The keyword “DeFi 2.0” has recently stirred up the crypto world, bringing a whole new wave of innovative ideas to possibly alternate the “probably” obsolete original DeFi. Abracadabra Money is one of those innovations.
What is Abracadabra Money? How is Abracadabra Money innovative? This article will provide you with the answers to these questions.
What is Abracadabra Money?
Abracadabra Money is a lending platform that uses interest-bearing tokens (ibTKNs) like yvWETH, yvUSDC, yvYFI, yvUSDT, xSUSHI,… as collateral to borrow MIM (Magic Internet Money) which is a USD-pegged stablecoin. MIM has the same function similar to any other stablecoins.
The innovative idea is that Abracadabra Money has brought interest-bearing tokens into use. Before, those tokens are left idle. With Abracadabra Money, users can leverage their funds to the next threshold at minimum risk, opening various additional models and possibilities.
What are SPELL and MIM token?
There are two main tokens in the Abracadabra Money ecosystem:
- SPELL (Abracadabra Money Token) serves as the governance token.
- MIM (Magic Internet Money) is the core component to sustain the Abracadabra Money’s lending model.
How does Abracadabra Money work?
Abracadabra Money provides isolated lending markets, which were first introduced by Kashi/Bentobox – a product of SushiSwap. This allows users to adjust their collateral ratio more freely compared to using traditional lending markets.
The innovative approach that Abracadabra Money implements is to not only leverage the use of interest-bearing tokens, but also leverage the borrowing of them exponentially. Here’s how.
To leverage yielding positions, there are 6 steps. I’ll take yvUSDT as an example.
Step 1: Deposit USDT into yEarn to receive yvUSDT (an interest-bearing token).
Step 2: Deposit yvUSDT into Abracadabra Money as collateral.
Step 3: Select a leverage level (I’ll take 4x as an example) and borrow the corresponding amount of MIM.
Step 4: Swap those MIM to USDT.
Step 5: Deposit USDT into yEarn to receive yvUSDT (repeat Step 1).
Step 6: Deposit yvUSDT into Abracadabra Money as collateral to borrow more MIM (repeat Step 2).
As long as users control their collateral ratio and risk tolerance well enough, this model is extremely efficient, especially with the use of interest-bearing tokens. Abracadabra Money boosts users’ capital efficiency, at the same time, they are still earning yields from those tokens.
Detailed information about SPELL and MIM
SPELL Price Today
Currently, you can track the price of SPELL on Coin98 Markets.
Coin98 Markets is a website that helps users to get updates of the real-time prices, as well as view the detailed information of a Token Metric from any project. More specifically, you can access the home page or the community page of a project, or filter the coins/tokens by Market Cap, Trading Volume, etc.
- Name: Spell Token.
- Ticker: SPELL.
- Token standard: ERC-20.
- Token type: Governance.
- Max supply: 420,000,000,000 SPELL.
- Circulating Supply: 70,631,239,342 SPELL.
- Contract address: 0x090185f2135308BaD17527004364eBcC2D37e5F6.
- Name: Magic Internet Money.
- Ticker: MIM.
- Token standard: ERC-20.
- Token type: Utility.
- Max supply: Unlimited.
- Circulating Supply: 1,678,352,207 MIM.
- Contract address: 0x99d8a9c45b2eca8864373a26d1459e3dff1e17f3.
SPELL Token Allocation
- MIM-3LP3CRV LP tokens: 45%.
- Team allocation: 30%.
- SushiSwap ETH-SPELL LP tokens: 18%.
- IDO: 7% (half on Uniswap v3 and half on Sushiswap).
SPELL Token Sale
There is no Token Sale for SPELL tokens.
SPELL Token Release Schedule
Currently, 853,879,084 SPELL are being emitted weekly, which consist of:
Besides, 63% of the Total Supply used as incentives will be halved every year.
30% of the Total Supply is allocated to the team, which will be released as: 50% over the first year, 25% over the second year, 12.5% over the third year, 12.5% over the fourth year.
SPELL Token Use Cases
Currently, the SPELL token serves only for governance purposes. SPELL holders can vote on proposals and receive platform fees by staking SPELL.
How to get SPELL and MIM Token
You can get SPELL and MIM through multiple options:
- DEXs: Uniswap, Sushiswap,…
- CEXs: MEXC, Gate,…
How to buy SPELL & MIM token
Coin98 Exchange is a decentralized exchange (DEX), a Multi-chain liquidity aggregator that offers users a wide variety of DeFi services (swap, stake, lend, borrow,…) through intuitive and simple interfaces.
You can buy SPELL & MIM on Coin98 Exchange by following these steps at: exchange.coin98.com
Step 1: Connect Coin98 Extension Wallet.
Step 2: Select SushiSwap.
Step 3: Choose the trading pair:
- Search SPELL or MIM.
- If the result does not come up, you can paste the token’s contract into the search box:
- SPELL: 0x090185f2135308BaD17527004364eBcC2D37e5F6
- MIM: 0x99d8a9c45b2eca8864373a26d1459e3dff1e17f3
Step 4: Adjust the amount you want to swap.
Step 5: Adjust the gas fee, then click Approve.
How to store SPELL & MIM Token
You can store SPELL & MIM token on Coin98 Wallet with these steps:
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search SPELL or MIM Token.
Step 3: Click on the correct result, copy the wallet address and send token to this address.
Roadmap & Updates
Team, Investors and Partners
- Squirrel (Popsicle Finance and Abracadabra Money).
- Danielesesta (Popsicle Finance, Abracadabra Money and WonderlandDAO).
- 0xMerlin (Abracadabra Money).
- Georgiy (Popsicle Finance and Abracadabra Money).
Abracadabra Money has no Token Sale, so there is no investor.
Abracadabra Money has partnered with multiple projects, namely Convex Finance, Loot, Popsicle Finance, Olympus DAO, SpiritSwap,…
Is Abracadabra Money (SPELL) a good investment?
I hope that with the aforementioned information, you have understood what Abracadabra Money is and how Abracadabra Money works. This article should give you a deep insight into the project, so there is no financial advice. You should Do Your Own Research before conducting any investment, and be responsible for your own fund. However, Coin98 will provide some notable points of the project to give you the best overview to make your own decisions.
DeFi 2.0 brings a new wave to the market, and Abracadabra Money is a part of it. Capital Efficiency is possibly the next target for protocols to work on, and Abracadabra Money has been doing a great job in this branch.
To dive deeper, MIM is actually a Decentralized Stablecoin. We have not seen many truly Decentralized Stablecoins; only a few names like DAI (MakerDAO) or UST (Terra) are well-known in the market. With the recent cooperation between MIM and UST, Decentralized Stablecoins can be the catalyst to lead the next explosive trend.
The TVL (Total Value Locked) in Abracadabra Money has increased tremendously from $146M to $2.82B (1,931%) in just 2 months, showing how effective its work model is, as well as how massive the support from the community is. With the project going multichain, it is expected to rise even more dramatically.
Centralized Stablecoins (Full-reserve Stablecoins) like USDT or USDC have over time revealed their shortcomings in terms of the legal aspect. This has led the way for Decentralized Stablecoins like MIM to grow and potentially outperform them in the future. MIM is a potential candidate for this vision.
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