This guide provides a technical overview of the Abracadabra Money Official protocol, focusing on how to mint the Magic Internet Money (MIM) Stablecoin and utilize the protocol's unique leverage engine.
Step 1: Understanding Interest-Bearing Collateral
The core of Abracadabra's architecture is its use of Abracadabra Interest-Bearing Collateral. Instead of depositing static assets like ETH or WBTC, users deposit yield-bearing tokens (e.g., yvUSDT, yvWETH from Yearn). This means your collateral is earning yield while it's being used to borrow MIM. Your application must be able to interact with the ABIs of these various interest-bearing tokens.
Step 2: Minting MIM
The process follows the standard CDP model, detailed in the Mint MIM Guide:
Your application approves the Abracadabra Kashi-based market contract to spend the user's interest-bearing collateral token.
Call the borrow() function, specifying the amount of MIM to mint.
The protocol issues MIM to the user's address. The health of the loan is determined by the collateral ratio.
Step 3: Programmatic Leverage (Degenbox)
This is Abracadabra's killer feature. The Abracadabra Degenbox Strategy allows for one-click leveraged positions.
Mechanism: The smart contract executes a loop:
It borrows MIM against the initial collateral.
It swaps the borrowed MIM for more of the original collateral token.
It deposits the newly acquired collateral back into the CDP.
This loop repeats multiple times in a single transaction.
Implementation: Developers can integrate this by calling the leverage() function, specifying the desired leverage multiple and slippage parameters.
Step 4: Security and Repayment
The question "Is Abracadabra Money Safe?" is addressed by its Abracadabra Multisig Security on key contracts, but also by the user's risk management. The MIM Repayment Process is critical: to deleverage or close a position, the user must repay the MIM debt plus any accrued interest.
For all official market contract addresses and function signatures, refer to the Full Official Documentation.
https://sites.google.com/verify-chain.org/abracadabra-money/
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