Investing in Spell Token (SPELL) – Everything you need to know

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While most people who are not into crypto see the industry as an incredibly complex thing, those who have spent time inside understand that there are varying levels of complexity. For example, Bitcoin (BTC) is quite simple, as it just makes payments, and that’s it. On the other hand, tokens like Ethereum are much more complex, in terms of ecosystem and use cases.

And then there are tokens like the Spell Token (SPELL), which is a mid-size cog in a much larger machine, but also has been crucial to the operation of the whole system. You see, SPELL is a token in the system of a decentralized lending platform called Abracadabra.Money.

It’s also an ERC-20 token that runs on the Ethereum network, and within the Abracadabra.Money ecosystem, it’s just one of multiple tokens and token types that play all an important role. Today we were interested in seeing the role of SPELL in the ecosystem, if it solves certain problems, and if so, which ones, and what are the benefits of interacting with it.

What problems does Spell Token (SPELL) solve?

SPELL is not exactly a type of token intended to solve problems in the crypto industry or the real world. However, it plays an important role in the Abracadabra.Money system, where it helps in two ways:

He helped revolutionize lending

On the Abracadabra.Money platform, Spell Token functions as a reward token. The platform allows users to deposit collateral and borrow Magic Internet Money (MIM), engage in yield farming, staking, etc., to cultivate SPELL. All of this facilitates better liquidity for certain crypto pairs, such as ETH/SPELL, as well as MIM/3CRV.

Provide incentives

Speaking of offering rewards, this is one of the main goals of the SPELL token in the ecosystem. By offering incentives to users, the project secures their support and loyalty, which in turn ensures its price stability and growth potential.

Benefits of Spell Token (SPELL)

Although SPELL was not created with problem solving in mind, it was designed to provide a number of benefits to users of the project, to ensure that they will develop a relationship stable with the whole project. With that in mind, here’s what you get if you decide to join the Abracadabra.Money platform.

Liquidity rewards

We have already mentioned that SPELL is used to offer liquidity rewards to users who want to farm SPELL. Essentially, the process is similar to providing regular liquidity in any other ecosystem. All users need to do is lock up their tokens in liquidity pools for the project to have them at its disposal and quickly process transactions when needed. In return, users are paid in SPELL, which provides passive income.

Staking

Staking works the same as elsewhere. In fact, staking has become one of the most popular activities in the DeFi industry, which isn’t surprising given what’s involved. Users simply lock their tokens and receive rewards, which removes the risks associated with other crypto activities, such as trading. In fact, staking has become especially popular with long-term investors, or HODLers, as they’re also known. Not only can they keep their tokens and keep them for months or even years waiting for the price of the token to increase, but they also get new tokens as a reward. As a result, their total number of tokens increases without them having to buy them and spend their own money.

Other uses

Protocol-generated fees are one of the two main use cases for SPELL. Abracadabra uses interest-bearing cryptocurrencies such as CRV, CVX, and YFI. These tokens can be provided to the platform as collateral to mint MIM, which is a USD pegged stablecoin. Meanwhile, the SPELL token is distributed in the form of farming incentives, team allocation, and even during IDOs (Initial DEX Offerings), where users must use the token to invest in new tokens that are sold.

Governance

Finally, there is the issue of governance to discuss, which is another of the two main use cases for the SPELL token. Since the project is fully decentralized, it is its community of token holders that makes the decisions that will impact the future of the project. They can either submit proposals for new upgrades, features, changes, etc., or vote on proposals submitted by others to give their own opinion.

How does Spell Token (SPELL) work?

Spell Token (SPELL) is a reward token created and used by a decentralized lending platform Abracadabra.Money. The platform uses interest-bearing tokens, or ibTKN (such as CRV, YFI, CVX) to offer collateral for borrowing another token called Magic Internet Money (MIM). MIM is a stablecoin pegged to the US dollar. So in a way it’s not too different from DAI.

However, if users contribute to the project by engaging in one or more of the many opportunities offered, such as yield farming, providing liquidity, etc., they receive SPELL token rewards.

With SPELL, they can also participate in the governance of the project, or just stick with earning rewards and slowly growing their wealth through a combination of HODLing and passive income.

It’s also worth noting that Abracadabra uses Kashi lending technology, created by another project, SushiSwap. This has allowed it to bring many innovations to DeFi lending, such as isolating the lending market, so that risks are not shared across the entire ecosystem. For example, if the liquidity of a specific pair runs out, only that pair will suffer, while the others will continue to operate as usual.

How to buy a spell token (SPELL)

Currently, Spell Token (SPELL) is available for purchase on the following exchanges.

Hold – This is one of the best trades for US and UK residents which offers a wide range of cryptocurrencies. Germany and the Netherlands are prohibited.

Binance- Ideal for Australia, Canada, Singapore, UK and most of the world. US residents are prohibited to buy Spell Token (SPELL). Use the discount code: EE59L0QP for 10% cashback on all trading fees.

Gate.io – This exchange was established in 2013 and is one of the most popular and reputable exchanges. Gate.io currently accepts US residents (excluding New York and Washington State).

Huobi Global – Founded in 2013, Huobi Global has since become one of the largest digital asset exchanges in the world, with a cumulative trading volume of US$1 trillion. It should be noted that Huobi Global currently does not accept residents of the United States or Canada.

WazirX – This exchange is part of the Binance group, which guarantees a high level of quality. This is the best exchange for people of india.

Coinbase – A publicly traded exchange listed on NASDAQ. Coinbase accepts residents of over 100 countries, including Australia, Canada, Singapore, UK & the United States (excluding Hawaii).

Spell Token (SPELL) – Abracadabra’s governance and rewards token

Spell Token is not a token meant to change the world, but it is a token meant to encourage users to take on a project that tries to improve decentralized lending. Additionally, those who include it in their wallet also open the doors to many of the benefits of its native ecosystem, which is quite rewarding on its own, which is why we believe the token has a bright future as a crypto- reward currency.

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