Abracadabra Cash, a decentralized lending protocol leveraging interest-bearing property to mint a multichain stablecoin referred to as Magic Web Cash, introduced right now that it’s launching a brand new peer-to-peer lending product to enhance NFT liquidity, dubbed AbraNFT.
Abracadabra Launches P2P Lending Protocol AbraNFT
Abracadabra has added a brand new product to the “Frog Nation” ecosystem.
We’re excited to current AbraNFT: our newest peer to look lending market, for NFT collateralised loans!🧙🏼♂️🔮
📖 Learn all about it in our newest medium article👇🏻https://t.co/dhUxi5Bwjz
— 🧙🏼♂️ (@MIM_Spell) April 27, 2022
DeFi lending protocol Abracadabra introduced right now in a Medium weblog publish that it’s launching a brand new peer-to-peer lending primitive dubbed Abra NFT. Per the announcement, the brand new lending market will permit NFT collectors to make use of their non-fungibles as collateral to borrow funds in MIM stablecoins to enhance their liquidity prospects. The venture stated:
“Introducing AbraNFT, a peer-to-peer lending market, permitting NFT collectors to open time-based borrowing positions on their valuable NFTs whereas yield farmers can deploy capital which earns profitable yield from this fast-growing asset class.”
AbraNFT would permit debtors to unlock the in any other case comparatively illiquid capital of their NFT portfolio by taking out MIM loans towards it. The brand new market may even allow MIM holders to lend their stablecoins in change for yield and settle for NFTs as collateral. If it features traction, AbraNFT would safe greater demand and supply extra utility to the stagnant MIM stablecoin and additional enhance the worth proposition of Abracadabra’s native token SPELL by siphoning a portion of the charges from the platform towards its stakers.
Abracadabra is an element of a bigger ecosystem of crypto merchandise, additionally consisting of Wonderland Cash and Popsicle Finance, constructed by the now-disgraced however as soon as revered serial DeFi founder Daniele Sestagalli. Launched in late September final 12 months, Abracadabra shortly rose to fame and have become one of many largest lending and the fastest-growing stablecoin protocols within the area earlier than falling from grace together with the remaining protocols within the Frog Nation ecosystem in late January. Then, Wonderland’s pseudonymous co-founder and treasury supervisor, 0xSifu, was outed as Michael Patryn, a former serial scammer, convict, and co-founder of the collapsed QuadrigaCX change. The revelation sparked outrage throughout the Frog Nation neighborhood and an exodus of capital from all Sestagalli-related tasks. The MIM stablecoin, for instance, noticed its market capitalization shrink by about $1.8 billion in lower than every week following the incident and hasn’t recovered and began rising once more since. For comparability, Terra’s UST stablecoin has grown by roughly $7 billion throughout the identical interval.
Now, the largely written-off Abracadabra appears to be making a comeback by saying a novel peer-to-peer lending market for NFT-collateralized loans. “We’re practically there!” the venture stated within the announcement, including that the AbraNFT’s sensible contracts are “largely prepared” and subjected to a Code4rena audit contest. The SPELL token hasn’t reacted to the information and is presently buying and selling 90% down from its all-time highs made in November final 12 months.
Disclosure: On the time of writing, the creator of this piece owned ETH and several other different cryptocurrencies.