abracadabra, or Abra, had a tumultuous start to the year. However, the developers are now showing that they can shrug off the volatility. Specifically, the DeFi platform is assembling a set of catalysts for its magic (MAGIC USD) Sign. Those announcements are now culminating in a major partnership that will provide the network with a massive real-world use case. Will a Real Estate Partnership Help Boost SPELL Crypto Values Long-Term?
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Of course, we can’t talk about a rebound for Abracadabra without warming up again, which caused it to have a starting problem. Back in January, Abra was in an uproar thanks to its relationship with the DeFi platform wonderland.
The two platforms – which developers share and exist under the same frog nation Conglomerate – saw interest from developers and users alike avalanche (AVAX USD) developer Daniele Sestagalli proposed a merger. This proposal attracted immediate interest. However, just a day later, one of Wonderland’s executives was exposed as a crypto scammer. The Executive had attended the QuadrigaCX Stock market scandal, a DeFi scam so notorious it has its own Netflix (NASDAQ:NFLX) documentary.
This news brought both projects to collapse. It even went down Magic internet money (MIM USD), Abras native $1.00 USD-pegged stablecoin. SPELL, a reward token for users who farm liquidity on Abra, has also been messed up.
This isn’t Abra’s fault himself, of course. The platform was only crammed because of an unfortunate association. While the developers fixed much of the MIM volatility and stabilized SPELL prices with a public statement, the project has still been digging itself out of a hole since.
SPELL Crypto looks to bounce back with Propy partnership
However, those tough times could be reflected in the rearview mirror this week. That’s because Abra is launching a series of new offerings designed to lead users to the SPELL crypto. In particular, the platform leans towards the non-fungible token (NFT) market and launches new yield farming opportunities. But perhaps most interesting is the newly announced partnership with Property (PRO USD), a blockchain real estate company that helps users buy real estate with crypto loans.
This morning, the two platforms announced a collaboration that will allow users to get home loans by collateralizing their crypto assets. Propy users can use Abra’s lending platform to pledge assets. They can then use their collateral to borrow USD to buy homes. The Propy blockchain automatically processes these transactions and permanently records them on the chain. According to Propy, users can pledge both crypto and NFTs as collateral.
This partnership, among other announcements, is a welcome addition to the Abra network. Recently, the developers have also introduced modifications to their “kettles”, which are vehicles that allow users to collateralize assets in exchange for MIM. Things like borrowing limits help bring crypto loans to more users; This is because limits prevent a few addresses from dominating Kessel by lending massive amounts of MIM. The platform has also launched AbraNFT, a peer-to-peer lending market that allows NFT holders to lend their tokens to others who can then earn income from them.
All of these new products help expand the use cases of the network significantly. But the Propy partnership is particularly interesting. Abra thus joins an exclusive club of platforms that offer real estate loans via crypto. Accordingly, both MIM and SPELL can be expected to increase in volume as new users come into the space.
At the time of publication Brenden Rearick held (neither directly nor indirectly) positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.
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