What is Spell Token?

SPELL is a popular altcoin among investors. However, before you Trade Spell, it is vital that you understand what you are investing in. Let's find out what's SPELL and how it functions.

Spell Token (SPELL) is a reward token for usage on the abracadabra.money lending platform, which accepts interest-bearing tokens (ibTKNs) as collateral for loans of Magic Internet Money (MIM), a USD-pegged stablecoin. Abracadabra employs SushiSwap's (SUSHI) groundbreaking Kashi Loan Technology to create private lending markets where borrowers may tailor their exposure to risk in relation to the value of the collateral they offer. Customers can put up collateral in the form of MIM and borrow against it.

With Abracadabra, users may stake their liquidity provider (LP) tokens to farm SPELL and reap the rewards of yield farming. Some cryptocurrency pairings, such as Ether (ETH) and Spell Token (SPELL) and Magic Internet Money (MIM), and LP 3pool Curve, benefit from this increased liquidity (3CRV). It also allows users to borrow MIM from interest-bearing collateral and utilize it to create leveraged agricultural positions.

How is Spell token different?

With the help of SushiSwap and its Kashi Loan Technology, the formerly insular Abracadabra lending markets have become fertile ground for new developments in the field of decentralized finance (DeFi). The risk is not shared collectively in an isolated loan market. Users may serve as market makers for any token, and if a particular currency pair loses liquidity or the smart contract fails, it will only affect that pair and not the platform as a whole. As a result, Abracadabra is able to provide a wide range of pairings that are not available on the vast majority of decentralized exchanges (DEXs).

Token holders who employ this technology have the ability to earn interest on their holdings. In order to increase their leverage, users can borrow stablecoin, use it to leverage their existing positions, and then borrow again against the borrowed stablecoin. For this reason, the user only has to pay the gas fee once, as everything is handled in a single transaction.

It is possible to farm Spell Token (SPELL) by contributing to the liquidity of one of the pools. A portion of the platform fees (interest, borrowing fees, and 10% of the liquidation charge for some markets) are distributed proportionally to staked SPELL, which automatically compounds.

How many SPELL tokens are there?

Spell Tokens (SPELL) have a 961 billion total supply.

The token distribution is as follows:

Incentives for farming over the world account for 63%

Allocation to teams, 30% (4 year vesting schedule)

Initial DEX offering of 7%

SPELL will use a ten-year halving model, which will cut the rewards provided each year in half. In the first year, 50% of team tokens will be granted; in the second year, 25%; and in the third and fourth years 12.5%. A total of 624,000,000 SPELL are released every week. SPELL is also utilised as a governance token, with users having voting power based on how much they have invested.

Network security

Abracadabra is a multichain system, hence Spell Token (SPELL) is accessible on Ethereum (ETH), Avalanche (AVAX), Fantom (FTM), and Arbitrum.

Ethereum is one of the most popular blockchains and the go-to option for many decentralized application (DApp) developers. Ethereum uses a network of nodes to confirm transactions and provide security, and its consensus mechanism is called Proof of Stake.

Avalanche is not a proof-of-work (PoW) or proof-of-stake (PoS) system; instead, it employs a directed acyclic graph (DAG) protocol in which all nodes participate in processing and validating transactions.

Fantom has its own proprietary consensus mechanism, which enables better capacity, two-second transaction finalization, and security enhancements.

Arbitrum is a layer 2 scaling solution for Ethereum that use optimistic rollups to reduce gas costs and increase transaction speeds.

Founders

Instead of being an official DAO, Abracadabra is governed through a Snapshot page. MIM tokens are minted by a 6/10 multisignature contract signed by the partially pseudonymous individuals listed below:

• Danielesesta – Abracadabra, TIME and ICE
• Squirrel – Abracadabra and ICE
• Poolpi – yearn.finance (YFI)
• Georgiy – Abracadabra and Popsicle Finance (ICE)
• Leo Cheng – Cream Finance (CREAM)
• Michael – Curve DAO Token (CRV)
• 0xmerlin – Abracadabra
• Julien – Stake DAO (SDT)
• C2tp – Convex Finance (CVX)
• Sifu – Wonderland (TIME)

Where can you buy SPELL?

SPELL is available on the licensed cryptocurrency exchange CryptoForce and several other national and international exchanges.

Disclaimer: Cryptocurrencies are highly volatile and subject to market, technical, and regulatory risks. Crypto trading requires one’s own diligence, and Cryptoforce will not be responsible for any losses incurred. Any information provided here should not be regarded as Cryptoforce’s technical or financial advice