You can start by referring to David’s Medium article on how to use Abracadabra in addition to the basic explanations below.

How to Borrow MIM

If you have staked OHM on Olympus, you can borrow MIM against your sOHM.
1. Connect your wallet and go to Abracadabra.money Pool 10.
2. Under the "WRAP" menu, wrap the amount of sOHM against which you want to borrow to wsOHM.
3. Go to the "BORROW" menu. Type the amount of wsOHM that you want to use as collateral and type the amount of MIM you want to borrow.
4. Click "ADD COLLATERAL AND BORROW" and sign the transaction. When the transaction is processed successfully, the borrowed MIM amount will appear in your wallet.
If this is your first interaction with the App, you need to approve the Abracadabra's contract to spend your token first. However, you only need to perform this once - subsequent wrapping or borrowing process doesn't require the token approval step.

How to Leverage

Make sure you understand how leverage works in this article from Abracadabra.
1. Click on "Change leverage" and choose a loop amount.
2. Depending on the loop amount (ranges between 1 to 10), your borrow amount, leverage, and liquidation price will be updated accordingly.
Liquidation price increases with loop amount, and a higher liquidation price means you can get liquidated more easily.
3. You can adjust the "Swap Tolerance". A lower value means your transaction is more likely to fail e.g. when the exchange rate of MIM token changes during the execution of your transaction.
4. To use a lower gas fee, click on "Update price". Then click "ADD COLLATERAL AND BORROW" and sign the transaction to open a leverage position.
5. Unlike a normal borrow, you will not get any MIM tokens in your wallet from this transaction because they are swapped for more wsOHM in the background.
You can add more collateral before the collateral price reaches the liquidation price. When you use leverage, you will forfeit all your collateral if you get liquidated.
Last modified 1mo ago