Magic Internet Money (MIM) is a decentralized, collateral-backed stablecoin connected with a DeFi platform, Abracadabra.money.

MIM is always 1:1 to the USD and can be used as a bridge asset to multiple chains. These include Ethereum, BSC, Fantom and Avalanche.  MIM's peg is maintained via arbitrage incentives within the Abracadabra ecosystem, Gemini said.

MIM tokens are minted by a Multisign and deposited in Kashi Markets smart contracts.

Users deposit assets into the protocol in exchange for fully collateralized MIM stablecoins pegged to USD. MIMs enter circulation once users deposit collateral

The MIM stablecoin backed is by collateral, transformed into interest-bearing tokens (ibTKNS) which accumulate interest.

"These tokens increase in volume as users pay back interest on portions they borrowed from the lending pool," Coin Rivet said.

These MIM tokens can be utilized throughout the DeFi ecosystem, as Cryptopedia explained.

As Coin Rivet explained, the goal of Abracadabra is to "create an exclusive path for users to get DeFi capital, so they can farm efficiently."

In other words, Abracadabra allows platform users to farm with leverage.

When was MIM created and how much was it worth?

MIM first began trading in June of 2021 and by the following October had surpassed $1 billion in market capitalization, causing a stir in a crypto community which at the time seemed surprised that Maker had a challenger.

How is the price of MIM determined?

MIM keeps its peg via arbitrage incentives within the Abracadabra ecosystem. When MIM trades under $1, arbitrageurs are incentivized to buy MIM at a discount; If MIM trades above $1, arbitrageurs are incentivized to borrow MIM and sell it at a premium.

Why does MIM have value?

MIM stablecoin is hitched to the success of Abracadabra.money, a DeFi lending platform with a focus on cross-chain compatibility and which has integrations.

Abacadabra.money facilitates leveraged yield farming while allowing users to mint MIM which can be used on other platforms to earn interest.

Is MIM secure?

The project’s token smart-contract has been audited, Certified said.

Also, MIM has an insurance fund for the hack cases.

What are the main benefits of MIM?

• Users can choose from a variety of their favorite assets to put down as collateral to borrow MIM. Abracadabra allows its users to efficiently control their collateral rates.
• When users deposit assets into the protocol, via ibTKNs, in exchange for fully collateralized MIM stablecoins pegged to USD, they "simultaneously earn yield on ibTKNs deposited as collateral while borrowing against them to receive MIM tokens in return," Cryptopedia said.
• On exchange platform Anyswap, users can send MIM between compatible blockchains in mere minutes.

What do critics say about MIM?

Magic Internet Money, with its spellbook theme and decidedly unserious name, is considered strange, BeInCrypto said, as it is "both a memecoin and a stablecoin project all in one."

Additionally, Abracadabra still needs to build and maintain a decentralized governance system, Coin Rivet said.