Overcollateralized borrowers deposit funds into Abracadabra and receive MIM stablecoin.

Abracadabra is a non-custodial stablecoin protocol built on Ethereum and other adjacent blockchains. Abracadabra was founded by Daniele Sestagalli and launched in 2021.

SPELL tokenholders own and govern the protocol. Currently, the interest and borrowing fees paid by borrowers (revenue) are shared between tokenholders and the project treasury.

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Abracadabra.money

# Abracadabra.money Earnings Methodology

## 1. Overview

Abracadabra earnings represents the net profitability of the protocol, calculated as total revenue minus total expenses on a daily basis. This metric shows how much profit the protocol generates after accounting for token incentives paid to external protocols. Revenue comes from borrowing fees, interest accruals on loans, and cross-chain transfer fees through LayerZero bridges. Expenses consist of token incentives (bribes) paid to Curve, SushiSwap, and Velodrome to maintain MIM stablecoin liquidity and voting power.

## 2. Data sources

The calculation uses several types of blockchain data and external feeds:

- **Lending protocol events**: Parsed `LogBorrow` and `LogAccrue` events from Abracadabra cauldron contracts on Ethereum, Arbitrum, Avalanche, BSC, and Fantom
- **Cross-chain bridge data**: Native token flows from LayerZero bridge contracts and `LogFeeCollected` events from fee handler contracts on Base
- **Bribe protocol events**: `RewardClaimed` events from Curve's yBribe contract on Ethereum, `Deposit` and `Withdraw` events from SushiSwap's Sorbettiere contracts on Ethereum and Arbitrum, and `ClaimRewards` events from Velodrome bribe contracts on Optimism  
- **Transaction filtering data**: LayerZero `SendToChain` events used to identify genuine protocol transactions versus user transactions
- **Token transfer data**: Parsed `Transfer` events from specific bribe accounts to calculate SushiSwap incentive amounts
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal correction

## 3. Step-by-step calculation

### Component A: Revenue calculation

**Purpose**: Calculate total daily revenue from all protocol fee sources

**Logic**: Revenue combines four distinct fee streams. Borrowing fees are extracted from `LogBorrow` events across all supported chains, then multiplied by pool-specific fee tiers ranging from 0% to 1% as defined in the pool configuration. Interest fees come directly from `LogAccrue` events representing interest earned on outstanding loans. Beam v1 fees are calculated by tracking native token flows to and from LayerZero bridge contracts, filtered to include only transactions that appear in the `SendToChain` event logs to exclude user transactions. Beam v2 fees come from `LogFeeCollected` events on Base. All fee amounts are converted to USD using end-of-day price feeds and token decimals are corrected before conversion.

**Key fields**: Pool addresses map to `borrow_fee_tier` values, `amount` from borrow events multiplied by fee tier, `accruedAmount` from interest events, native flow `value` amounts for beam fees, and `amount` from fee collection events

### Component B: Expenses calculation  

**Purpose**: Calculate total daily expenses from token incentives paid to external protocols

**Logic**: Expenses consist of token incentives (bribes) paid to three protocols. Curve bribes are identified from `RewardClaimed` events where the gauge address matches MIM-related pools, capturing SPELL token rewards claimed. SushiSwap bribes are more complex - they're calculated by matching `Deposit` and `Withdraw` events from Sorbettiere contracts with an allowlist of specific transaction hashes and their corresponding token amounts, ensuring only legitimate bribe payments are counted. Velodrome bribes come from `ClaimRewards` events on Optimism where the reward token is SPELL. All incentive amounts are converted to USD using end-of-day price feeds with proper decimal correction.

**Key fields**: `amount` values from reward claim events, allowlisted transaction `amount` values for SushiSwap calculations, and `amount` from Velodrome claim events

### Component C: Final aggregation

**Combining components**: Revenue and expense components are calculated separately then combined in the final earnings calculation. Both components use daily timestamp truncation and are aggregated by chain, product, and other categorical dimensions.

**Currency conversion**: All token amounts are converted to USD using end-of-day price feeds through the `convert_to_usd_and_correct_decimals` macro, which handles decimal correction before USD conversion to ensure accurate pricing.

**Time aggregation**: Data is aggregated to daily boundaries using `timestamp_trunc(block_timestamp, day)` and missing days are handled with a 'fill_zeros' strategy to ensure continuous time series.

**Final calculation**: Earnings = Daily Revenue - Daily Expenses. The calculation uses the `calculate_earnings` macro which subtracts the expenses metric from the revenue metric on a daily basis, maintaining all dimensional breakdowns (chain, product, etc.) and ensuring proper handling of missing data points.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

Abracadabra.moneySPELL

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