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 Fees Methodology

## 1. Overview

The Abracadabra fees metric measures the total revenue generated by the Abracadabra protocol across its lending markets and cross-chain bridge operations. This metric captures four distinct fee types: borrowing fees charged when users borrow MIM stablecoin against collateral, interest accruals from outstanding loans, and fees from the protocol's Beam cross-chain bridge infrastructure (both v1 and v2). The calculation combines fees from multiple blockchain networks and converts them to USD for a unified revenue measurement.

## 2. Data sources

The calculation relies on several blockchain and external data sources:
- **Blockchain events**: Parsed `LogBorrow` and `LogAccrue` events from Cauldron lending contracts across Ethereum, Arbitrum, Avalanche, BSC, and Fantom
- **Cross-chain data**: Parsed `SendToChain` events from LayerZero bridge contracts (LzProxyOFTV2 and LzIndirectOFTV2) and `LogFeeCollected` events from LzOFTV2FeeHandler contracts
- **Transaction data**: Native token flow records by account for multiple chains, used to track beam fee collections
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal corrections
- **Configuration data**: Hardcoded pool configurations including fee tiers and beam contract addresses

## 3. Step-by-step calculation

### Component A: Borrowing fees
- **Purpose**: Calculates fees collected when users borrow MIM stablecoin from Cauldron lending pools
- **Logic**: Extract `LogBorrow` events from Cauldron contracts across Ethereum, Arbitrum, Avalanche, BSC, and Fantom. Each event contains the raw borrow `amount` in MIM tokens. Join with pool configuration data to retrieve the pool-specific `borrow_fee_tier` (ranging from 0% to 1%). Multiply the borrow amount by the fee tier to calculate the actual fee collected by the protocol. All borrowing fees are denominated in MIM token and assigned to Ethereum chain for price conversion accuracy while preserving the original chain in `real_chain`
- **Key fields**: `amount` (raw borrow amount), `borrow_fee_tier` (pool-specific fee percentage), `pool_address` (lending pool identifier)

### Component B: Interest accruals
- **Purpose**: Captures accrued interest collected as protocol revenue from outstanding loans
- **Logic**: Extract `LogAccrue` events from the same Cauldron contracts across five chains. These events contain `accruedAmount` values representing interest that has accrued on outstanding loans. Unlike borrowing fees, use the accrued amount directly without applying additional fee multipliers. All interest fees are denominated in MIM token and assigned to Ethereum chain for price conversion
- **Key fields**: `accruedAmount` (interest amount accrued), `pool_address` (lending pool identifier)

### Component C: Beam v1 fees
- **Purpose**: Tracks fees collected from the protocol's v1 cross-chain bridge operations
- **Logic**: Query native token flow data for specific beam contract addresses (primarily `0x287176dfbec7e8cee0f876fc7b52960ee1784adc`) across Ethereum, BSC, Fantom, Arbitrum, Avalanche, and Polygon. Filter these flows using a transaction allowlist derived from `SendToChain` events from LayerZero bridge contracts. Only include flows where the transaction hash matches transactions that triggered cross-chain bridge operations. This ensures only legitimate beam fees are captured rather than all transfers to these addresses
- **Key fields**: `value` (native token amount), `transaction_hash` (for allowlist filtering), `token_address` (native token identifier)

### Component D: Beam v2 fees
- **Purpose**: Captures fees from the upgraded v2 cross-chain bridge infrastructure
- **Logic**: Extract `LogFeeCollected` events directly from LzOFTV2FeeHandler contracts on Base chain. These events contain the `amount` of fees collected in WETH tokens. No additional filtering or multiplication required as these events represent actual fee collection
- **Key fields**: `amount` (fee amount in WETH), `token_address` (WETH address on Base)

### Final aggregation
- **Combining components**: Union all four fee components with consistent schema including timestamp, chain assignment, business classification, and token information. Apply daily timestamp truncation to align all fees to day boundaries
- **Currency conversion**: Convert all fee amounts to USD using end-of-day price feeds matched by token address and date. Apply decimal corrections based on token metadata to ensure proper unit conversion
- **Time aggregation**: Group by day, chain, and business classification. Sum all fee amounts for each group
- **Final calculation**: Apply zero-filling strategy to ensure continuous daily time series. Use chain availability filtering to exclude periods where data sources were not available for specific chains

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Abracadabra.moneySPELL

Fees

Fees

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