Spellie Spell token is an Ethereum governance token associated with Abracadabra.money, a lending platform. It allows customers to deposit collateral as interest-bearing tokens to mint a USD-pegged stablecoin MIM (Magic Internet Money).
The platform aims to optimize the portfolio of a customer who wants to earn passively from cash flow-generating assets. Abracadabra uses Kashi lending technology pioneered by Sushi Swap (SUSHI) to provide a decentralized marketplace. It allows customers to adjust their risk tolerance according to the collateral they decide to use.
Spellie also offers abundant farming opportunities where customers can invest their Liquidity Provider(LP) tokens in the form of SPELL. It facilitates better liquidity for a specific cryptocurrency and allows users to open leveraged farming positions using MIM borrowed from their interest-bearing collateral.
Founders of Spell Token | Spellie
Abracadabra is not an official Decentralized Autonomous Organization (DAO), but instead, a snapshot page to govern it. Besides, MIM came into existence through a multi-signature contract consisting of partially pseudonymous users, including Poolpie, Leo Cheng, Michael, Julien, C2tp, Sifu, Georgiy, Oxmerlin, Danielesesta, and Squirrel.
What Makes Spellie Token Unique?
Thanks to the Kashi lending technology, the isolated lending markets of Abracadabra have flashed a wave of innovation in Defi lending. Customers can offer liquidity for any token, but if a currency pair loses its liquidity, only that pair affects instead of the entire platform. It allows Abracadabra to provide different teams without the support of other decentralized exchanges.
A convincing feature of this technology is that users can leverage their interest-bearing token positions by borrowing against their works and borrowing stablecoin, creating several loops. A transaction performs all this process, and because of this, the customer pays only the gas fee.
You can farm SPELL tokens by offering liquidity in various pools. You can also stake SPELL tokens and earn a share of platform fees, which auto-compound.
How is the Network Secured? | Spellie
Abracadabra is a multichain protocol with SPELL and is available on Ethereum, Avalanche, Fantom, and Arbitron.
First, Ethereum is the most popular blockchain and the go-to solution for various decentralized application developers. A set of nodes validates transactions and ensures the Ethereum blockchain and the network in this transitioning process is a Proof-of-work (Pof) consensus mechanism to PoS (Proof of Stake).
Second, Avalanche utilizes a Directed Acyclic Graph (DAG) protocol, where all nodes process and validate transactions. Third, Fantom uses its consensus mechanism, which enables high capacity and two-second transaction finalization, along with improved security.
Arbitrum is a layer-two scaling solution for Ethereum that utilizes optimistic rollups to get faster transactions near zero gas fees.
After the token generation event in May 2021, half of the Spellie burned, reducing the coin supply from 400 to 210 Billion. The current maximum collection is up to 196 billion of the original 420 billion. These burn-targeting non-circulating coins did not affect trading value positively.
The current circulation formation is 97.61 billion, which increases weekly by a rate of 911.5 million tokens. The figure objects to change, contingent on governance proposals. You can obtain SPELL as farming incentives on Abracadabra.money Defi platform and Binance Coinbase FTX also hold SPELL liquidity.
Also Read: Cortex BlockChain | ZkMatrics Overview
How does SPELL Token Work?
SPELL is the native token of Abracadabra that works with Ethereum Blockchain and other networks, including Fantom and Avalanche, through Anyswap. It serves as governance within the Abracadabra Money ecosystem with the primary use cases, including management and fees earned from the protocol.
SPELL holders can stake their tokens to earn SPELL, which provides them with voting rights and passive income from fees generated by protocols. SPELL tokens represent shares of customers of the SPELL fee pools with a mechanism similar to the SUSHI model, where holders hardcode the 10% of liquidation fees and use them to purchase tokens in specific markets.
Also, Read AVA TA Network a Landing Protocols
What is SPELL Token Used for?
The primary use of the SPELL token is for the liquidity mining programs to deepen it in the Abracadabra lending markets, with 63% of SPELL allocated for this purpose. Various lending pools have diverse SPELL emissions levels of writing in the exact time, and it is easy to write 665,448,024 spells per week.
In addition, SPELL owners can stake their tokens to achieve SPELL, representing the user’s SPELL fee pool.