Magic Internet Money (Avalanche)


MIM is an overcollateralized and decentralized stablecoin, backed by yield-accruing assets

Risk Rating
What we like
Offers users a permissionless, decentralized method to gain exposure to a non-volatile store of value that is backed by its underlying collateral.
What we like less
The underlying collateral for MIM consists of riskier interest-bearing assets, which has lead to the accumulation of bad debt.
What it means for you
MIM is a great instrument to earn "stacked" yield by levering up with your yield-bearing assets as collateralization ratios generally improve over time while earning additional yield by putting USD to work for you in DeFi.

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  • Avalanche
Key Metrics
  • Market Cap: $55.4M
  • Fully Diluted Valluation: $182.1M
  • FDV / MC: 3.3
  • Ranking inside Exponential (among stables): #20
  • Circulating Supply: 55,611,861
  • Total Supply: 181,952,301
  • Volume (24H): $1.3M
  • ATH: $1.04 (10/06/2021)
  • ATL: $0.84 (01/30/2024)
Risk Assessment
Asset Strength

MIM is a low-cap asset with questionable collateral reserves. This asset is exposed to the underlying risks of Abracadabra, a protocol rated as Watch out.

MIM is a stablecoin that trades within 50bps of its peg to USD, which makes it a less volatile store of value.

Asset Tokenomics

MIM has an uncapped supply but has inflation control or burn mechanisms in place.

Asset Volatility

MIM is a stablecoin that trades within 50bps of its peg to USD, which makes it a less volatile store of value.



Things to know about MIM

How is MIM created?

MIM is a collateral-backed stablecoin created by Abracadbra. Its value is pegged to the USD and kept stable through an economic system of aligned financial incentives. MIM is minted when users borrow against locked collateral and burned when debt is repaid.

What is MIM used for?

MIM is a price-stable asset that is mostly used as a hedge against volatility as it maintains a stable value of around 1 USD. Users need an alternative store of value and medium of exchange to navigate the highly volatile crypto markets. MIM addresses this problem for crypto native users, as well as enables a wide range of financial activities including hedging during periods of high market volatility, market making against a stable asset, and use as collateral for leveraging.

How is the price of MIM kept stable?

MIM is an asset-backed currency that maintains a free-floating peg to the USD. This means that its value may differ from exactly 1 USD from time to time given current market conditions. MIM follows the DAI overcollateralization model to maintain its peg via a combination of external market forces, internal economic incentives, and policy tools controlled by SPELL token holders. The different market actors all acting in self-interest, work in concert to maintain MIM's stability. Borrowing fees are one policy tool that is used to manage the circulating supply of MIM. Decreasing the borrowing fee helps incentivize the minting of additional MIM, while increasing the borrowing fee has the opposite effect of reducing the rate of MIM creation. Vault owners also play an important role in maintaining the peg by minting MIM when spikes in demand push its price above 1 USD, and conversely purchasing MIM to pay down their debt at a discount when it trades below 1 USD. Lastly, arbitragers contribute to maintaining the MIM peg by taking advantage of price differences across various market makers.

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