SPELL token – Crypto’s magic internet money?
At first, the SPELL token may seem sketchy because of its name. It doesn’t help that it’s on a decentralized lending platform called Abracadabra Money. When you see these wacky names, you might think there’s some black magic afoot. However, this cryptocurrency shows that appearances aren’t what they seem because it contains a wondrous new way of crypto lending!
The common rule of thumb for investing is to reduce risk and boost rewards. The SPELL token’s network lets you apply this principle to crypto lending, so you can make more money from it! What’s the secret behind Abracadabra Money’s crypto wizardry? That is what we will talk about today!
Let’s start by explaining Abracadabra Money’s functions and how it works. Then, I will talk about what the SPELL token does for this decentralized finance platform. Next, I will discuss how Magic Internet Money (MIM) helps borrowers earn a lot from crypto lending. This will help you decide if MIM stablecoins and SPELL tokens are good investments.
Abracadabra Money defies DeFi
SPELL tokens and Magic Internet Money are important parts of the Abracadabra Money platform. It provides decentralized finance (DeFI) services powered by crypto.
If you’ve been following crypto news for a long while, you’re probably thinking of similar DeFi platforms right now. Examples include Polkadot (DOT) and Celsius (CEL).
Otherwise, you’re probably at a loss as to what these terms mean. Let’s start with the purpose of the first crypto Bitcoin (BTC): become digital money that needs no banks or governments.
It will run with the help of decentralized networks called blockchains. Nowadays, we’ve explored its use-cases so well that we now have so many other cryptos with unique features.
Abracadabra Money and similar platforms involve decentralized finance (DeFI) services like crypto lending and yield farming. Yet, its SPELL token and MIM stablecoin set it apart.
As I said, these cryptos allow borrowers and lenders to earn much more from both. They decrease the risks and increase the reward. Let’s talk about the SPELL token first.
What is a SPELL token?
The $sSPELL lending market is finally here!🔥
-Liquidation Fee 5%
-Opening Fee 0.5%
🔮Single-side stake you SPELL tokens here:https://t.co/LGU5WDvrNk
— 🧙🏼♂️ (@MIM_Spell) September 22, 2021
This is Abracadabra Money’s native token that serves three purposes. First, it allows SPELL token holders to vote on changes to the platform.
This is a common feature among other crypto tokens. It makes sure that you keep benefiting from Abracadabra. Also, it gives you a say in what it does, so you keep on holding SPELL tokens.
Second, you can stake SPELL tokens to earn sSPELL. You may think of the smaller “s” to mean “staking” as those tokens represent your share of the SPELL fee pool.
As time passes, your sSPELL tokens will keep on compounding. Once you stake, you cannot take them out until 24 hours. Be sure about staking before doing so.
Once you unstake, you will get your starting deposit of SPELL tokens back. Moreover, you will receive all the ones you’ve earned from the fees.
Third, these tokens reward those who bring other cryptos to the Abracadabra pools. In other words, it makes sure people keep using Abracadabra Money.
At the time of writing, SPELL tokens were worth $0.00698. Within the last 24 hours, the trading volume was 103,214,939,480 tokens, with 103,214,939,480 tokens in the circulating supply.
What is Magic Internet Money?
Abracadabra Money’s stablecoin Magic Internet Money (MIM) has surged past a total supply of $1 billion, with MIM ranking seventh among stablecoins by market cap. https://t.co/7KgnSKTiQL
— Cointelegraph (@Cointelegraph) October 8, 2021
After talking about SPELL tokens, let’s proceed with the Magic Internet Money (MIM) stablecoin. This one improves crypto lending on Abracadabra.
Let’s talk a bit about stablecoins and crypto lending to get readers up to speed. Unlike most cryptos, stablecoins keep the same value no matter what happens.
This is why some people prefer them over other cryptos. At least you don’t have to worry about your money buying fewer things in the afternoon!
USDt is the most popular example, and it’s backed by a mix of US dollars and corporate debts. Yet, MIM sets itself apart by being backed by algorithms.
These are rules set by a code that adjusts the stablecoin based on certain factors. Magic Internet Money increases and decreases the supply to maintain its price to $1.00.
Meanwhile, crypto lending is when you borrow money and leave cryptos as collateral. You may deposit just one type of coin or several. If its value drops too low, you will likely lose those coins.
You take on more risk if you place more than one crypto. Let’s say you placed Bitcoin and Dogecoin (DOGE). If the price of your tokens goes up, you’ll be able to borrow some more money.
The latter’s price moves much wilder than Bitcoin’s, so you’ll see it dip more often. That could lower the value of your overall collateral and increase your risk.
That’s why the SPELL token’s platform lets people choose how much they’re borrowing against each interest-bearing crypto. As a result, you reduce the chance of losing your collateral.
Once you deposit your cryptos, you get Magic Internet Money (MIM) in return. You have to return them to get your cryptos back. You may also spend MIM for other stablecoins like USDC.
At the time of writing, the MIM price was $0.9935, and its latest all-time high was $2.02. Also, the total supply was 1,933,352,207 MIM.
Should you invest?
— Crypto.com (@cryptocom) December 16, 2021
You can buy SPELL tokens on popular exchanges like Binance and Coinbase. Meanwhile, here are the crypto exchanges that offer MIM tokens:
You could invest in SPELL tokens by buying low and selling high. If not, you could stake them to earn more as time passes. This won’t work for MIM tokens because it will keep $1.00.
Whether you’ll push through with it is up to you. Make sure you have a clear reason why you want to invest. Then, learn all you can learn about cryptos to find the best ones.
This article is not meant to share investment advice. It just informs about how Abracadabra Money, SPELL tokens, and MIM tokens work.
Just reading about them in one article isn’t enough. Search the internet for more information about this crypto before you invest. Only use the money you’re willing to lose!
You can start learning more by reading the other articles at Inquirer USA. Those can give you an overview of other cryptos and keep you up-to-date on related trends.