Spell Token (SPELL) is a token associated with a lending platform, called abracadabra.money
, that uses interest-bearing tokens as collateral to borrow a USD-pegged stablecoin called Magic Internet Money (MIM). SPELL coin is the reward token for this platform.
This platform, or SPELL token website
, uses the Kashi Lending Technology developed by SushiSwap, one of the major Defi decentralized exchanges to provide isolated lending markets that allow borrowers to adjust their risk tolerance based on the collateral that they decide to use. Users can deposit collateral on the platform and borrow against it, as well as being exposed to yield farming opportunities, where users can stake their tokens and earn SPELL, facilitating liquidity for certain crypto pairs involving Ethereum and Spell. Additionally, users can also open leverage farming positions using MIM from their interest-bearing collateral, as a feature of SPELL coin investing.