Abracadabra.Coin's stablecoin, Magic Internet Money (MIM), has surged past a $1-billion full supply this month equally the projection works to provide contest to MakerDAO.

Abracadabra is a cross-chain stablecoin lending protocol that operates on Ethereum, Binance Smart Chain (BSC), Fantom, Avalanche and Arbitrum. Along with MIM, the project also has a SPELL governance token that can be staked on the protocol.

The project describes itself every bit a "spell book" that enables users to provide collateral via interest-begetting tokens, such equally yvUSDC and xSUSHI, and to borrow the MIM stablecoin against their tokens.

"To reverse the spell, the pulley simply returns the conjured MIMs to the spell book. Then the magically locked interest-bearing tokens are released," the website reads.

Involvement-begetting tokens such equally xSUSHI provide the hodler with a cut of the fees from the decentralized exchange (DEX) SushiSwap.

Abracadabra launched in May, and according to CoinGecko, MIM has surged to 7th on the stablecoin rankings and has a market capitalization of $1.14 billion at the fourth dimension of writing.

While MakerDAO's Dai stablecoin currently sits in 4th with a marketplace cap of $6.4 billion, MIM's meteoric rise suggests that it could provide strong competition to the popular platform shortly.

By contrast, Dai was launched dorsum in December 2022 and surpassed a market cap of $one billion in late 2022. A caveat to that, however, is that there was significantly less activity in the crypto marketplace when Dai was initially launched.

Abracadabra takes fees from the interest paid on the loans. It surpassed MakerDAO concluding calendar week in terms of fees, generating $one.27 million versus $969,000, respectively. MakerDAO still looms over Alchemy in terms of total value locked (TVL), with $13.7 billion–$one.7 billion.

Related: MakerDAO founder's plans to accost climatic change and pivot dorsum to ETH

The pseudonymous co-founder of Abracadabra, who goes by the name "Squirrel," told The Defiant on Thursday that the project's success has been driven by its efforts to enable support for multiple blockchains:

"Past beingness multi-concatenation with Abracadabra, we are the first and only decentralized stablecoin that can be minted on diverse chains."

Squirrel also highlighted that its fee construction has contributed to its rapid adoption, equally SPELL stakers receive 75% of the interest payments on the protocols' loans via SPELL tokens that are rewarded to the stakers.