Stablecoins and their use in Decentralized Finance (DeFi) have played a key role in the cryptocurrency bull market of 2021, as they allow investors to participate in the ever-growing number of protocols that offer high-staking pools. efficiency and facilitate the transaction process without the need to use a centralized exchange.
The Abracadabra.money DeFi protocol and its native SPELL token is a project that has seen significant adoption thanks to its goal of creating a truly decentralized ecosystem and an asset-backed stablecoin.
Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $ 0.0114 on October 15, SPELL’s price rose 178.55% to a new high of $ 0.035 on November 1 as its 24-hour trading volume reached $ 109.82 million. .
Three reasons why SPELL is attracting the attention of DeFi users are the growth of Magic Internet Money (MIM) as a fully decentralized, multi-chain stable coin, many cross-chain integrations that have expanded the reach of MIM and SPELL throughout the ecosystem and the token’s governance and tokenomic structure.
Decentralized growth of stablecoin
One of the main factors attracting the attention of active DeFi users is Abracadabra’s native Magic Internet Money stablecoin, which is fully guaranteed and issued by depositing interest-bearing assets on the DeFi protocol.
The growing popularity and adoption of MIM can be seen by the growing total value locked in to Abracadabra, which reached a record high of $ 4.15 billion on November 1 according to data from Defi Llama.
MIM’s outstanding supply has also grown steadily, reaching $ 1.933 billion according to data from CoinMarketCap. The most recent expansion is largely due to the expansion of assets that can be pledged as collateral to Mint MIM, which now includes popular tokens such as Shiba Inu (SHIB), FTX Token (FTT), Olympus Wrapped (OHM ) and Fantom (FTM).
Cross-chain integrations extend the reach of SPELL
A second reason inv is taking a closer look at SPELL is its expanding ecosystem which recently added cross-chain support for several blockchain networks, including Fantom and Binance Smart Chain (BSC).
BSC is the most recent addition to the Abracadabra ecosystem after the community voted to add support for the network in a vote that ended on October 30.
♂️!
A new governance proposal has come out to decide whether we should deploy https://t.co/gHWEQJMoOc on #BSC!
The vote will last 2 days!
Be sure to vote here https://t.co/9QhH8kAaz8 pic.twitter.com/V47hDgKhI6
– ♂️ (@MIM_Spell) October 27, 2021
Other blockchain protocols currently supported by Abracadabra include Ethereum (ETH), Arbitrum, and Avalanche (AVAX), and the platform also benefits from several cross-protocol partnerships, including integrations with Convex Finance (CVX), Yearn Finance. (YFI), Curve Finance (CRV) and SushiSwap (SUSHI).
Related: Magic Internet Money exceeds $ 1 billion and targets MakerDao
Favorable tokenomics and a decreasing circulating supply
Another factor attracting the attention of DeFi investors is the symbolic structure of SPELL which includes governance votes on issues to control inflation.
The team behind SPELL regularly monitors the issuance schedule in the various DeFi pools in its ecosystem to ensure that new tokens are created and used in the most beneficial way for the protocol and holders.
Due to increasing adoption and rising prices, a large number of tokens originally intended to be minted are no longer needed. The team therefore decided to reduce the issuance schedule by 20% from November 1. This effectively removed 8.7 billion SPELL tokens. of the current circulating power supply.
♂️!@ 0xM3rlin cast the spell “Incendio”!
8.7B $ SORT were burned!
Learn more about the approved proposal
https://t.co/6sunolqzSa https://t.co/uGKm2kfYtv– ♂️ (@MIM_Spell) November 1, 2021
Going forward, the outlook for the project remains optimistic and the team also plans to further integrate SPELL and MIM into the Fantom ecosystem and also offer new staking opportunities in Arbitrum and Avalanche.
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