Things To Know Before Investing In Spell Token

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Whenever we mention cryptocurrencies, the most common names that come to mind are Bitcoin and Ethereum. But apart from these two, there are hundreds of other cryptocurrencies which are now getting a lot of attention and popularity. One of the most interesting cryptocurrencies in today’s times is the Spell token.

In this article, let us learn more about Spell Token.

Abracadabra.money is the decentralized lending platform for SPELL, and you can even know about the Spell Token Price from it. SPELL is also an ERC-20 Token that runs on the Ethereum network, which is within the ecosystem of Abracadabra.money is one of the multiple tokens and types of tokens that plays an important role. In this guide, you will be interested in seeing the role of SPELL in the ecosystem and its benefits. 

Problems that Spell Token (SPELL) designed to address

SPELL is not a type of token that will solve the problems in this crypto industry or the real world. However, it does not show any essential role in the platform, but it does help in two different ways -

• Assist in revolutionizing lending - On this platform, Spell Token functions as the token of reward. Here, the users are allowed to deposit the collateral and borrow MIM (Magic Internet Money which engages in staking, yield farming, and much more to farm the SPELL. 
• Offer Incentives - As mentioned above, offering rewards or incentives is one of the main purposes of SPELL tokens. The project ensures loyalty and support by offering incentives to the users. In return, it offers price stability and growth to the users.

Advantages of Spell Token (SPELL)

When SPELL was created, problem-solving was not in mind, though the user can also experience several other benefits from the project. If you will choose Abracadabra.money, then you can experience those benefits.

• Staking

Like other platforms, staking works in the same way. In fact, staking has become one of the most popular activities in the DeFi sector. Users can lock up the tokens and receive rewards that eliminate the risk related to crypto activities. 

With long-term investors staking has become quite famous. They will not just get to keep the token, but they can also hold them for months or even years and wait for an increase in the price.

• Liquidity rewards

SPELL token offers liquidity rewards for those who want to farm SPELL. The process is quite similar to providing regular liquidity to any other ecosystem. 

Users only need to store their tokens in liquidity pools so the project can access them and process transactions swiftly when necessary. Users are compensated in SPELL in return, which generates passive revenue.

• Governance

There is also a matter of governance that needs to be discussed, which is another primary use case between the two. With the project, which will be decentralized completely, the token holder community will be the one to make all the decisions that will have an impact on the future project. 

How does Spell Token work?

Spell Token is a reward token used by the decentralized lending platform, Abracadabra.money. The platform uses the token that bears interest, or ibTKNs, which offer collateral to borrow another token known as MIM, which is quite similar to DAI.

However, if the users contribute to the project by engaging in one or many other opportunities, such as staking, liquidity providing, and yield farming, they may receive the rewards for that. 

With the help of SPELL, the user can also participate in the governance project, or they can earn rewards and increase their wealth gradually through HODLing and receive some extra income. 

It is also important for you to know that Abracadabra.money uses the Kashi Lending Technology created by any other project, SushuSwap. It allows the users to bring several innovations which De-Fi the lending, including isolating the lending market and taking all the risks not shared by the entire ecosystem.

Conclusion 

Spell Token is not a token that will change the world, but it encourages users to go for a project that can enhance decentralized lending. 

Moreover, the investors who include this token in their portfolio are opening the doors to practical advantages, which makes it one of the most sought-after cryptocurrencies for investment. 

 

Featured image sourced from Pexels

 

This content should not be interpreted as investment advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and small market capitalization coins are inherently more risky than large cap cryptocurrencies. These tokens are subject to larger liquidity and market risks.