Abracadabra: Decoding MIM Borrow Fees Across Seven Chains

2026-08-26

Abracadabra.money is a collateralised-debt-position protocol that lets users deposit yield-bearing assets: yvUSDC, xSUSHI, wrapped staked ETH, and others: and borrow MIM (Magic Internet Money), its native USD-pegged stablecoin. MIM can then be swapped for any other stablecoin. The design unlocks liquidity from idle yield positions without requiring users to sell them, letting DeFi-native holders lever up on their staked and yield-generating assets.

Revenue flows from three sources inside each Cauldron, which is Abracadabra's name for its borrowing contracts. First, a one-time fee is paid when a position is opened. Second, interest accrues on outstanding MIM debt at an annualised rate set per Cauldron. Third, liquidation penalties are charged when undercollateralised positions are closed. The protocol retains 50% of total Cauldron fees. The remaining 50% funds SPELL token buybacks and is distributed to mSPELL stakers.

The adapter reads LogRepay, LogBorrow, and LogExchangeRate events from each deployed Cauldron contract across Ethereum, Avalanche, Arbitrum, Fantom, BSC, OP Mainnet, and Kava. The interesting challenge here is that interest doesn't emit an event: it accumulates block-by-block through a debt-growth formula applied to each position's balance. Computing daily interest revenue required snapshotting the global debt multiplier at the start and end of each day rather than summing explicit payment events, then applying the 50/50 protocol split after aggregating all fee types.

All-time fees have reached $77.7 million, reflecting how heavily the protocol was used at its peak during the 2021–2022 bull market when leveraged stablecoin strategies were popular. Current activity is much lower: 24-hour fees are near zero: but the protocol's historical footprint is significant, and tracking it accurately required handling all seven chains simultaneously with correct cross-chain fee aggregation.

Website: abracadabra.money · Twitter: @MIM_Spell