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Abracadabra proposes hiking loan interest rate by 200% to manage Curve risk

Published 08/02/2023, 07:01 AM
Updated 08/02/2023, 09:00 AM

Abracadabra Money, a cross-chain lending platform, has proposed increasing the interest rate on its outstanding loans to manage risks associated with its exposure to Curve DAO (CRV). The proposal drew mixed reactions from the community, with several questioning the modification of loan terms, while others called it a great plan to cut down exposure to CRV.

Abracadabra protocol allows users to earn money by using interest-bearing assets such as CRV, Convex Finance (CVX) and Yearn.finance (YFI) as collateral to mint Magic Internet Money (MIM) — a United States dollar-pegged stablecoin. Spell Token (SPELL) is the native governance and staking token of the Abracadabra platform.

Interest rate hike proposal. Source: Abracadabra
Abracadabra improvement proposal voting snapshot. Source: Abracadabra

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