Spell Price

What Is Spell Token (SPELL)?

Spell token (SPELL) is the governance and staking token for Abracadabra.money, a decentralized finance (DeFi) lending platform. The platform accepts interest-bearing tokens (ibTKNs) as collateral from other lending protocols like Yearn Finance and SushiSwap to borrow Magic Internet Money (MIM), a multi-chain USD-pegged stablecoin.

As a DeFi 2.0 protocol, Abracadabra money has a cross-chain functionality that lets users lend and earn interest across different blockchains. It uses Kashi Lending technology, built off of BentoBox and first used by Sushiswap, which allows users to adjust their risk tolerance depending on their preferred collateral.

Users can also participate in yield farming on the platform where they can farm SPELL tokens by staking liquidity provider (LP) tokens.

What Is SPELL Token Used For?

SPELL plays a major role in incentivization, and as a governance token on the Spell Token protocol.

SPELL tokens are rewarded to users who lock their tokens in liquidity pools through yield farming. These tokens provide the liquidity needed to quickly process transactions.

Fees collected by the Abracadabra.money protocol are deposited in a SPELL fee pool. When users stake their SPELL tokens in the pool, they can earn passive income from sSPELL (Staked Spell) tokens, which incentivizes users to contribute to deep liquidity in the market.

Users can also stake SPELL to earn MIM tokens from the revenue generated by Abracadabra.money.

As part of a community-run protocol, SPELL token holders have voting rights on the governance of the network. They can propose new upgrades and vote on proposals floated by fellow token holders.

SPELL Token Price and Tokenomics

SPELL had an original total supply of 420 billion, which was reduced by half to 210 billion through a unique token burning event. Moving forward, SPELL tokens will use a 10-year halving model to halve the rewards distributed each year.

As of August 2022, the total supply is 103,214,939,480 SPELL tokens, with a circulating supply of 97,938,248,939. 

SPELL’s token distribution is as shown:

• 63% (132.3B SPELL): Global Farming Incentives

• 30% (63.0B SPELL): Team allocation (4-Year Vesting Schedule)

• 7% (14.7B SPELL): Initial DEX Offering

Over the month of August 2022, the SPELL token price saw a rise from $0.001088 on August 2 to almost $0.0018 on August 17. It continues to trade sideways at around $0.0015 over the month of August 2022.

The highest SPELL price was $0.07515 in November 2021, which was a remarkable increase from its lowest price of $0.0005916 in August of the same year.

Who Is the Founder of Abracadabra.money? 

While Abracadabra.money isn’t officially a decentralized autonomous organization (DAO), it uses a snapshot page for governance. A multi-step system is used to engage its community in the decision-making for specific aspects of the protocol.

Its MIM tokens are minted through a 5/9 multisignature smart contract. According to an Abracadabra.money Twitter announcement on June 6, 2021, its multisignature contract is composed of the following players:

Poolpi (Yearn Finance), Joseph Delong (Ataria), Leo Cheng (C.R.E.A.M. Finance), Daniele Sestagalli (Abracadabra.money), @squirrelcrypto (Arrakis Finance), Michael Egorov (Curve Finance), 0xMerlin.eth (Abracadabra.money), Julien Bouteloup (StakeDAO) and @GeorgiyXo (Abracadabra.money).

How Does Abracadabra.money Work?

The Abracadabra.money ecosystem operates by letting users borrow, leverage, stake and swap tokens on the platform. It works using three tokens: SPELL (used for incentivization), sSPELL (obtained from staking SPELL tokens) and MIM (used for lending).

Yield farming is a critical component of the Abracadabra.money network. Users contribute to a liquidity pool and farm SPELL. Through farming, asset holders lock their tokens into a liquidity pool and receive SPELL tokens. The amount of SPELL emission allocated to each farm is adjusted every week, depending on market dynamics.

The network also uses a SPELL fee pool where interest fees, borrowing fees and 10% of the liquidation fees are deposited. Users can stake their SPELL tokens in the fee pool and receive sSPELL tokens, which compound continuously.

Additionally, users can open a leveraged position by depositing MIM tokens to borrow even more MIM to earn higher yields. As a multi-chain token, MIM can be easily bridged via Multichain (previously AnySwap), and can also be swapped with other stablecoins through Curve Finance.

What Makes Abracadabra.money Unique?

Most DeFi lending protocols only accept cryptocurrencies like BTC and ETH as collateral, while Abracadabra.money allows users to collateralize interest-bearing tokens (ibTKNs) from other lending protocols in exchange for its stablecoin, MIM. ibTKNs actually increase in value over time, so the amount that one can borrow will keep rising.

Moreover, Abracadabra.money allows its users to potentially earn extremely high yields through leveraging their interest-bearing token positions. They can do so by first borrowing against their position, then borrowing against the borrowed MIM token, and continuously repeating the process till they reach their desired leverage. All of these steps occur within one transaction, so the user only needs to pay the gas fee once.

How to Store SPELL Tokens

SPELL is an ERC-20 token. Hence, once you buy SPELL tokens, you can store them in any Ethereum-compatible wallet, such as MetaMask. You can also opt to store the tokens in a hardware wallet, such as Ledger Nano.

Where to Buy Spell Token (SPELL)

You can buy SPELL from any top crypto exchange, including Bybit.

How to Buy Spell Token (SPELL) on Bybit

To purchase SPELL on the Bybit exchange, follow these simple steps:

1. Head to Bybit’s spot trading page (Home → Trade → Spot Trading).

2. Select the SPELL/USDT pair on the left side of the page.

3. Choose the type of order you’d like: Limit Order, Market Order or Conditional Order.

For Limit Orders:

1. Select Limit.

2. Enter the order price.

3. Enter the number of SPELL you wish to buy.

4. Click on Buy SPELL.

5. Once you’ve confirmed your information is correct, click on Buy SPELL.

6. View your order details under Active on the web page, or Orders if you’re using the Bybit app.

For Market Orders:

1. Select Market.

2. Enter the amount in USDT you’ve paid to buy SPELL.

3. Click on Buy SPELL.

4. Once you’ve confirmed your information is correct, click on Buy SPELL.

5. View your order details under Filled.

For Conditional Orders:

1. Select Conditional.

2. Enter the trigger price.

3. Choose to execute at Market Price or Limit Price.

1. Market Price: Order price doesn’t need to be set.

2. Limit Price: Order price needs to be set.

4. According to order types:

1. Market Buy: Enter the amount of USDT you’ve paid to buy SPELL.

2. Limit Buy: Enter the number of SPELL you want to buy.

5. Click on Buy SPELL.

6. Once you’ve confirmed your information is correct, click on Buy SPELL.

7. View your order details under Conditional on the web page, or All Orders → Current Orders on the Bybit app.

For more help, visit the Bybit spot trading guide.