About

Spell is the utility and governance token of Abracadabra, a decentralized finance protocol that enables users to leverage interest-bearing tokens, acquired from staking in vaults, as collateral. This collateral can then be used to mint Magic Internet Money (MIM), a stablecoin pegged to the USD. The platform offers a solution for efficiently utilizing locked capital in the DeFi ecosystem, allowing users to put their staked assets to further use.

History

Launched in May 2021, Abracadabra has been taking over the DeFi world, with its stablecoin MIM now the 6th largest in the category by market cap. Abracadabra, a cross-chain lending protocol, can enable users to make use of the interest-bearing tokens that they have earned in vaults (e.g. xSUSHI, yvUSDT), so that the capital can be utilized. Magic Internet Money (MIM), is Abracadabra's USD pegged stablecoin that is backed by interest bearing tokens. Users simply deposit their interest bearing assets to Abracadabra as collateral to obtain a debt allocation and interest rate, then MIM tokens will be despoited into the borrower's wallet. In addition to MIM, SPELL is Abracadabra's governance token for staking. Holders of SPELL can stake their tokens to receive sSPELL, which grant holders voting rights and claim of fees generated by the protocol.