Spell Token is associated with the lending platform Abracadabra.money which accepts interest-bearing DeFi tokens as collateral in exchange for their stablecoin MIM.
With DeFi booming, many projects and platforms are vying for a pie in a similar market. In this scenario, millions of interest-bearing tokens are being held idle in the market, which can be put to great use. Abracadabra.money is a lending platform that seeks utility in these idle tokens as collateral by providing users access to US dollar-pegged stablecoins. Let’s discuss the SPELL token and its associated platform Abracadabra.money.
Abracadabra.money: Introduction
Abracadabra is a decentralized lending platform that allows users to take advantage of their interest-bearing position by borrowing against it. Users can borrow a stablecoin called Magic Internet Money (MIM) by using their interest-bearing tokens (ibTKNs), such as yvYFI, yvUSDC, yvUSDT, xSushi, etc., as collateral. The borrowed stablecoins can again be used as collateral for borrowing more stablecoins. This looped arrangement allows the platform to offer many cryptocurrency pairs that are not supported by other DEXs.
The platform uses the Kashi lending technology, first introduced by SushiSwap. This technology lets users access Abracadabra’s isolated lending markets where the risk is not shared collectively. If the liquidity in one currency pair is lost, the effect doesn’t permeate to other markets. SPELL is the native token…
