What is Abracadabra Money (SPELL/MIM)?
👋 New to this? Just start reading at the top — it begins in plain English and gets more detailed as you scroll. Jump to any level:
🟢 The simple version
Plain English — no jargon. Start here.
Abracadabra Money lets you deposit yield-bearing tokens (yvUSDC, stETH, cvxFRAX) as collateral to mint MIM (a dollar stablecoin) — keeping your yield-earning position while accessing dollar liquidity — but suffered a MIM depeg in 2022 tied to the Wonderland/TIME collapse.
Cauldrons — yield collateral
Aave accepts base assets (ETH, USDC). Abracadabra Cauldrons accept yield-bearing versions: yvUSDC (Yearn), stETH (Lido), cvxFRAX (Convex). Your collateral keeps earning yield while you borrow MIM. Example: deposit yvUSDC earning 8% → borrow MIM → collateral keeps compounding. 2022 events DOCUMENTED: MIM depegged during UST/Luna collapse + Daniele Sestagalli (Abracadabra co-creator) also co-created Wonderland (TIME token), whose collapse caused cascading ecosystem damage. Protocol rebuilt post-2022 with more conservative collateral. Is SPELL legal in India? Yes. 30% tax, 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
SPELL token and rebuilding
SPELL governance + borrow fee share. Post-2022: more conservative Cauldron parameters, reduced exotic collateral exposure. MIM remains operational as a DeFi stablecoin used in Curve pools. The Wonderland/TIME connection is historical context any SPELL evaluator should know.
🟣 The full technical picture
For the technically curious.
Key facts
- SPELL: Governance + fee share
- MIM: Dollar stablecoin from yield collateral
- Cauldrons: Per-collateral markets
- 2022: MIM depeg + Wonderland/TIME collapse