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Summary of Spell Token (SPELL)
Key Points
- Spell Token (SPELL) is a reward token associated with Abracadabra.money, a lending platform.
- Abracadabra uses Kashi Lending Technology to provide isolated lending markets.
- Users can deposit collateral and borrow Magic Internet Money (MIM) against it.
- SPELL can be farmed by providing liquidity in different pools and staked to accrue platform fees.
Founders and Governance
- Abracadabra is governed through a Snapshot page.
- MIM is minted through a 6/10 multisignature contract composed of 10 partially pseudonymous users.
Introducing Spell Token: Unlocking the Power of Decentralized Finance
Introducing Spell Token (SPELL): A Comprehensive Overview
Spell Token (SPELL) is the reward token affiliated with abracadabra.money, a pioneering lending platform that leverages interest-bearing tokens (ibTKNs) as collateral to borrow Magic Internet Money (MIM), a USD-pegged stablecoin. By harnessing the innovative Kashi Lending Technology pioneered by SushiSwap (SUSHI), Abracadabra creates isolated lending markets that empower users to calibrate their risk tolerance according to the collateral they choose to utilize. Users can deposit collateral and borrow MIM against it, thereby unlocking access to a range of financial opportunities. Additionally, Abracadabra offers lucrative yield farming opportunities, where users can stake their liquidity provider (LP) tokens to farm SPELL, thereby facilitating enhanced liquidity for select cryptocurrency pairs, including Ether (ETH)-Spell Token (SPELL) and Magic Internet Money (MIM)-LP 3pool Curve (3CRV). Furthermore, users can also establish leveraged farming positions by utilizing borrowed MIM from their interest-bearing collateral, thereby amplifying their potential returns.
The Visionaries Behind Spell Token: Meet the Founders
Abracadabra is not a formally recognized decentralized autonomous organization (DAO), instead, it operates under the auspices of a Snapshot page. The minting of MIM is facilitated through a 6/10 multisignature contract, comprising a consortium of partially pseudonymous users:
- Poolpi – Yearn.finance (YFI)
- Leo Cheng – Cream Finance (CREAM)
- Michael – Curve DAO Token (CRV)
- Julien – Stake DAO (SDT)
- C2tp – Convex Finance (CVX)
- Sifu – Wonderland (TIME)
- Georgiy – Abracadabra and Popsicle Finance (MAGIC, ICE)
- 0xmerlin – Abracadabra
- Danielesesta – Abracadabra, Wonderland, and Popsicle Finance (TIME, ICE)
- Squirrel – Abracadabra and Popsicle Finance (ICE)
Unveiling the Uniqueness of Spell Token
Thanks to the pioneering Kashi Lending Technology introduced by SushiSwap, Abracadabra’s innovative isolated lending markets have triggered a paradigm shift in decentralized finance (DeFi) lending. Notably, in an isolated lending market, risk is not collectively shared. Users are empowered to provide liquidity for any token, and in the event that the currency pair loses its liquidity or an issue arises with the smart contract, only that specific pair is affected, without compromising the entire platform. This unique approach enables Abracadabra to offer a diverse range of pairs that are not typically supported by most other decentralized exchanges (DEXs).
One of the key advantages of utilizing this technology is that users can capitalize on their interest-bearing token positions. By borrowing against their initial positions and subsequently borrowing against the borrowed stablecoin, users can create multiple loops, thereby amplifying their leverage. Notably, this entire process is facilitated in a single transaction, resulting in a single gas fee payment.
Spell Token (SPELL) can be cultivated through liquidity provision in various pools. Additionally, SPELL can be staked, and staked tokens earn a proportion of the platform’s fees, including interest, borrowing fees, and 10% of the liquidation fee for select markets, which are automatically compounded.
What Is the Circulating Supply of Spell Token (SPELL) Coins?
The total supply of Spell Token (SPELL) is capped at 210 billion, with a significant portion of 210 billion tokens having been removed from circulation through a token burn event following the initial token generation. The token distribution is allocated as follows:
- 63% (132.3 billion SPELL): Global farming incentives, fostering a robust ecosystem
- 30% (63.0 billion SPELL): Team allocation, subject to a 4-year vesting schedule, ensuring a committed and dedicated team
- 7% (14.7 billion SPELL): Initial DEX offering, providing a seamless and efficient token distribution
SPELL will adhere to a decennial halving model, wherein the rewards distributed will be slashed by half annually. The token allocation is structured as follows: 50% of the team’s tokens will be issued in the inaugural year, 25% in the second, and 12.5% in both the third and fourth years. On a weekly basis, 624 million SPELL tokens are emitted. Furthermore, SPELL serves as a governance token, empowering users with voting power commensurate with the amount they have staked.
The Spell Token Network’s Robust Security Mechanisms
Abracadabra is a multichain protocol, with its native Spell Token (SPELL) seamlessly accessible across a diverse range of blockchain ecosystems, including Ethereum (ETH), Avalanche (AVAX), Fantom (FTM), and Arbitrum.
Ethereum stands as one of the most prominent blockchains, serving as the preferred platform for numerous decentralized application (DApp) developers. A network of nodes collaborates to validate transactions and ensure the integrity of the Ethereum blockchain, which is currently undergoing a significant transformation from a proof-of-work (PoW) consensus mechanism to a more efficient proof-of-stake (PoS) model.
In contrast to PoS or PoW, Avalanche employs a directed acyclic graph (DAG) protocol, wherein all nodes collectively process and validate transactions in a decentralized manner.
Fantom employs a proprietary consensus mechanism, enabling the network to achieve higher capacity while facilitating two-second transaction finalization, all while bolstering security.
Arbitrum is a cutting-edge layer two scaling solution for Ethereum, leveraging optimistic rollups to deliver accelerated transaction processing and virtually negligible gas fees.
Will Spell Token Soar to $1?
Despite Spell Token (SPELL) having maintained a persistent upward trajectory and boasting an impressive market capitalization of nearly $2 billion, its colossal total supply makes it improbable that it will ever breach the $1 mark. However, if the community were to reduce the total supply of SPELL through burning and Abracadabra were to integrate with a broader range of protocols, SPELL could potentially sustain its upward momentum and scale new all-time highs in the future.
Acquiring Spell Token (SPELL): A Comprehensive Guide to Exchanges and Marketplaces
The Spell Token (SPELL) has successfully listed on prominent cryptocurrency exchanges, including SushiSwap and Gate.io, further expanding its market presence.
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