ITSA lists Abracadabra LP-tokens in Tokenbase

Abracadabra’s main tokens

SPELL — It is the platform’s incentive token, which encourages users to deposit their LPs into Abracadabra in order to earn a yield on a range of LPs such as the MIM-ETH and SPELL-ETH pools.

Figure 1 — Tokenbase list with Abracadabra’s LP tokens (Source: https://bit.ly/2ZZIF36)

Borrowing $MIM and Kashi Lending Technology

The SPELL token incentivizes users to deposit SPELL into the single-sided SPELL vault and earn interest, in return users receive the sSPELL token. After that, users can use their sSPELL to mint and borrow MIM with a maximum collateralization ratio of 85 percent. This simply means that for every $1000 in SPELL, it is possible to borrow $850 in MIM, minus the fees. Through a term called folding/looping, individuals can use their MIM and purchase even more SPELL, which can be staked further and can generate even more interest. MIM can also be borrowed against ibTokens,, these can include xSUSHI, yvUSDC, and so on.

Figure 2 — Abracadabra displays a variety of ibTokens that can be used as collateral (source: https://abracadabra.money/stand)

Leveraging the borrowing against interest-bearing assets

Figure 3 — Process of leveraging a USDT position (source: https://bit.ly/3o3ynXO)

Risks involved

Liquidation risk — This is the underlying risk involved with all borrowing & lending protocols. When depositing collateral in Abracadabra, for example ibTokens, if the value of the ibTokens falls below the value of the MIM borrowed, then the ibTokens will be open for liquidation. This position liquidates the ibTokens that are deposited but the user still gets to keep the MIM borrowed.

The classification of Spell according to the ITC

Figure 4: The Spell Tokenbase entry (Source: https://itin.itsa.global/DZXJ6MVZ4)

The International Token Standardization Association (ITSA) e.V.

The International Token Standardization Association (ITSA) e.V. is a not-for-profit association of German law that aims at promoting the development and implementation of comprehensive market standards for the identification, classification, and analysis of DLT- and blockchain-based cryptographic tokens. As an independent industry membership body, ITSA unites over 100 international associated founding members from various interest groups. In order to increase transparency and safety on global token markets, ITSA currently develops and implements the International Token Identification Number (ITIN) as a market standard for the identification of cryptographic tokens, the International Token Classification (ITC) as a standard framework for the classification of cryptographic tokens according to their inherent characteristics. ITSA then adds the identified and classified token to the world’s largest register for tokens in our Tokenbase.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.

Remarks

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International Token Standardization Association

International Token Standardization Association

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.