Spell Token (SPELL) is a governance token of Abracadabra.money, a leverage and lending platform. Abracadabra.money uses interest-bearing tokens (ibTKNs) as collateral to borrow a USD-pegged stablecoin called Magic Internet Money (MIM), which can be used as any other traditional stablecoin.
Abracadabra.money uses Kashi Lending Technology to provide isolated lending markets that allow users to adjust their risk tolerance according to the collateral they decide to use. It also uses interest-bearing tokens such as yvUSDT and xSUSHI to provide users with various features such as borrowing, swaps, and staking.
In Abracadabra.money, every MIM is backed by a specific interest-bearing token (ibTKN). Unlike most protocols where a user's collateral is at risk of liquidation, with Abracadabra.money, each collateralized debt position (CDP) is isolated and only at risk of its own individual liquidation.
The protocol operates on a gamified ecosystem and describes itself as a "spell book." The spellcaster, or the borrower, produces MIM by placing yvUSDT or xSUSHI as collateral. Users have to repay the debt with interest to receive their collateral back, thereby reversing the "spell."
Outside of lending and borrowing, Abracadabra.money also offers staking, farming, and bridging. For example, SPELL tokens can be staked on the protocol to receive sSPELL tokens. 75 percent of the fees collected from borrowed MIM will be used to buy SPELL tokens for sSPELL holders. In addition, sSPELL holders also have voting rights, which means they can propose changes to the platform, such as the liquidation fees, future collateral options, and more.
The protocol allows users to borrow at low-interest rates. In addition, users have multiple options to bridge between networks such as Fantom, Avax, and Ethereum.
SPELL price and tokenomics
The governance token, SPELL, of Abracadabra.money had an initial supply of 420 billion but has since been reduced to 210 billion through token burning.
63 percent of the total supply of SPELL tokens was channeled to incentivize particular LP pairs and other liquidity mining programs. 30 percent of the total supply was also allocated to team members across a four-year vesting schedule, while the remaining 7 percent was distributed via an initial dex offering (IDO).
SPELL's price is mainly driven by the total value locked and the number of users accessing the spell book.
About the founders
Two central figures associated with the project are Daniele Sestagalli and pseudonymous co-founder, Squirrel. Sestagalli has worked on several notable projects, including Popsicle Finance, Magic Internet Money, and Wonderland Money.
