SPELL Token is the main cryptocurrency of the Abracadabra platform, which offers decentralized finance lending. The token’s symbol is SPELL. Spell Token was developed by the founders of Abracadabra Money. It works on the Ethereum blockchain.
SPELL users earn passive income from the interest on the Abracadabra platform, borrowing price and liquidation fees in different markets. People who want to invest in the project should open an account in one of the exchanges where it is traded. Exchanges where SPELL is traded are as follows; Binance is OKX, Bybit and FTX. SPELL Token and MIM (Magic Internet Money) are cryptocurrencies that users lock into the system in the Abracadabra ecosystem. First, owners are given the right to vote to change platform metrics, such as liquidation fees, future security options. Second, it offers holders the ability to make a claim on the fees established by the protocol.
What is Abracadabra Money?
Abracadabra Money is a decentralized platform where users can borrow cryptocurrencies with collateral in exchange for interest. Unlike platforms that lock the tokens you own and do not allow them to be used, and that only allow you to benefit from their returns such as interest and rewards, Abracadabra Money allows you to use interest-bearing tokens at the same time. Abracadabra is unique in that it uses interest-bearing tokens, a type of liquidity-providing token, as collateral.
Abracadabra uses these collateral deposits to issue a USD-indexed stablecoin known as magic internet money on its multi-chain lending platform. This means that unlike most stablecoins in the market, MIM tokens can be easily transferred across a blockchain.
What is MIM Token?
MIM Token aka Magic Internet Money is a decentralized protocol powered by interest-bearing tokens. MIM Token is a fixed-value cryptocurrency that can be minted by displaying various collateral on the platform. MIM Tokens are based on Ethereum. In return for this crypto money obtained against the collateralized crypto, it can earn interest income by using various platforms. Thus, it is possible to earn interest from both collateral and MIM crypto money. Abracadabra is a lending pool for interest-bearing tokens. For this reason, it allows its users to efficiently control their collateral rates compared to traditional lending exchanges. The collateral is first stored on the Abracadabra platform, after which the loan allocation and interest are apportioned to the borrower. MIM Tokens are then stored in users’ wallets and users can use these tokens wherever they want.
The amount of MIM to be taken as a loan primarily depends on two factors:
1. Collateral deposited in USDT.
2. Credit-to-value ratio.
Magic Internet Money, known as MIM, is a stablecoin for the Abracadabra protocol and is backed by interest tokens (ibTKNS). “IbTKN was chosen specifically because it has accumulated interest and will continue to appreciate over time based on market expectations, thereby increasing earnings. The volume of these tokens increases as users pay interest on the portions they borrow from the loan fund.
Examples of these tokens include yvYFI, yvUSDC, yvUSDT, xSUSHI, and yvWETH. These tokens are then collateralized and put into the system that is minted in MIM Tokens. Over time, they can be linked to other cryptocurrency blockchains and then traded.
