Abracadabra Spell

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Abracadabra Spell tracks collateral locked in isolated Cauldrons across seven nonzero chains, not a MIM liquidity-pool position. Users deposit a market-specific collateral asset and may borrow MIM or atomically leverage by swapping borrowed MIM into more collateral; oracles, market parameters, interest and liquidations govern each claim. DefiLlama measured about $3.92M on 2026-08-16, including $2.05M on Ethereum and $1.71M on Arbitrum. No one passive yield claim spans the aggregate, and at 3.92% of the $100M floor the version-1 below-materiality dossier is the defensible shared disposition.

Kill criteria: the events that revoke this verdict
• Collateral TVL sustained above $100M for 30 days
• Selects one exact Cauldron and supplies verified version, authority, oracle, debt, liquidation, incident and $1M repay-and-withdraw evidence

The research file

Mechanism and scope correction

Abracadabra documents Cauldrons as isolated lending markets where a user locks collateral to borrow MIM. Leverage is optional and distinct: borrowed MIM is swapped into more collateral and redeposited. The adapter enumerates collateral tokens and BentoBox or DegenBox balances per Cauldron; it does not read AMM reserves or LP tokens. The former amm-lp basis and Ethereum-only perimeter were therefore false for this surveyed record.

Current accounting and chain perimeter

The 2026-08-16 API showed $3.92M of collateral across Avalanche, Blast, BSC, Ethereum, Fantom, Arbitrum and Kava; Optimism was configured but zero and is excluded from the current nonzero perimeter. TVL is collateral locked, not MIM available, MIM borrowed or withdrawable cash. An advised position would have to name one exact Cauldron, collateral and debt state rather than treating the aggregate protocol balance as executable liquidity.

Control, loss and lifecycle applicability

Cauldron owners or authorized operators can change borrow limits and interest, deprecate markets, reduce MIM supply and configure fee or blacklist controls depending on version. Each market depends on its collateral oracle, minimum collateral ratio and liquidation path. The adapter records UST, 0xSifu and FTX-related hallmarks, while current documentation and the multi-chain adapter demonstrate an active but heterogeneous protocol rather than one historic LP pool.

Comparison and measurable reopening test

Unlike supplying USDC to a named Aave reserve, depositing collateral in a Cauldron does not itself create a passive lender claim; the client retains collateral risk and may add MIM debt or recursive leverage. Below-materiality controls because no stronger shared class accurately covers every Cauldron and only $3.92M is observed. Reopen after supplied collateral remains above $100M for 30 days, then select one market and verify contract version, roles, oracle, debt, liquidation, incidents and a $1M repay-and-withdraw simulation.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Abracadabra Docs — Cauldron lending and leverage · primary · accessed 2026-08-16
  Supports: isolated market, collateral, MIM borrowing, optional leverage, liquidation
• Abracadabra Docs — borrow, repay and close flow · primary · accessed 2026-08-16
  Supports: market selection, LTV and MCR, MIM debt, repay, collateral withdrawal
• Abracadabra Developer Docs — architecture and authorities · primary · accessed 2026-08-16
  Supports: DegenBox, Cauldron clones, oracles, CauldronOwner operators, multi-chain fees
• Abracadabra Developer Docs — Cauldron V4 controls · primary · accessed 2026-08-16
  Supports: liquidation, owner fee controls, blacklisted callees, supply reduction
• DefiLlama adapter — Abracadabra collateral accounting · secondary · accessed 2026-08-16
  Supports: Cauldron collateral, BentoBox balances, configured chains, hallmarks, not LP accounting
• DefiLlama — Abracadabra Spell survey record · secondary · accessed 2026-08-16
  Supports: $3.92M TVL, seven nonzero chains, CDP category, current lifecycle

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.