Spell Token (SPELL) — a reward token, associated with a lending platform that uses interest-bearing tokens (ibTKN) as collateral to borrow a USD-pegged stablecoin, called Magic Internet Money (MIM).
Contents:
- General information about Spell Token (SPELL)
- Platform uniqueness
- About the token
- Spell Token security (SPELL)
General information about Spell Token (SPELL)
The Abracadabra project uses Kashi Lending Technology, pioneered by SushiSwap (SUSHI), to provide isolated lending markets that allow users to adjust their risk tolerance to the collateral they choose to use. Users can post a deposit and take a MIM loan against it. Abracadabra also offers crop farming opportunities where users can stake their liquidity provider (LP) tokens to farm SPELL.
This contributes to better liquidity for some cryptocurrency pairs, currently Ether (ETH)-SPELL token (SPELL) and Magic Internet Money (MIM)-LP 3pool Curve (3CRV). In addition, users can also open leveraged farming positions, using leveraged MIMs from their interest-bearing collateral.
Abracadabra is not an official Decentralized Autonomous Organization (DAO) but is managed through a Snapshot page. MIMs are minted through a 6/10 multi-signature contract, consisting of the following partially pseudonymous users:
- Poolpi — yearn.finance (YFI);
- Leo Sheng - Cream Finance (CREAM);
- Michael — Curve DAO Token (CRV);
- Julien - Stake DAO (SDT);
- C2tp — Convex Finance (CVX);
- George — Abracadabra and Popsicle Finance (ICE);
- 0xmerlin - Abracadabra;
Platform uniqueness
In an isolated lending market, risk is not shared collectively. Users can provide liquidity for any token, and if a currency pair loses its liquidity or something happens to a smart contract, only that pair is affected, not the entire platform. This allows Abracadabra to offer various pairs that are not supported by most other decentralized exchanges (DEXs).
Useful features:
| Market | Abracadabra isolated lending markets, with Kashi Lending technology, developed by SushiSwap. |
| Interest | Users can use their percentage positions of tokens. |
SPELL can be obtained by providing liquidity in one of the various pools. SPELL can also be staked, and staking coins are charged a share of the platform's fees (interest, borrowing fees and 10% of the liquidation fee for certain markets) that add up automatically.
About the token
The total number of Spell Tokens (SPELL) - 210 billion. The distribution of tokens is as follows:
- 63% (132.3B SPELL): global farm incentives
- 30% (63.0B SPELL): distribution for the team
- 7% (14.7B SPELL): initial DEX offer
The platform will follow a ten-year halving model that will halve the rewards, distributed each year. 50% of the team's tokens must be issued in the first year, 25% in the second and 12.5% in the third and fourth years. 624 million Spells are emitted every week.
SPELL token is available on:
- FTX;
- SushiSwap;
- Gate.io;
SPELL is also used as a governance token with users, having voting rights, based on how much they staked.
Spell Token security (SPELL)
Abracadabra — a multi-chain protocol, so the Spell (SPELL) token is available on Ethereum (ETH), Avalanche (AVAX), Fantom (FTM) and Arbitrum. Ethereum is one of the most popular blockchains and is an ideal solution for many decentralized application (DApp) developers. A set of nodes verify transactions and secure the Ethereum blockchain, and the network is in the process of transitioning from using a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS).