/avalanche), and [Fantom](https://iq.wiki/wiki/fantom), creating a more fluid and interoperable asset. [\\[4\\]](#cite-id-qkXKpbdzZsIhOvLH) [\\[3\\]](#cite-id-P9oilKVipZPWWRcv) [\\[1\\]](#cite-id-3uSrBe7UWHbMuTot)​\n\n## Ecosystem and Governance\n\nThe Abracadabra ecosystem is composed of its [stablecoin](https://iq.wiki/wiki/stablecoin) (MIM), a governance token (SPELL), and a decentralized autonomous organization (DAO) that oversees the protocol. As of late 2025, the protocol reported over $145 million in total value locked (TVL). [\\[4\\]](#cite-id-qkXKpbdzZsIhOvLH) Protocol revenue is generated from interest on borrowed MIM, one-time borrowing fees, and liquidation fees. [\\[1\\]](#cite-id-3uSrBe7UWHbMuTot)​\n\n### Associated Tokens\n\n* **Magic Internet Money (MIM):** The core product of the platform, a USD-pegged stablecoin used for borrowing, liquidity, and payments across multiple blockchains. Self-reported data from its [CoinMarketCap](https://iq.wiki/wiki/coinmarketcap) profile indicated a circulating supply of approximately 103.82 million MIM, a total supply of 698.96 million MIM, and over 417,600 holders, though these figures are subject to change. [\\[1\\]](#cite-id-3uSrBe7UWHbMuTot)\n* **Spell Token (SPELL):** The utility and governance token of the Abracadabra.money platform. SPELL token holders can participate in governance decisions and stake their tokens to receive a portion of the protocol's fee revenue. The project's team has actively managed its supply, executing a burn of 5.25 billion SPELL on January 3, 2022, to reduce the total supply to 196 billion. [\\[2\\]](#cite-id-Xq2CVKNT5eKMFVXV) [\\[4\\]](#cite-id-qkXKpbdzZsIhOvLH)\n\n## Use Cases\n\n* **Unlocking Liquidity:** The primary use case is allowing holders of yield-generating assets to gain access to liquid capital (in the form of MIM) without having to sell their underlying positions.\n* **Leveraged Trading and Farming:** Users employ MIM to increase their exposure to certain crypto assets and amplify their returns from yield farming strategies.\n* **Staking:** Users can stake MIM in certain ecosystem pools to earn yield. The protocol's governance token, SPELL, can also be staked to receive a share of platform fees. [\\[4\\]](#cite-id-qkXKpbdzZsIhOvLH) [\\[1\\]](#cite-id-3uSrBe7UWHbMuTot)\n* **Liquidity Provision:** MIM is a common asset in [liquidity pools](https://iq.wiki/wiki/liquidity-pool) on various [decentralized exchanges (DEXs)](https://iq.wiki/wiki/decentralized-exchange), where liquidity providers can earn trading fees from swaps involving the [stablecoin](https://iq.wiki/wiki/stablecoin).\n* **Payments:** As a stablecoin, MIM can be utilized for on-chain or cross-border payments with lower volatility risk compared to other [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency) and with greater efficiency than traditional financial systems.\n* **Interoperability:** The \"Beaming\" feature positions MIM as a tool for transferring value seamlessly across different [blockchain](https://iq.wiki/wiki/blockchain) ecosystems, enhancing capital flow and market integration. [\\[1\\]](#cite-id-3uSrBe7UWHbMuTot)\n\n## Future Developments\n\nThe integration of MIM as an [Omnichain Fungible Token](https://iq.wiki/wiki/oft-omnichain-fungible-token) is presented by the project as a foundational step toward more advanced cross-chain [DeFi](https://iq.wiki/wiki/defi) functionalities. The underlying [LayerZero](https://iq.wiki/wiki/layerzero) technology is intended to unlock future capabilities that could further enhance capital efficiency across the entire [blockchain](https://iq.wiki/wiki/blockchain) ecosystem. Stated goals for future development include:\n\n* **Cross-Chain Borrowing:** Enabling users to open a borrowing position on one [blockchain](https://iq.wiki/wiki/blockchain) (e.g., borrowing MIM on [Arbitrum](https://iq.wiki/wiki/arbitrum)) by using collateral held on a completely different [blockchain](https://iq.wiki/wiki/blockchain) (e.g., a yield-bearing asset on [Ethereum](https://iq.wiki/wiki/ethereum)).