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What is Spell Token (SPELL) and how does it work?

by Financial Economy

Spell Token (SPELL) is the management token of Abracadabra.money, a platform that allows users to deposit collateral in the form of interest-bearing crypto assets (like yvYFI, yvUSDT, yvUSDC, xSUSHI). There are two main tokens working in the ecosystem of the Abracadabra protocol. Information about what is Spell Token (SPELL), how does it work, how to buy, on which exchange, how much is it, etc is in continuation of the article. You can browse here for information about Dogelon Mars coin (ELON).

What is Spell Token (SPELL) and how does it work?

Abracadabra is a multi-chain lending protocol that uses interest-bearing tokens as collateral to issue Magic Internet Money (MIM), a USD-pegged stablecoin. SPELL is a management token that can be staked to receive revenue from the protocol.

There are two main tokens working in the ecosystem of the Abracadabra protocol. The first is SPELL, the platform’s management token, and the other is MIM (Magic Internet Money). Among other benefits, Spell Token’s primary function is staking. Like many other tokens using the Ethereum platform, SPELL can be staked to get various benefits.

Advantages of staking SPELL tokens!

Here are some advantages of staking SPELL tokens:

  • Governance: Because the Abracadabra protocol is truly decentralized, the number of Spell tokens you own will determine how much your voting weights in varying attributes such as transaction fees, collateral, and total locked value (TVL).
  • Passive Income: When Spell Token is staked, users earn a percentage of transaction fees from the platform. These fees are primarily interest earned from users borrowing MIM. 75% of the fee goes to token holders; 20% is allocated to the management treasury, which helps liquidity pools, and the last 5% is kept in a multisig treasury that helps mitigate risks when market conditions worsen.

How to buy SPELL token and on which exchange?

Spell token is listed a lot of cryptocurrency exchanges such as Binance, OKX, FTX, Bybit, Bitget, etc and it can be purchased from these exchanges. However, before investing, it is necessary to make sure that the exchange and cryptocurrency project is “RELIABLE”. It is very important point for investment.

Spell token price!

As of 17 February, 2022, at the time of the writing, 1 SPELL coin price is around $0,005 (the price can change instantly).

Caution: The information contained in this content is for general informational purposes only. It is not investment advice.

For information about cryptocurrency: https://en.wikipedia.org/wiki/Cryptocurrency

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