Borrow
This page will give a description of the BORROW page
โ€‹Abracadabra uses Kashi Lending Technology to provide isolated lending markets, that allow users to adjust their risk tolerance according to the collateral they decide to use. To read more about how isolated lending Markets and Kashi works, and why they are different from traditional lending protocols, please refer here.

Depositing Collateral and Borrowing MIM

Head over to abracadabra.money and click on BORROW.
Once on the Borrow Page, you will be able to select the collateral you will be able to borrow against, by simply clicking on the highlighted frame.
Once selected it, you are gonna be able to see all the different tokens available in your wallet and our markets.
Clicking on the collateral will automatically select the appropriate market.
In this example we are going to use xSUSHI tokens as collateral.
First, decide how much xSUSHI will be used as collateral. Then decide how much MIM will be borrowed by either typing in the numbers or using the percentage buttons below.
Once you have selected your parameters, the box on the right will show you how your positions will look like, after/if the transaction is confirmed.
  • Collateral Deposited: Amount of collateral into the position.
  • Collateral Value: Current Value of the collateral deposited.
  • MIM Borrowed: Total Amount of MIM that will be borrowed after the position is opened.
  • Liquidation Price: The Liquidation Price will display the collateral price at which we can be flagged for liquidations.
The small box on the bottom left part of the screen shows the user how many tokens are available in his wallet.

Liquidation Price

A liquidation price of $0.71 means that if your interest-bearing token drops to or below $0.71, your position is at risk of being liquidated. The liquidation price shown is always linked to the interest-bearing token which is used to borrow MIM. You can read more about liquidations in the dedicated section of this Wiki.

Market Parameters

The box underneath the two buttons describes the Lending Market parameter. Note that each of this parameter is specific to the collateral you selected.
  • Maximum collateral ratio - Maximum collateral ratio represents the maximum amount of debt a user can borrow with a selected collateral token.
  • Liquidation fee - This is the discount a liquidator gets when buying collateral flagged for liquidation.
  • Borrow fee -This fee is added to your debt every time you borrow MIM. As an example, if you borrow 1000 MIMs your debt will be increased to 1000.5 MIMs but you will actually receive 1000 MIM. These 0.5 MIMs will be distributed to sSPELL holders.
  • Interest - This is the annualized percent that your debt will increase each year. The interest fee is later distributed to sSPELL holders.
  • Price - Current price of the collateral selected.

Opening a position

Once you have decided the values that you want to use, simply click on the two buttons underneath the Liquidation Price to open your position!
Note that if this is your first time using Abracadabra, several approvals might be needed before you can join the position!
This will remove the collateral in your wallet and place them in the contract, and put the respective MIM tokens in our wallet.
Once the transaction is confirmed, the user will receive a pop up that will redirect him to the "Positions" Page, where he can edit, repay or close his position.

Closing a position

In order to close your position, head over to the Position page, and click on the repay.
Once there, you will be able to repay your MIMs and remove your collateral. Make sure not to remove collateral before repaying as it may lower your liquidation price.
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On this page
Depositing Collateral and Borrowing MIM
Liquidation Price
Market Parameters
Opening a position
Closing a position