SPELL is part of the decentralized finance initiative of Abracadabra.money. In this article, as Kriptokoin.com, “What is Spell?” We will answer the question. In addition, we will touch on other questions about the project.
What is Spell? What does it do?
Spell is a cross-chain stablecoin lending protocol that allows users to use capital they have but cannot use. With Spell, the interest-bearing tokens you earn from staking in the vaults can now be used as collateral for Abracadabra’s USD stablecoin Magic Internet Money (MIM) and can be used for other purposes.
Launched in May 2021, Abracadabra is currently the 6th largest stablecoin in the category by market cap. Abracadabra, a cross-chain lending protocol, allows users to redeem with interest-bearing tokens (e.g. xSUSHI, yvUSDT) earned in vaults. Magic Internet Money (MIM) is Abracadabra’s USD pegged stablecoin backed by interest-bearing tokens. Users deposit their interest-bearing assets as collateral to obtain a loan allocation and interest rate. The MIM tokens are then deposited into the borrower’s wallet. In addition to MIM, SPELL is Abracadabra’s governance token for staking. Token holders can stake their tokens to receive sSPELL.
What is SPELL coin?
SPELL is Abracadabra Money’s governance and service token. Used for Governance (staking), Revenue share (staking), Yield farming.
How does Spell work?
Abracadabra Money provides lending services to investors. However, it uses a different technique than most protocols. The technique, called the “isolated lending market,” was first used with Kashi, a lending platform owned by SushiSwap. By using isolated credit, Abracadabra can successfully leverage the use of interest-bearing tokens. Additionally, it finally allows users to generate Magic Internet Money. There are several steps involved in this process:
1. Users are required to deposit a deposit with Abracadabra.
2. Abracadabra allocates an interest-bearing loan allocation to the borrower.
3. After that, MIM tokens are deposited into the borrower’s wallet at the borrower’s chosen leverage level.
4. Users take their MIM wherever they want. You can exchange or withdraw USDT. They can also repeat the deposit during the year to get yvUSDT and more MIMs.
What is Spell? How to get SPELL coin?
The token is currently traded on numerous cryptocurrency exchanges. People who want to invest in the project should open an account in one of the exchanges where the project is traded. Exchanges where Spell is traded are listed as follows: Binance, OKX, Bybit, FTX. Users who want to invest in the project should open an account on one of these exchanges.
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