MIM

Abracadabra uses interest-bearing tokens as collateral to mint MIM. Interest-bearing tokens that can currently be used as collateral include liquidity provider (LP) tokens from Convex, Curve, Yearn, among others. Loan liquidations in Abracadabra differ from other stablecoin/lending protocols like MakerDAO, such that each collateralized debt position (CDP) is unique and has its own liquidation price. When the liquidation price for an individual CDP is crossed, a liquid

Tokenator can buy the position by paying off any outstanding MIM.

MIM is an ERC-20 token that is soft-pegged to USD. MIM remains pegged via arbitrage incentives within the Abracadabra ecosystem. When MIM is trading below USD1.00, arbitrageurs are incentivized to buy MIM at a discounted price, and potentially pay off some of their debt at a cheaper price than if MIM were USD1.00. If MIM is trading above USD1.00, arbitrageurs are incentivized to borrow more MIM and sell it at a premium.