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 Expenses Methodology

## 1. Overview

The Abracadabra expenses metric measures the total USD value of token incentives (bribes) paid by Abracadabra to various DeFi protocols to influence governance decisions and liquidity provision. This metric captures operating expenses related to Abracadabra's strategy of using SPELL token bribes across Curve, SushiSwap, and Velodrome protocols to maintain favorable conditions for their stablecoin ecosystem.

## 2. Data sources

- **Ethereum event logs**: Parsed `yBribe_RewardClaimed` events from Curve's bribe infrastructure and `Sorbettiere_Deposit`/`Sorbettiere_Withdraw` events from SushiSwap's staking contracts
- **Arbitrum event logs**: Parsed `Sorbettiere_Deposit`/`Sorbettiere_Withdraw` events from SushiSwap's staking contracts
- **Optimism event logs**: Parsed `Bribe_ClaimRewards` events from Velodrome's bribe infrastructure
- **Token transfer data**: Ethereum and Arbitrum token transfer records filtered by specific Abracadabra-controlled addresses to validate bribe amounts
- **Price feeds**: End-of-day SPELL token price feeds across multiple chains
- **Token metadata**: SPELL token contract information for decimal correction across chains

## 3. Step-by-step calculation

### Component A: SushiSwap bribe identification
- **Purpose**: Identifies SPELL token bribes paid to SushiSwap through staking contract interactions
- **Logic**: Extracts `Sorbettiere_Deposit` and `Sorbettiere_Withdraw` events from Ethereum and Arbitrum. These events are filtered through an allowlist mechanism that matches transaction hashes with actual SPELL token transfers from specific Abracadabra addresses (`0xf43480afe9863da4acbd4419a47d9cc7d25a647f` on Ethereum and `0x839de324a1ab773f76a53900d70ac1b913d2b387` on Arbitrum). Only transactions that appear in both the event logs and the token transfer allowlist are counted as legitimate bribes.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` for matching with allowlist, `amount` from token transfers for bribe quantity

### Component B: Curve bribe extraction
- **Purpose**: Captures SPELL tokens claimed as rewards from Curve's bribe system
- **Logic**: Extracts `yBribe_RewardClaimed` events from Ethereum where the gauge parameter matches the specific Curve gauge address (`0xd8b712d29381748db89c36bca0138d7c75866ddf`). These events represent SPELL tokens paid by Abracadabra to influence Curve governance voting.
- **Key fields**: `block_timestamp` for timing, `amount` for claimed bribe quantity, `gauge` for target validation

### Component C: Velodrome bribe extraction
- **Purpose**: Captures SPELL tokens claimed from Velodrome's bribe infrastructure on Optimism
- **Logic**: Extracts `Bribe_ClaimRewards` events from Optimism where the reward token matches the Optimism SPELL token address (`0xe3ab61371ecc88534c522922a026f2296116c109`). For price calculation consistency, these amounts are mapped to the Ethereum SPELL token address for USD conversion.
- **Key fields**: `block_timestamp` for timing, `amount` for claimed bribe quantity, `reward` for token validation

### Component D: Data combination and validation
- **Purpose**: Merges all bribe sources and applies business logic classification
- **Logic**: Combines SushiSwap, Curve, and Velodrome bribe data into a unified dataset. Each record is classified under the 'Stablecoin issuer' business line and 'v1' version. Chain mappings are standardized, with Velodrome data maintaining both the original chain (Optimism) and the price calculation chain (Ethereum).
- **Key fields**: `bribe_type` for source identification, `chain` and `real_chain` for cross-chain handling

### Final aggregation
- **Combining components**: All bribe components are unioned together with consistent schema including timestamp, chain, token address, and amount fields
- **Currency conversion**: Raw SPELL token amounts are converted to USD using end-of-day price feeds with automatic decimal correction based on token metadata. The conversion uses the appropriate chain's SPELL token price (Ethereum prices for Velodrome data consistency)
- **Time aggregation**: All timestamps are truncated to daily granularity using `timestamp_trunc(block_timestamp, day)` with 'day' grain specification
- **Final calculation**: The daily USD values of all bribe types are summed by chain, then the token_incentives field is renamed to expenses to reflect the business interpretation of these payments as operating costs. A fill-zeros strategy ensures continuous daily coverage, and chain availability filtering removes data for unsupported chain-date combinations

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

Total project operating and incentive expenses.

Abracadabra.moneySPELL

Expenses

Expenses

Competitive landscape

Chain breakdown