Spell
Abracadabra. Money is a multichain lending protocol that uses interest-bearing assets to generate Magic Internet Money.
Interested tokens that can currently be used as collateral include liquidity provider (LP) tokens from Convex, Curve, and Yearn, among others. The termination of a loan in Abracadabra differs from other stablecoins/lending agreements such as MakerDAO, in that each component of collateralized debt position (CDP) is different and has its own closing value. If the closing price of each CDP is exceeded, the seller can purchase the position by paying any remaining MIM.
The Abracadabra protocol has two major tokens running in its ecosystem. The first is SPELL, the governance token that works on the Ethereum blockchain, and the other is MIM (Magic Internet Money). Among other benefits, the main function of the Spell Token is staking. Like many other tokens that use the Ethereum platform, SPELL can be installed on a stake for various benefits.
Launched in May 2021, Abracadabra took over DeFi Land, and the stablecoin MIM now ranks 7th in the market. Abracadabra, a cross-chain lending protocol, can enable users to use the interest-bearing tokens they have earned on vaults (e.g. xSUSHI, yvUSDT), for greater revenue. Magic Internet Money (MIM), a stablecoin Abracadabra USD supported by interest tokens. Consumers simply deposit their interest-bearing assets on Abracadabra as collateral to obtain credit share and interest rates, and MIM tokens will be settled into the borrower's wallet. In addition to MIM, SPELL is an Abracadabra governance management token. SPELL administrators can file their own tokens to obtain sSPELL, which provides owners with voting rights and payment claims generated by the law.
Abracadabra's isolated mortgage markets have sparked a wave of innovation in decentralized finance (DeFi). In an isolated mortgage market, the risk is shared equally. Users can provide cash with any token and if a currency pair loses its value or something happens to a smart contract, only that pair is affected and not the whole forum. This allows Abracadabra to offer a variety of pairs that are not supported by multiple decentralized exchanges (DEXs).
This provides benefits in the way that users can use their positions of interesting tokens. Users borrow against their positions and then borrow again against stablecoin borrowed, creating various loops and thus increasing their power. All of this is done in a single transaction, which is why the user only pays for gas once.
Spell Tokens (SPELL) can be farmed by donating money to one of the different pools. SPELL may be attached to a stake, and staked tokens accumulate a portion of the field's revenue (interest, borrowing funds, and 10% of closing down certain markets), which is covered automatically.
The use cases of Spell Token are:
· Staking: Users can contribute to SPELL to get sSPELL for a share of the protocol distribution. The proceeds of the protocol are used to fund the purchase of the SPELL token at market price, and then to the parties.
· Liquidity Mining: Users can provide MIM or SPELL in spending pools on DEX such as Curve Finance and Sushiswap to get SPELL and share service payments.
· Governance: Servers will be required to stake SPELL in order to receive sSPELL and to vote on governance proposals.
The total distribution of Spell Token (SPELL) is 210 billion, and 210 billion has been burned after the production of tokens. The distribution of tokens is as follows:
63% (132.3B SPELL): Global Farming Incentives
30% (63B SPELL): Team Allocation (4 year Vesting Schedule)
7% (14.7B SPELL): Initial DEX Offering
DATE | NEWS/EVENTS | IMPACT |
29/01/2022 | OxSifu, the CFO of its merger project Wonderland, hid a dark secret from Spell | -29% Decrease |
21/01/2022 | The value of Spell Token has plummeted drastically due to a major scandal around Frog Nation | -55% Decrease |
16/12/2021 | Spell token gets listed on Crypto.com | +62% Increase |
25/09/2021 | Abracadabra has announced a partnership with the decentralized reserve currency protocol Olympus (OHM) and officially launched the sSPELL lending market | +116% Increase |
Abracadabra is a project aspiring to build a high-quality product that seeks to fill what seems to be a real gap in the corner of market performance and stable coin for fixed investments. The amazing speed with which the project is growing indicates that Abracadabra has achieved market equity for the product. The final battle of DeFi, is open, divided by the world, and has just begun.