\n* **Cross-Chain Liquidations:** Developing a mechanism to seamlessly execute liquidations of debt positions across different networks, which would create a more unified and resilient risk management system for the protocol.[\\[3\\]](#cite-id-P9oilKVipZPWWRcv) [\\[2\\]](#cite-id-Xq2CVKNT5eKMFVXV)","summary":"Magic Internet Money (MIM) is a collateral-backed stablecoin soft-pegged to the USD from the Abracadabra.money platform. It allows users to unlock liquidity fro...","images":[{"id":"QmUFzidS7f4tcbRaYJJKYWwcmfvGDpJLi6F85TwT8knPxU","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[{"id":"Ethereum"},{"id":"Protocols"},{"id":"Stablecoins"},{"id":"Blockchains"}],"media":[],"metadata":[{"id":"website","value":"https://abracadabra.money/"},{"id":"twitter_profile","value":"https://x.com/MIM_Spell"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/magic-internet-money/"},{"id":"contract_url","value":"https://etherscan.io/token/0x99d8a9c45b2eca8864373a26d1459e3dff1e17f3"},{"id":"twitter_profile","value":"https://twitter.com/MIM_Spell"},{"id":"discord_profile","value":"https://discord.com/invite/mim"},{"id":"medium_profile","value":"https://abracadabramoney.medium.com/"},{"id":"contract_url","value":"https://solscan.io/token/HRQke5DKdDo3jV7wnomyiM8AA3EzkVnxMDdo2FQ5XUe1"},{"id":"contract_url","value":"https://app.nansen.ai/token-god-mode?chain=ethereum&tab=transactions&tokenAddress=0x99d8a9c45b2eca8864373a26d1459e3dff1e17f3"},{"id":"contract_url","value":"https://etherscan.io/address/0x99D8a9C45b2ecA8864373A26D1459e3Dff1e17F3"},{"id":"contract_url","value":"https://bscscan.com/address/0xfe19f0b51438fd612f6fd59c1dbb3ea319f433ba"},{"id":"contract_url","value":"https://ftmscan.com/token/0x82f0b8b456c1a451378467398982d4834b6829c1"},{"id":"etherscan","value":"https://etherscan.io/address/0x99D8a9C45b2ecA8864373A26D1459e3Dff1e17F3"},{"id":"bscscan","value":"https://bscscan.com/address/0xfe19f0b51438fd612f6fd59c1dbb3ea319f433ba"},{"id":"references","value":"[{\"id\":\"3uSrBe7UWHbMuTot\",\"url\":\"https://coinmarketcap.com/currencies/magic-internet-money/\",\"description\":\"CoinMarketCap analysis of Magic Internet Money\",\"timestamp\":1763180174924},{\"id\":\"Xq2CVKNT5eKMFVXV\",\"url\":\"https://x.com/MIM\\\\_Spell\",\"description\":\"Official X account and ecosystem affiliations for MIM\",\"timestamp\":1763180174924},{\"id\":\"P9oilKVipZPWWRcv\",\"description\":\"Omnichain MIM Docs\",\"timestamp\":1763180570621,\"url\":\"https://docs.abracadabra.money/learn/tokens/omnichain-mim\"},{\"id\":\"qkXKpbdzZsIhOvLH\",\"url\":\"https://abracadabra.money/\",\"description\":\"Abracadabra.money official website\",\"timestamp\":1763241712749}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmUpNTszMWiGdCuMmrRpsC7hpFWhhoheYq2yahQzmay33k\""},{"id":"commit-message","value":"\"Fixed corrupted text in summary\""},{"id":"previous_cid","value":"QmUpNTszMWiGdCuMmrRpsC7hpFWhhoheYq2yahQzmay33k"}],"events":[{"id":"5a05fc7f-653b-46bd-ad3a-1e056019a8af","date":"2021-05-01","title":"Magic Internet Money Project Launch","type":"CREATED","description":"The public launch of the Abracadabra.money platform and its stablecoin, Magic Internet Money (MIM), marked by the creation of its official social media presence.","link":null,"multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"5f9c6491-249d-4b4d-ab56-a81099bf0479","date":"2021-11-01","title":"Reached $5 Billion in MIM Minted","type":"DEFAULT","description":"The project achieved a major milestone by surpassing $5 billion in Total Value Locked (TVL) and minted MIM, highlighting a period of rapid