Okcoin now offers the two tokens of the Abracadabra.money ecosystem, Spell (SPELL) and Magic Internet Money (MIM), with some of the lowest fees around. Here’s what each of these tokens are about, in simple terms. 🤓
- What? You can now deposit, withdraw, and trade SPELL and MIM against USD on Okcoin.
- Who? All Okcoin customers including those in the United States, except for residents of the EU, the UK, Singapore, and Brunei.
- When? Deposit, withdrawal, and trading are live for SPELL and MIM as of January 14.
What’s the Spell token (SPELL)?
Spell (SPELL) is the native token of the Abracadabra.money ecosystem. Abracadabra is a decentralized finance (DeFi) platform allowing users to borrow its USD stablecoin – Magic Internet Money (MIM) – against interest-bearing tokens. 🔮
What’s special about Abracadabra compared to other crypto lending platforms is that its lending markets are isolated one from another. This means that if one trading pair is impaired by a lack of liquidity or an issue with its smart contract, other trading pairs remain unaffected. In short, it lowers the systemic risk that a lot of DeFi services come with. Abracadabra is also a multichain protocol, which means that SPELL is available on a number of different blockchains such as Ethereum and Avalanche.
Beyond trading, SPELL has two major use cases:
- It can be staked to secure the network and earn extra Spell rewards.
- It can be used to vote on Abracadra’s governance matters.
What’s the Magic Internet Money (MIM) token?
Magic Internet Money (MIM) is Abracadabra’s USD stablecoin. The aim of stablecoins is to combine the benefits of a cryptocurrency with the stability of a fiat currency. In this case, MIM is built on top of Ethereum and its price is pegged to the USD’s by an arbitrage mechanism – which means that Abracadabra’s users have monetary incentives to keep the price stable and pegged to the USD price. How does that work?
Abracadabra users borrow MIM against other tokens. So when the price of 1 MIM rises above that of 1 USD, they can borrow more MIM and make a profit selling them at a premium. Similarly, when the price of 1 MIM dips under that of 1 USD, they can make a profit by buying MIM at a discount and pay their debt on the platform for cheaper than they would normally have. 🧠