Abracadabra.money What is (SPELL)? All about SPELL cryptocurrency

In the DeFi world, where assets can be locked or unproductive when staked in vaults, the demand for maximizing capital efficiency is increasingly growing. Abracadabra.money (SPELL) emerges as a breakthrough lending protocol, allowing users to mortgage "interest-bearing" tokens to borrow stablecoins, opening doors to financial leverage on typically passive capital assets. Let's explore with Allinstation how Abracadabra is "magically" making DeFi work more efficiently through the article below!

What is Abracadabra.money (SPELL)?

Abracadabra.money is a decentralized lending protocol that allows users to use interest-bearing tokens (such as yvWETH, yvUSDC, xSUSHI...) as collateral to borrow the Magic Internet Money (MIM) stablecoin.

The project stands out by leveraging locked assets in vaults to generate cash flow, while providing features such as lending, staking, farming, multi-chain bridge, and DAO governance through the SPELL token.

Highlighted Features of Abracadabra.money (SPELL) Project

• Optimize Passive Assets: Leverage vault tokens like yvUSDT, xSUSHI to continue generating cash flow.
• Unique Lending Module Model (Isolated Markets): Limit cross-asset risk spread.
• Gamified and Approachable Philosophy: Designed with a magical style (inspired by Harry Potter) to increase community engagement.
• Transaction Fees Redistributed to Community: SPELL stakers share platform profits.
• Multi-chain: Supports multiple blockchains and continuously expands.

Features of Abracadabra.money (SPELL)

Borrow: Abracadabra uses Kashi lending technology to provide separate lending markets, allowing users to adjust their risk tolerance based on the collateral they choose to use.

Farm: Abracadabra offers various farming opportunities where users can stake their LP tokens to farm SPELL tokens, helping maintain deep liquidity on specific pairs.

Stake: Users can stake SPELL tokens to receive sSPELL and participate in the transaction fee sharing mechanism.

Swap: Abracadabra provides stablecoin swap capabilities through Curve Finance.

Bridge/Multichain Functionality: Users can use the bridge feature to transfer assets between blockchains like Avalanche, Ethereum, Binance Smart Chain, and Fantom.

• Cauldron is a place where users mortgage interest-bearing assets to borrow MIM.
• Each Cauldron is a separate market with different collateral ratios and liquidation risks depending on the type of asset.
• For example: you can use yvUSDT as collateral in Cauldron v2 to mint MIM with a 75% LTV (Loan-to-Value) ratio.

Highlight: Independent market design helps limit contagion risk and optimize for each type of collateral asset.

Degenbox – DeFi Leverage Strategy

Degenbox is an extension module that helps users perform automatic looping strategies:

• Users deposit collateral assets.
• Mint MIM.
• Swap MIM back to the original collateral asset.
• Repeat the cycle multiple times to increase profit yield (APY).

This is a product commonly used for MIM farming strategies on Curve and Convex.

Highlight: Allows automatic leverage and profit optimization on complex strategies without manual operations.

Overview of SPELL Token and Tokenomics

Basic Information

• Token Name: Abracadabra.money
• Ticker: SPELL
• Blockchain: Ethereum
• Token Standard: ERC20
• Contract: 0x090185f2135308BaD17527004364eBcC2D37e5F6
• Token Type: Utility, Governance
• Total Supply: 196,008,739,620 SPELL
• Circulating Supply: 162,091,199,371 SPELL
• Max Supply: 210,000,000,000 SPELL

SPELL Token Distribution

• 63%: For farming rewards.
• 30%: Team & Advisors (locked according to schedule).
• 7%: IDO sale.
  

Distribution Schedule

• Team: 3-year vesting (50% – 25% – 12.5%).
• IDO: Allocated on SushiSwap & Uniswap.
• LP rewards: For providing liquidity on Curve/Sushi.

SPELL Use Cases

• DAO Governance: Voting on proposals, changing system parameters.
• Receive rewards when staking (sSPELL).
• Pay fees within the ecosystem.

Roadmap

Roadmap updated to 2025:

• Expand multi-chain support (Ethereum, Arbitrum, Fantom, Avalanche…)
• Launch new lending Cauldrons with more collateral types.
• Enhance integration with other DeFi dApps (Curve, Convex, Sushi, Stargate…)
• Improve SPELL tokenomics with new staking model and dynamic fees.
• Deploy additional protocols like Degenbox to leverage double loop farming strategies.

Project Team, Investors, and Partners

Development Team

Abracadabra.money was initiated by an anonymous development team, with Daniele Sestagalli being the most prominent, a well-known figure in DeFi who was behind projects like Wonderland (TIME), Popsicle Finance (ICE), and SushiSwap.

The project operates on a decentralized model with the DAO community making major decisions related to products, finances, and governance.

Investors

Abracadabra.money did not raise capital through traditional methods but focused on IDO and farming rewards. However, the project received a grant from Arbitrum Foundation on 10/13/2023, totaling $1.21 million to support ecosystem development on the Arbitrum network.

Partners

• Curve Finance: MIM-3CRV pool is the main liquidity source.
• Convex Finance: Degenbox supports profit optimization from Curve.
• SushiSwap: SPELL-ETH, SPELL-MIM liquidity.
• Stargate, LayerZero: Cross-chain infrastructure for MIM/SPELL.
• Yearn Finance: Many collateral assets are from Yearn vaults.

Summary

Abracadabra.money (SPELL) is an innovative DeFi protocol that helps users maximize capital efficiency by mortgaging interest-bearing assets to borrow the MIM stablecoin. With an ecosystem including lending module (Cauldron), stablecoin (MIM), utility token (SPELL), leverage strategy (Degenbox), and multi-chain support, the project offers flexible and efficient solutions for DeFi investors. Despite existing risks related to liquidation and smart contract security, Abracadabra remains a pioneering platform in optimizing cash flow in the decentralized financial world.

This article is for informational purposes and should not be considered investment advice.