growth.","link":null,"multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"33f23bfc-2b25-41ff-bf27-bc89bd627708","date":"2021-11-01","title":"UST Degenbox Strategy Launched","type":"DEFAULT","description":"The launch of the UST Degenbox strategy, an integration with Terra's Anchor Protocol that allowed users to leverage yield on their UST collateral.","link":null,"multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"2d17ef13-e003-45c1-a72f-ea244a3d5a33","date":"2022-01-01","title":"Statement on Wonderland Controversy","type":"DEFAULT","description":"The Abracadabra team clarified that its teams, smart contracts, and treasury were separate and distinct from the associated project Wonderland amid controversy.","link":null,"multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8AF7a19a26d8FBC48dEfB35AEfb15Ec8c407f889"},"operator":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum","solana","binance-bridged-usdc-bnb-smart-chain"],"founders":["daniele-sesta"],"speakers":[]},"recentActivity":"{\"items\":[{\"id\":\"9d0328ac-7310-41e4-9b13-d76fcf2c58fe\",\"title\":\"Magic Internet Money\",\"description\":\"Magic Internet Money (MIM) is a collateral-backed stablecoin soft-pegged to the USD from the Abracadabra.money platform. It allows users to unlock liquidity from interest-bearing assets and enables cross-chain transfers powered by LayerZero.\",\"timestamp\":\"2025-11-15T04:34:58.387Z\",\"category\":\"Wiki Update\",\"status\":{\"icon\":\"RiGlobalLine\",\"label\":\"Wiki Updated\",\"iconClassName\":\"text-green-500\"},\"user\":{\"name\":\"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889\",\"address\":\"0x4a2bC97afBF41a2Cbf4b4628F63420682Ff4CF2a\"},\"button\":{\"label\":\"View Summary\",\"icon\":\"RiFileTextLine\"},\"summarySections\":[{\"title\":\"Content\",\"subtitle\":\"The article was significantly expanded with several new sections and updated information.\",\"variant\":\"modified\",\"changeCount\":7,\"changes\":[\"Added details about the co-founders to the 'Overview' section.\",\"Added a new 'History and Development' section detailing project milestones, tokenomics, and historical events.\",\"Added a new 'Technology and Mechanism' section explaining the minting process, cross-chain functionality, and DeFi strategies.\",\"Added an 'Abracadabra DAO' subsection to 'Ecosystem and Governance'.\",\"Renamed 'Use Cases' to 'Use Cases and Applications' and added minor details.\",\"Added a concluding sentence to the 'Future Developments' section.\",\"Added a new 'Controversies and Challenges' section covering historical issues with market data, Wonderland.fi, and the Terra-LUNA collapse.\"]},{\"title\":\"Images\",\"subtitle\":\"Two images were added to the wiki gallery.\",\"variant\":\"added\",\"changeCount\":2,\"changes\":[\"Added image with ID 'QmX6Vvvy5EqSaqkidXb3mhPVjUyRRFA1h6MPCUkWC4uBcY'.\",\"Added image with ID 'QmWk3huQpoGCVzk9rtPz16TcSHvcGpw8F6G5t3tAbctNJg'.\"]},{\"title\":\"References\",\"subtitle\":\"A reference's description was updated for clarity.\",\"variant\":\"modified\",\"changeCount\":1,\"changes\":[\"Updated the description for reference ID 'P9oilKVipZPWWRcv' from 'Omnichain MIM Docs' to 'Official documentation for Omnichain MIM capabilities'.\"]},{\"title\":\"Links\",\"subtitle\":\"The external links were updated, removing two blockchain explorers and changing the main website link.\",\"variant\":\"modified\",\"changeCount\":3,\"changes\":[\"Removed link with ID 'etherscan'.\",\"Removed link with ID 'bscscan'.\",\"Updated the primary website link to 'https://docs.abracadabra.money/'.\"]},{\"title\":\"Metadata\",\"subtitle\":\"The editor and version metadata were updated.\",\"variant\":\"modified\",\"changeCount\":2,\"changes\":[\"Changed the editor's user ID from 'anon' to 'daniele-sesta'.\",\"Updated the IPFS hash from 'QmUFzidS7f4tcbRaYJJKYWwcmfvGDpJLi6F85TwT8knPxU' to 'QmPpsHueFAdLrB64RMi68JQJFYxCYFZYgfQjs7Vcb5Bx1A'.\"]}]}]}"}