$0.00008749

Spell Token (SPELL) is the reward token linked to abracadabra.money, a lending platform where users can use interest-bearing tokens as collateral to borrow a USD-pegged stablecoin known as Magic Internet Money (MIM). The platform operates on the Kashi Lending Technology originally developed by SushiSwap, which creates separate, isolated lending markets. This design lets users manage risk based on the specific collateral they choose, and it allows for lending pairs not typically found on other decentralized exchanges. Borrowers can leverage their interest-bearing positions by repeatedly borrowing against collateral in a single transaction, incurring only one gas fee. The platform also supports yield farming, where users stake liquidity provider tokens to earn SPELL, and offers leveraged farming opportunities using borrowed MIM.

Abracadabra is not run as a formal decentralized autonomous organization but is governed through a Snapshot voting page. MIM tokens are minted via a 6-of-10 multisignature contract controlled by several partially pseudonymous individuals from various DeFi projects. SPELL has a total supply of 210 billion, with the same amount burned after token generation. The distribution allocates 63% to global farming incentives, 30% to the team with a four-year vesting schedule, and 7% to an initial DEX offering. Emissions follow a ten-year halving model, with weekly releases of 624 million SPELL. Staking SPELL grants governance voting power and a share of platform fees, which are automatically compounded. The token is available on multiple blockchains, including Ethereum, Avalanche, Fantom, and Arbitrum.