Blackmagic, VOODOO and Crazy Internet Money

Introduction to Blackmagic:

Blackmagic is a protocol born from the dark art of black magic to make your crypto work for you.

TLDR

• Yield-generating and interest-bearing tokens are the collateral
• Each collateral has independent debt
• CIM is USD
• VOODOO is staked for sVOODOO
• sVOODOO is for voting and fee-sharing
• Blackmagic for BSC degens

If you are a holder of one of the following yield-generating tokens (ygTKN) from EnreachDAOs Yaggr, BlackMagic is the project for you:

• ygEPS
• yg{UST3EPS EPSLP}
• ygGYRO
• ygNRCH
• yg{BNB-NRCH SLP}
• yg{BNB-CIM SLP}
• yg{wsGYRO-NRCH SLP}
• ygUST
• ygMIM

You can use these assets as collateral to mint Crazy Internet Money (CIM).
Due to the fact that CIM is backed by ygTKNs, your collateral value is always increasing.

So what is CIM you may ask? The meme version of CIM or the Blackmagic version of CIM?

CIM is Blackmagics version of a USD pegged stable coin. As with most stablecoins, it will be traded on markets with other stablecoins such as USDT, BUSD, and USDC.

How does Blackmagic Work?

Users follow the steps:

Step 1 — Collaterals are deposited on Blackmagic.money

Step 2 — A debt allocation, with interest, is assigned to the borrower

Step 3 — CIM tokens are deposited into the borrower’s wallet

Step 4 — Users take their CIM wherever they like

How to Reverse the Process?

To regain one’s collateral, users will need to repay their debt plus their interest incurred to be allowed to withdraw their collateral.

The Crazy Internet Money Token

The CIM token is a USD pegged stable coin that is backed by ygTKNs. CIM tokens are minted by the multisig holders on Binance Smart Chain, and only after being collateralized are they injected into circulation. In the future, they may be bridged to other blockchains.

How much CIM can I get?
The amount of CIM depends on two factors for each collateral you decide to deposit. One is the Loan to Value ratio (LTV), and the other is the initial maximum CIM allocation to that collateral. The following table shows the factors relating to collateral:

Everything clear? Let’s run through a quick scenario.
Baron Samedi is a BSC degen warlock who owns $100,000 UST, and he is a fan of stable swap protocol Ellipsis. He has decided to deposit his UST into the yield generating stable coin basket UST3EPS so that he can earn some juicy returns from fees generated on Ellipsis Finance.

Thus Baron Samedi now owns $100,000 of UST3EPS that have a total value of $100,000 and are increasing in value. Baron Samedi gets bored and wants to use this money to buy himself a gangster Mercury Marauder.

How can he do this?

Baron Samedi deposits the $100,000 worth of yield generating LP tokens into Blackmagic, he then chooses how much risk he wants to take on. As he is a true degen, he mints 91% of his collateral. He then clicks Borrow and “double, double, toil and trouble; fire burn, and cauldron bubble” he receives 91,000 CIM.

(He will be paying an interest rate of 1% because of his collateral choice).

He then goes and asks seller of the gangster Mercury Marauder what stablecoin they prefer, USDT, USDC, or BUSD.

The dealer says USDC, so the Baron swaps his CIM for USDC in the Ellipsis CIM-3EPS pool. So he now has more or less 91,000 USDC.

He pays $10,000 for his gangster Mercury Marauder and uses the remaining $81,000 on costumes, face paint, underwear and the blood of 10 virgins. Remember his initial UST deposit is increasing in value while he is cruising in his evil ride listening to VOODOO incantations.

Hocus pocus and your solution to buy the Mercury Marauder is crisp!

The Blackmagic of the VOODOO Token

VOODOO is the Blackmagic token with a maximum supply of 210 billion. It will go live on Binance Smart Chain, and smart contracts to interact with will be released in our telegram group (https://t.me/blackmagicmoney).

The distribution of the VOODOO tokens is as follows:

• 8% — Treasury Generation Event
• 20% — SushiSwap BNB-VOODOO LP tokens
• 4% — SushiSwap CIM-VOODOO LP tokens
• 41% — Ellipsis Finance CIM-3EPS LP tokens
• 27% — DAO Treasury

What does VOODOO do?

The main function of the VOODOO token is to stake it in Blackmagic to obtain sVOODOO tokens, which have several benefits.

• First, they grant holders voting rights to change the platform parameters, such as TVL, Liquidation Fees, future collateral options, etc.
• Second, they grant holders a claim on fees generated by the protocol.

The protocol fees, at launch, derive solely from interest on borrowed CIM. As debt is paid in CIM, fees are collected. They are distributed as follows:

• 80% are used to purchase VOODOO tokens that go to sVOODOO token holders
• 20% is allocated to the DAO Treasury but initially will be used to incentivise CIM liquidity pools (e.g. CIM-VOODOO SLP and/or CIM-BNB SLP)

(DAO Treasury can be used when market conditions require intervention)

Risks of Using Blackmagic

With all lending and borrowing protocols, there is a chance of liquidation. Liquidation occurs when the value of collateral drops to a predetermined point. Basically, your collateral isn’t enough to cover your debt. This predetermined point is shown once you open your debt position on Blackmagic.

In the event that your position is liquidatable, a third party can choose to pay off your debt in exchange for your collateral plus a liquidation fee. If there happens to be any collateral left, users can withdraw it.

Remember that each collateral has an independent market on Blackmagic! This is a powerful feature because users can select which assets they are comfortable taking on more risk with, and which they are not.

Risk 2

Blackmagic uses smart contracts and thus like with any other DeFi project there are chances of smart contract bugs and exploits.