{"id":14471,"date":"2022-01-19T15:20:12","date_gmt":"2022-01-19T09:50:12","guid":{"rendered":"https:\/\/zebpay.com\/?p=14471"},"modified":"2025-04-24T11:32:58","modified_gmt":"2025-04-24T11:32:58","slug":"how-does-abracadabra-money-spell-work","status":"publish","type":"post","link":"https:\/\/zebpay.com\/au\/blog\/how-does-abracadabra-money-spell-work","title":{"rendered":"How does Abracadabra Money (SPELL) work?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/au\/blog\/how-does-abracadabra-money-spell-work\/#What_is_Abracadabra_Money\" title=\"What is Abracadabra Money?&nbsp;\">What is Abracadabra Money?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/au\/blog\/how-does-abracadabra-money-spell-work\/#How_does_Abracadabra_Money_work\" title=\"How does Abracadabra Money work?&nbsp;\">How does Abracadabra Money work?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/au\/blog\/how-does-abracadabra-money-spell-work\/#The_Abracadabra_Token_SPELL\" title=\"The Abracadabra Token, SPELL\">The Abracadabra Token, SPELL<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Abracadabra Money is a cross-blockchain lending platform that allows users to earn money by using their interest-bearing assets. Money earned is in the form of Magic Interest Money (MIM) tokens which are stable coins pegged to the US dollar. SPELL is the native governance and staking token of the platform.<\/p>\n\n\n\n<p>Decentralized Finance protocols have been shooting up in recent years. Along with these protocols their use cases also seem to be on a quick rise. Therefore, protocols that facilitate lending and borrowing activities using cryptocurrencies have changed the face of finance. One such magical protocol is Abracadabra Money. Let\u2019s dive right into it!&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-abracadabra-money\"><span class=\"ez-toc-section\" id=\"What_is_Abracadabra_Money\"><\/span>What is Abracadabra Money?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Abracadabra is a lending protocol that operates cross-chains using a stable coin. It allows users to borrow money using their interest-bearing assets such as <a href=\"https:\/\/zebpay.com\/au\/buy-tether\/\" target=\"_blank\" rel=\"noreferrer noopener\">USDT<\/a>, SUSHI etc. The platform uses these assets as collateral. Through which users get to borrow Magic Internet Money (MIM), Abracadabra\u2019s USD pegged stable coin. You can use interest-bearing tokens to back MIM. It can be later swapped with any other traditional stable coin.<\/p>\n\n\n\n<p>Using Abracadabra, users can make use of money their assets they own but are not using to generate money. In a specific case, it allows users to use the interest-bearing tokens obtained from staking as collateral to obtain MIM. The protocol was launched in May 2021. However, it has quickly taken over the DeFi world. Its stable coin MIM is not the 6th largest in DeFi category by market capitalization.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-abracadabra-money-work\"><span class=\"ez-toc-section\" id=\"How_does_Abracadabra_Money_work\"><\/span>How does Abracadabra Money work?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The developers have used <a href=\"https:\/\/zebpay.com\/au\/buy-ethereum\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ethereum<\/a> blockchain to host the platform. It is also bridged to other networks such as Fantom and Avalanche using AnySwap. In order to achieve layer 2 solutions, the platform uses Arbitrum and its official bridge. Consequently, increasing its throughput without compromising on its security.&nbsp;<\/p>\n\n\n\n<p>Moreover, the platform\u2019s lending features have been built using Kashi Lending Technology. This enables the platform to provide isolated lending markets. Users can use it to adjust their risk tolerance according to the collateral they decide to use. The developers have linked Abracadabra to Curve&#8217;s website to enable swapping features. This allows uses to swap their MIM stable coins for other stables. Therefore, it&#8217;s a well-connected platform and this is how it provides cross-chain lending solutions to its users.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-abracadabra-token-spell\"><span class=\"ez-toc-section\" id=\"The_Abracadabra_Token_SPELL\"><\/span>The Abracadabra Token, SPELL<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The protocol\u2019s native governance token is called SPELL. You can use the token for staking purposes and earn sSPELL. Using sSPELL, you can start using voting rights. You can also use the token to earn fees on the platform. The amount of sSPELL owned by an individual signifies their user share in the SPELL platform fee pool. Users do not have to worry about having sSPELL tokens. When the user chooses to unstake their tokens then they get SPELL tokens back, along with any additional SPELL tokens earned from the fees stake.&nbsp; <\/p>\n\n\n\n<p>The main purpose of SPELL is to facilitate liquidity on the Abracadabra Money&#8217;s lending markets. 63% of the total money supply is allocated to the liquidity mining program.&nbsp;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Abracadabra Money is a cross-blockchain lending platform that allows users to earn money by using their interest-bearing assets. Money earned is in the form of Magic Interest Money (MIM) tokens which are stable coins pegged to the US dollar. SPELL is the native governance and staking token of the platform. Decentralized Finance protocols have been [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14472,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-14471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/comments?post=14471"}],"version-history":[{"count":3,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14471\/revisions"}],"predecessor-version":[{"id":24247,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14471\/revisions\/24247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media\/14472"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media?parent=14471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/categories?post=14471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/tags?post=14471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}