Spell Token (Ethereum)

SPELL

SPELL is the governance and revenue-sharing token of the Abracadabra protocol.

Risk Rating
Best
$0.00
-2.40%
Summary
What we like
SPELL accrues value from lending and borrowing fees as well as liquidations. Holders can also stake to receive governance power to vote on protocol parameters.
What we like less
SPELL has negative reflexivity risks as it can be used as collateral to borrow the MIM stablecoin, which has resulted in the accumulation of bad debt.
What it means for you
Staking SPELL enables you to earn a portion of all platform fees either paid in more SPELL or its MIM stablecoin.
Information
Blockchain
  • Ethereum
Key Metrics
  • Market Cap: $116M
  • Fully Diluted Valluation: $160.5M
  • FDV / MC: 1.4
  • Ranking inside Exponential (excluding stables): #59
  • Circulating Supply: 141,676,415,675
  • Total Supply: 196,008,739,620
  • Total Supply: 210,000,000,000
  • Volume (24H): $7.3M
  • ATH: $0.04 (11/02/2021)
  • ATL: $0.00 (08/05/2021)
Risk Assessment
Best
Asset Strength

SPELL is a low-cap asset that represents the blockchain`s native currency or monetary fee used to execute transactions on the network. This asset is exposed to the underlying risks of Abracadabra, a protocol rated as Watch out.

Asset Tokenomics

SPELL has a fixed supply.

Asset Volatility

SPELL is moderately correlated to the overall market.

Dependencies

Abracadabra

Things to know about SPELL

What is SPELL used for?

SPELL is the governance and revenue-sharing token for Abracadabra. The main use of SPELL is to incentivize deep liquidity on the platform's lending markets. Stakers receive a portion of platform fees from interest, borrowing and liquidations. Token holders can also partake in the protocol's governance process to vote on proposals and protocol-level changes.

SPELL tokenomics

The max supply of SPELL is 210B tokens (initially 420B tokens with half burned post launch). The distribution of tokens includes 63% reserved for global farming incentives, 30% allocated to the team (4 year vesting schedule), 20% to team, and 7% distributed to provide liquidity on decentralized exchanges (half on Uniswap V3 and half on Sushiswap).

How does SPELL accrue value?

Abracadabra currently supports two staking methods for users to earn platform generated fees: sSPELL and mSPELL. The sSPELL pool pays out protocol revenue in additional SPELL, while the mSPELL pool pays out revenue in the MIM stablecoin. Abracadabra generates revenue from three sources: liquidation fee, borrow fee and interest payments. If the price of your deposited assets falls below your liquidation price, your position will be flagged for liquidation and will be sold at a discount to liquidators; 10% of all liquidation fees are hardcoded to be taken out and used to purchase the SPELL governance token, which are then added to the SPELL fee sharing pool. Every time a user borrows MIM from the platform, a 0.5% borrow fee is collected and distributed to the SPELL fee sharing pool. A portion of borrower interest payment, which reflects how much your debt will increase each year, also gets added to the fee sharing pool.