{"id":206579,"date":"2021-12-02T09:30:41","date_gmt":"2021-12-02T09:30:41","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=206579"},"modified":"2026-10-24T11:51:43","modified_gmt":"2026-10-24T10:51:43","slug":"how-abracadabra-became-one-of-the-fastest-growing-decentralized-protocols","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/how-abracadabra-became-one-of-the-fastest-growing-decentralized-protocols\/","title":{"rendered":"How Abracadabra became one of the fastest-growing decentralized protocols"},"content":{"rendered":"

There is still no consensus about the best method of creating a stable currency on the blockchain.\u00a0\u00a0<\/span><\/p>\n

While USDT is the most popular stablecoin, many believe it is a giant house of cards capable of crashing the whole system.\u00a0<\/span><\/p>\n

On the other hand, the major decentralized <\/span>stablecoin<\/span><\/a>, DAI, has its own set of problems, such as the high percentage of USDC as the collateralized asset which is incompatible with hardcore decentralization advocates.<\/span><\/p>\n

Many new products have entered the market trying to incorporate the best elements of the big players.\u00a0<\/span><\/p>\n

Enter Abracadabra, a polarizing project that has risen unstoppably from a TVL of less than $300 million at the beginning of September to $4.4 billion.\u00a0<\/span><\/p>\n

With Ethereum occupying 78% of its market share of TVL<\/span>, <\/b>Abracadabra is also gaining momentum on other blockchains, currently supporting Arbitrum, Avalanche and Fantom, and BSC.<\/span><\/p>\n

Here\u2019s how Abracadabra has grown so quickly.\u00a0<\/span><\/p>\n

\"Footprint
Footprint Analytics: TVL of Abracadabra by Chain<\/figcaption><\/figure>\n

Creating a multi-functional, one-stop experience<\/b><\/h2>\n

Abracadabra has slightly different functions for different chains. In the case of Ethereum, which has the highest TVL, it currently has farm, borrow, stake, and tools (including bridge, swap, and analytics) functions.<\/span><\/p>\n

\"Source:
Source: Abracadabra<\/figcaption><\/figure>\n

Borrow<\/b><\/h3>\n

Abracadabra's main business is based on lending, and the outstanding difference from other over-collateralized lending protocols is the support of <\/span>interest-bearing tokens (ibTKNS) as collateral<\/b>.<\/span><\/p>\n

For example, the ibTKNS certificates obtained from assets deposited in Yearn to yVaults can still be used as collateral to lend stablecoins in Abracadabra, which are MIM (Magic Internet Money). This allows the interest on the original asset to be preserved while also borrowing funds to obtain additional liquidity.<\/span><\/p>\n

Most of the collateral currently backed by Abracadabra remains predominantly ibTKNS, along with tokens backing:<\/span><\/p>\n