Spell (SPELL) Research

Spell (SPELL) Research Details

Spell (SPELL) Spell

INTRODUCTION

Abracadabra. Money is a multi-chain lending protocol that uses interest-bearing assets to generate Magic Internet Money.

Interested tokens that can currently be used as collateral include liquidity provider (LP) tokens from Convex, Curve, Yearn, among others. The termination of a loan in Abracadabra differs from other stable coins/lending agreements such as MakerDAO, in that each component of collateralized debt position (CDP) is different and has its own closing value. If the closing price of each CDP is exceeded, the seller can purchase the position by paying any remaining MIM.

The Abracadabra protocol has two major tokens running on its ecosystem. The first is SPELL, the governance token, that works on Ethereum Blockchain, and the other is Mim (Magic Internet Money). Among other benefits, the main function of the Spell Token is staking. Like many other tokens that use the Ethereum platform, SPELL can be installed on a stake for various benefits.


HISTORY

Launched in May 2021, Abracadabra took over DeFi land, and the stable coin MIM now ranks 7th in the market. Abracadabra, a cross-chain lending protocol, can enable users to use the interest-bearing tokens they have earned on vaults (e.g. xSUSHI, yvUSDT), for greater revenue. Magic Internet Money (MIM), a stable coin Abracadabra USD supported by interest tokens. Consumers simply deposit their interest-bearing assets on Abracadabra as collateral to obtain credit share and interest rates, and MIM tokens will be settled into the borrower's wallet. In addition to MIM, SPELL is an Abracadabra governance management token. SPELL administrators can file their own tokens to obtain sSPELL, which provides owners with voting rights and payment claims generatedby the law.


REASON TO BUILD THE PROJECT

Abracadabra's isolated mortgage markets have sparked a wave of innovation in decentralized finance (DeFi). In an isolated mortgage market, the risk is shared equally. Users can provide cash with any token and if a currency pair loses its value or something happens to a smart contract, only that pair is affected and not the whole forum. This allows Abracadabra to offer a variety of pairs that are not supported by multiple decentralized exchanges (DEXs).

This provides benefits in the way that users can use their positions of interesting tokens. Users borrow against their positions and then borrow again against stable coin borrowed, creating various loops and thusincreasing their power. All of this is done in a single transaction, which iswhy the user only pays for gas once.

Spell Token (SPELL) can be farmed by donating money to one ofthe different pools. SPELL may be attached to a stake, and stacked tokens accumulate a portion of the field's revenue (interest, borrowing funds, and 10%of closing down certain markets), which cover automatically.


USE CASES

The use cases of Spell Token are:

·       Staking: Users can contribute to SPELL to get sSPELLfor a share of the protocol distribution. The proceeds of the protocol are used to fund the purchase of the SPELL token at market price, and then to the parties.

·       Liquidity Mining: Users can provide MIM or SPELL in spending pools on DEX such as Curve Finance and Sushiswap to get SPELL and share of service payments.

·       Governance: Servers will be required to stake SPELL in order to receive sSPELL and to vote on governance proposals.


TOKENOMICS

The total distribution of Spell Token (SPELL) is 210 billion, and 210 billion has been burned after the production of tokens. The distribution of tokens is as follows:

63% (132.3B SPELL): Global Farming Incentives

30% (63B SPELL): Team Allocation (4 year Vesting Schedule)

7% (14.7B SPELL): Initial DEX Offering


MAJOR NEWS AND EVENTS


DATE

NEWS/EVENTS

IMPACT

29/01/2022

Sifu, the CFO of its merger project Wonderland, hid a dark secret from Spell.

-29% Decrease

16/12/2021

Spell token gets listed on Crypto.com.

+62% Increase

25/09/2021

Abracadabra has announced a partnership with the decentralized reserve currency protocol Olympus (OHM) and officially launched the sSPELL lending market. 

+116% Increase


CONCLUSION

Abracadabra is a project aspiring to build a high-quality product that seeks to fill what seems to be a real gap in the corner of market performance and stable coin for fixed investments. The amazing speed with which the project is growing indicates that Abracadabra has achieved market equity for the product. The final battle of DeFi, is open, divided by the world, and has just begun.


DISCLAIMER

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.