Unlike DAI, Abracadabra does not have a stablecoin deposit module (DSR). In addition, MIM will charge a one-time 0.5% seigniorage tax when the coin is minted. Assuming that the user will return MIM after one month of borrowing, this 0.5% seigniorage tax is equivalent to an annualized 6% additional loan interest.

In the absence of a special stability mechanism, the stability of MIM depends to a large extent on the consensus of users. When users have confidence in the stability of MIM, no matter when MIM is higher than 1$ or lower than 1$, there will be users who will go. Buy debts and sell coins for arbitrage.

In order to maintain this confidence and consensus, Abracadabra established a stable currency exchange pool of MIM and 3CRV (DAI\USDT\USDC) on the Curve platform, and continued to provide additional SPELL token incentives for the liquidity of the stable currency pool.

The current MIM+3CRV stablecoin market-making on Ethereum, in addition to the maximum 13.43% APY CRV token reward, can also obtain 11.82% APY SPELL token reward, the income is very amazing, which also attracted nearly 6.47 Millions of dollars in MIM liquidity. In addition, Abracadabra has also built a MIM+2CRV Factory Pool on Arbitrum's Curve. In addition to the basic market-making fee income, LPs that pledge market-making can also receive an additional 38% SPELL reward.

One of the most interesting concepts surrounding the NFT utility is asset mortgage. NFTs, especially those with important value, can be used as collateral or payment commitments when borrowing basic assets. Once the loan plus interest is repaid, the user can withdraw the NFT. An example of this is NFTfi, a platform that allows users to borrow cryptocurrency by locking their NFT as collateral.

As of now, more than $13.62 million in loans are secured by NFT. As shown in the figure below, valuable collectibles such as Art Blocks, BAYC, CyrptoPunks, and CryptoKitties are one of the main tools used as collateral in NFTfi. The opportunity to use NFT as collateral creates an additional layer of liquidity, which may increase the overall NFT space. On another level, recognized NFT projects have a common behavior, rewarding their investors with additional parts in the related set. Maybe Larva Labs (LL) started this trend. In May 2021, Matt and John from LL announced their next NFT project, which includes 20,000 3D characters living on the Ethereum blockchain. Half of Meebits are awarded to CryptoPunk owners at a ratio of 1:1.

In this way, CryptoPunk holders can claim for free (plus gas fees) the NFT whose reserve price (the cheapest NFT in the collection) at the time of writing this article is 4.36 Ξ or $13,300. It's like receiving a Rolex at Christmas. The model was widely accepted and began to be regarded as a standard. After the Meebits model, several NFT sets follow the LL procedure. For example, BAYC holders received their ape pet companion in the form of a dog from the Boring Ape Kennel Club (BAKC). Ghxsts is a small but important collection that rewards its owners every month, representing each of the 12 constellations. The list can continue.

However, rewarding owners with additional NFTs is not the only way to provide additional utility. Currently, we are seeing projects like CyberKongz, which generate rewards through the collection of native tokens every day. In Kongz's case, $BANANA. Original Kongz holders will be able to claim 10 BANANA tokens per day for the next 10 years. At the current BANANA price, the owner of Genesis Kong can get $390 per day or $140,400 per year. Other projects such as SupDucks ($VOLT) also embed this token reward system into their respective models.

First, keep the overhead within a certain limit-put the ease of node operation above scalability. An efficient client that can better synchronize and store data. Cryptographic solutions such as statelessness and state validity. Currently, Bitcoin is still the easiest mainstream network to verify-anyone can run a Bitcoin node on a laptop. In contrast, Ethereum's threshold is much higher, although certain smart hardware configurations can be supported (mainly solid state drives are required). The user self-verification culture has not died out. Statelessness and state validity are the current two major tasks, which can effectively reduce the difficulty of running Ethereum nodes. In the short term, after the merger of Eth1 and Eth2, we will get an efficient light client. I only know these two projects that focus on security and decentralization.

I will explain why this is so important later. You know, if a network cannot allow users to run their own nodes, the network cannot be called a license-free network. You are just replacing the government and bankers with a limited set of validators.