How Abracadabra Uses Gelato to Automate Cross-chain Process
Discover how Abracadabra uses Gelato Ops to automate their repetitive & tedious tasks
Running a successful web3 project is magic in its own right. But managing recurring payouts or rewards to users across multiple EVM chains wasn’t the kind of magic Abracadabra.Money, a DeFi lending platform, wanted to be doing.
Abracadabra uses interest-bearing tokens as collateral to borrow $MIM, a USD-pegged stablecoin. Unlike many other tokens that can’t be put to further use, MIM offers advanced composability for developers and users to enjoy maximum capital efficiency.
For a large project that lives on six networks, sending recurring payouts of $MIM rewards to $SPELL stakers who staked on multiple EVM chains can be daunting. That’s why Abracadabra decided to integrate Gelato’s automation under the hood.
We spoke with the Abracadabra team about their experience with Gelato and what’s next for Abracadabra.
Tell us about Abracadabra — what problem does Abracadabra solve?
Abracadabra is a lending protocol that allows users to borrow our stablecoin Magic Internet Money, providing different kinds of collateral. We started off by focusing entirely on interest-bearing collaterals- helping users to make that liquid by borrowing against it and we then moved also to more “Traditional” collateral types like WBTC, WETH, etc.
Thanks to our built-in leverage engine, we allow users to leverage up against most of our accepted collateral in a cheap and easy-to-use fashion.
Over the past 6 months, we decided to specialize in yield-bearing strategies thanks to the use of our “Degenbox.” Degenbox allows users to use collateral while still being kept in the market. An example of this is our Stargate Strategies, where USDC* and USDT* are farming STG tokens while being used as collateral.
How do people use Abracadabra?
Most people use abra for the relevant farming strategies that we’re able to offer, as well as the cost-efficient leverage that we provide.
How is Abracadabra utilizing Gelato automation?
Abracadabra is a protocol extremely prone to be Multichain. Our lending markets are available on Avax, Arbitrum, BNB Chain, and of course, Ethereum. Before Gelato, if users wanted to participate in the fee-sharing mechanism of Abracadabra, they could only stake on Ethereum using sSPELL.
A few months back, we decided to release our new staking mechanism called mSPELL. Users can stake their SPELL tokens on every chain they want and receive MIM rewards on those chains, therefore avoiding Ethereum’s large gas fees.
To manage all these payments, we use Gelato Network. In order to give the same pro-rata share of the payment, we need to aggregate the information on how much SPELL is staked on each network and relay it back to Ethereum, where then a contract is triggered that starts the distribution.
Gelato helps us in two ways:
1. Three times a week, Gelato takes a snapshot of how much SPELL is distributed on each chain, aggregates the amounts, and then sends this information back to Ethereum thanks to a messaging layer (in this case, LayerZero).
2. On Ethereum, a transaction is called that triggers the distribution. Gelato automatically distributes the correct amount and bridges MIM towards each chain. If one chain does not receive the distribution, the whole transaction fails, and it is reverted.
And just like that, Gelato keeps executing this loop once every few days, without any interaction from our devs, as long as the contracts have a balance.
More details on how the system actually works can be found in this video here.
What are some of the main ways Abracadabra is benefiting from Gelato? What value is Gelato providing?
This system relies on Gelato Network for each contract automation and helps us distribute the correct amount of MIM per user without the need to do it manually, saving time and reducing the possibility of human error.
What’s the next for Abracadabra?
Our roadmap is extremely busy right now. We will first launch MIG lending markets, where users can borrow our gold pegged stablecoin Magic Internet Gold. More information on this will be available soon on our main socials.
We will then launch Abra NFT, a P2P lending product for NFT time-based loans. If you wish to read more about it, you can find an article here:
We are super excited about the future and any other collaboration opportunity with Gelato!
About Gelato Network
Gelato Network is web3’s automation network, enabling developers to automate & relay arbitrary smart contract executions on and across all EVM-based compatible blockchains such as Ethereum.
Gelato’s goal is to provide developers with a reliable, scalable & decentralized network to which they can outsource all of their web3-related DevOps operations.
Examples of which features are powered by Gelato include:
- Limit Orders on PancakeSwap
- Periodically updating debt ceilings on MakerDAO
- Offering users gasless token claims on Connext
- Automatically compounding yield farming vaults on Beefy Finance
- Automating the breeding of new digital racehorse NFTs on ZED RUN
- Rebasing of algorithmic stablecoins with Tomb Finance
- Updating price oracles on Abracadabra
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► Check out what we’ve been working on at 🍦 https://gelato.network/🍦
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