Spell Token (SPELL) is the governance token of Abracadabra.money, a platform that allows users to deposit interest-bearing crypto assets (such as yvYFI, yvUSDT, yvUSDC, xSUSHI) as collateral.
What is Spell Token (SPELL)?
Abracadabra is a multi-chain lending protocol that uses interest-bearing tokens as collateral to mint a USD-pegged stablecoin called Magic Internet Money (MIM). SPELL is the governance token that can be staked to earn revenue from the protocol.
There are two main tokens operating within the Abracadabra protocol ecosystem. The first is SPELL, the platform’s governance token, and the other is MIM (Magic Internet Money). Among other benefits, the primary function of the Spell Token is staking. Like many other tokens using the Ethereum platform, SPELL can be staked to gain various advantages. Two of these are:
- Governance: Because the Abracadabra protocol is truly decentralized, the number of Spell tokens you own will determine the weight of your voting rights on changing features such as transaction fees, collateral, and total value locked (TVL).
- Passive Income: When Spell Token is staked, users earn a percentage of the transaction fees from the platform. These fees primarily come from the interest earned from users borrowing MIM. 75% of the fee goes to token holders; 20% is allocated to the management treasury to aid liquidity pools, and the remaining 5% is held in a multisig treasury to help mitigate risks during adverse market conditions.
Abracadabra Money uses a different technique from most protocols to provide lending services to investors. The technique, called “isolated lending market,” was first used by Kashi, a lending platform belonging to SushiSwap. By using isolated lending, Abracadabra can successfully leverage the use of interest-bearing tokens and ultimately allow users to generate Magic Internet Money.
How to Buy Spell Token
SPELL Coin can be bought quickly and securely through Binance, the world’s largest cryptocurrency trading platform by trading volume.
To purchase SPELL Coin, you must first become a member of Binance and then send fiat currency. After sending fiat currency like dollars, you can buy Bitcoin (BTC), BUSD, or Tether (USDT), which SPELL Coin is traded against, and then make a purchase in the SPELL trading pair.
Additionally, users can place a buy order at a lower price on Binance to purchase at their desired price. For this, use the Limit tab and enter the amount you want to buy and the price you want to pay.
