Daniele Sestagalli, the creator of the famous Frog Nation collective, has recently announced his comeback and the continuation of Abracadabra Money’s development.
In this article, I’ll go through the recent progress of this project that was in the middle of huge controversies at the beginning of this year.
The main narrative of the November 2021 bull market was DeFi 2.0.
Wonderland, a fork of Olympus DAO developed by Daniele Sestagalli, that paid 5-digit APY rewards to those who staked $TIME, was one of the main beneficiaries of this trend.
DeFi 2.0 projects worked according to the premise that in order to become successful they need to start by bootstrapping liquidity and developing their own treasury.
As Daniele was working on multiple projects at the same time, he decided to form “Frog Nation”, a collective of crypto protocols meant to work together across multiple chains.
At the heart of this ecosystem stayed Abracadabra Money, a lending platform that allowed users to issue $MIM stablecoin against multiple collaterals, including yield-bearing assets.
At its peak, the platform TVL reached $6.4b in January.
But Frog Nation’s success didn’t last too long.
After it was revealed that the Frog Nation’s CFO “Sifu,” was QuadrigaCX Co-Founder – an exchange that left a lot of crypto investors without their money – the collapse of this collective started, sending the tokens prices of Frog Nation’s projects to all-time lows.
Daniele went quiet for a few months, announcing his return recently through a post in his own style.
While we haven’t seen yet too much progress made on the Wonderland project yet, it seems like Abracadabra Money’s development has resumed.
The protocol’s massive success was due to the fact that borrowers were able to deposit yield-bearing assets as collateral. This allowed users to continue to earn a yield on their assets, the yield exceeding the cost of borrowing in most cases.
Recently, the project team announced a collaboration with Umami Finance. The goal of this is to allow the depositors of Umami’s USDC Vault to keep getting the vault rewards, while also being able to borrow $MIM against the collateral deposited in the vault.
More than that, the team also started a partnership with Ribbon Finance, a well-known options protocol, to work on generating passive income for the protocol through selling options using the protocol treasury.
It is unclear what is going to happen with Abracadabra Money in the future. The lies and the abandonment of some of the Frog Nation’s projects led to the loss of the community’s trust. However, Frog Nation will probably be remembered as the most powerful collective of protocols in the 2021 bull market.