Disclaimer: This page may contain affiliate links. CoinMarketCap may be compensated if you visit any affiliate links and you take certain actions such as signing up and transacting with these affiliate platforms. Please refer to Affiliate Disclosure
Spell Token (SPELL) is a reward token associated with abracadabra.money, a lending platform that uses interest-bearing tokens (ibTKNs) as collateral to borrow a USD-pegged stablecoin called Magic Internet Money (MIM). Abracadabra uses the Kashi Lending Technology pioneered by SushiSwap (SUSHI) to provide isolated lending markets that allow users to adjust their risk tolerance according to the collateral they decide to use. Users can deposit collateral and borrow MIM against it. Abracadabra also offers yield farming opportunities, where users can stake their liquidity provider (LP) tokens to farm SPELL. This facilitates better liquidity for certain cryptocurrency pairs, currently Ether (ETH)-Spell Token (SPELL) and Magic Internet Money (MIM)-LP 3pool Curve (3CRV). Furthermore, users can also open leveraged farming positions using borrowed MIM from their interest-bearing collateral.
Who Are the Founders of Spell Token?
Abracadabra is not an official decentralized autonomous organization (DAO) but is instead governed through a Snapshot page. MIM are minted through a 6/10 multisignature contract composed of the following partially pseudonymous users:
Thanks to the Kashi Lending Technology introduced by SushiSwap, Abracadabra’s isolated lending markets have sparked a wave of innovation in decentralized finance (DeFi) lending. In an isolated lending market, the risk is not shared collectively. Users can provide liquidity for any token and if the currency pair loses its liquidity or something happens to the smart contract, only that pair is affected and not the entire platform. This allows Abracadabra to offer various pairs that are not supported by most other decentralized exchanges (DEXs).
One of the features of using this technology is that users can leverage their interest-bearing token positions. Users borrow against their positions and then again borrow against the borrowed stablecoin, creating several loops and thereby increasing their leverage. All of this is done in one transaction, which is why the user only pays a gas fee once.
Spell Token (SPELL) can be farmed by providing liquidity in one of the different pools. SPELL can also be staked, and staked tokens accrue a share of the platform fees (interest, borrowing fees, and 10% of the liquidation fee for certain markets), which auto-compound.
How Many Spell Token (SPELL) Coins Are There in Circulation?
The total supply of Spell Token (SPELL) is 210 billion, with 210 billion having been burned after token generation. The token distribution is as follows:
63% (132.3B SPELL): global farming incentives
30% (63.0B SPELL): team allocation (4 year vesting schedule)
7% (14.7B SPELL): initial DEX offering
SPELL will follow a ten-year halving model, which will cut in half the rewards distributed every year. 50% of team tokens are to be issued in the first year, 25% in the second, and 12.5% in the third and fourth years. Each week, 624 million SPELL are emitted. SPELL is also used as a governance token, with users having voting power according to how much they have staked.
Unlike PoS or PoS, Avalanche uses a directed acyclic graph (DAG) protocol, in which all nodes process and validate transactions.
Fantom uses its own proprietary consensus mechanism, which allows both for higher capacity and two-second transaction finalization, alongside security improvements.
Arbitrum is a layer two scaling solution for Ethereum that uses optimistic rollups to achieve faster transaction times and near-zero gas fees.
Can Spell Token Hit $1?
Although Spell Token (SPELL) has been in a continuous uptrend and has an impressive market capitalization of almost 2 billion dollars, it is unlikely that it will ever hit $1, due to its enormous total supply. If the community decided to burn more SPELL from the total supply and if Abracadabra integrated with more protocols, SPELL could continue its uptrend in the future and reach new all-time highs.
The live Spell Token price today is $0.000527 USD with a 24-hour trading volume of $4,431,843 USD. We update our SPELL to USD price in real-time. Spell Token is down 6.48% in the last 24 hours. The current CoinMarketCap ranking is #418, with a live market cap of $79,476,323 USD. It has a circulating supply of 150,729,296,899 SPELL coins and the max. supply is not available.