Abracadabra Money, a decentralised lending protocol that uses interest-bearing assets to create a multichain stablecoin called Magic Internet Money, announced today the introduction of AbraNFT, a new peer-to-peer lending product designed to improve NFT liquidity.
The Protocol for DeFi Lending Abracadabra announced today in a Medium blog post that it is releasing Abra NFT, a new peer-to-peer lending primitive. According to the release, the new loan market would enable NFT collectors to borrow sums in MIM stablecoins using their non-fungibles as security.
Borrowers using AbraNFT would be able to access the generally relatively illiquid capital in their NFT portfolio by taking out MIM loans against it. MIM holders will also be able to lend their stablecoins in return for income on the new marketplace, which will take NFTs as collateral. If it develops momentum, AbraNFT will ensure stronger demand and bring more use to the dormant MIM stablecoin, while also increasing the value proposition of Abracadabra’s native token, SPELL, by syphoning a part of the platform’s revenues toward its stakers.
Abracadabra is part of a bigger ecosystem of crypto goods developed by the now-disgraced but once-revered serial DeFi creator Daniele Sestagalli, which also includes Wonderland Money and Popsicle Finance. Abracadabra, which was launched in late September of last year, swiftly climbed to prominence and became one of the biggest lending and fastest-growing stablecoin protocols in the space before collapsing along with the other protocols in the Frog Nation ecosystem in late January. Then, Wonderland’s treasury manager, 0xSifu, was revealed to be Michael Patryn, a former serial fraudster, criminal, and co-founder of the defunct QuadrigaCX exchange. The news provoked indignation in the Frog Nation community, as well as a money outflow from all Sestagalli-related ventures. The MIM stablecoin, for example, had its market value dropped by $1.8 billion in less than a week after the event and has yet to recoup and begin rising again. In contrast, Terra’s UST stablecoin has increased by almost $7 billion during the same time span.
