Tokenomics
Last updated
Last updated
Abracadabra has 3 main tokens.
SPELL: the protocol's token which is used for incentivization.
sSPELL: obtained by staking SPELL tokens and used for fee-sharing and governance!
MIM: a USD pegged stable coin
Token Symbol: SPELL
Total Supply: 210,000,000,000 SPELL (initial burn halved the supply)
Native Deployements
Bridged as Multichain Wrapped assets
Bridged through Arbitrum Official Bridge
The total Supply of SPELL has been reduced from 420B SPELL to 210B SPELL by performing a unique token burn event. 210B SPELL was minted to the SPELL contract itself. The contract has no way of accessing these tokens which ultimately turns the Token Smart Contract into a Burn Address. This burn event has been publicly announced on Twitter by our main dev 0xm3rlin.
Token Burn Tx Hash: 0x01bdb6c4b22b9c8b82c9074772e95818e4680e4c8a71df5b0151e321f8048417
63% (132.3B SPELL): Global Farming Incentives
30% (63.0B SPELL): Team allocation (4 Year Vesting Schedule)
7% (14.7B SPELL): Initial DEX Offering
SPELL tokens are distributed as follows:
63% of the total supply will be used to incentivise particular LP pairs or other liquidity mining programs. Read more about the weekly allocation of SPELL incentives in the following section!
7% of the total supply has been distributed via an IDO, half on Uniswap v3 and half on Sushiswap.
30% of the total supply is allocated to the team members.
The SPELL token is used to incentivize users, in order to keep deep liquidity on our markets! The current emissions per week are:
ETH-SPELL SLP on Ethereum Mainnet: 4,688,305 SPELL
Bribes System: 35,000,000 SPELL
MIM + 2Crv Curve LP on Arbitrum: 40,000,000 SPELL
Votium (Ethereum): 55,000,000 SPELL
The new weekly benchmark is 911,501,384 SPELL tokens following the passing of this proposal here.
A Total of 134,688,305 SPELL per week are currently emitted!
Please note this graph will be updated weekly!
You can stake and lock your SPELL to get sSPELL using the Wizard Dashboard! Staking SPELL has a 24 hour time lock (Every time a user stakes SPELL token, he will not be able to withdraw for the next 24 hours).
The token address for sSPELL are as follows:
Attention: sSPELL and SPELL contracts on all networks but Arbitrum are affected by the Multichain hack. Do not buy these tokns are the funds are locked on Ethereum.
Firstly fees (interest, borrow fee and 10% of the liquidation fee for certain markets) are deposited in the SPELL fee pool in the form of SPELL tokens. When users single-side stake their SPELL tokens they receive sSPELL tokens. sSPELL tokens represent your share of the SPELL fee pool with a mechanism similar to the SUSHI/xSUSHI one. 10% of all liquidation fees are also hardcoded to be taken out and used to purchase SPELL tokens in certain markets. These SPELL tokens are also added to the SPELL fee pool.
Your sSPELL tokens are continuously compounding! When you unstake, you will receive all the originally deposited SPELL tokens plus any additional SPELL earned from the fees.
As for AIP #10, 50% of the protocol revenue will be used to buyback SPELL tokens or distributed through mSPELL staking contracts, while 50% will be used to build up a treasury.
sSPELL will also allow wizards to take part in governance as soon as the governance portal will be live.
The Magic Internet Money token is a USD pegged stable coin that is backed by interest bearing tokens!
Abracadabra always considers the MIM token to be worth 1USD. The officially-supported MIM contracts are as follows:
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0x76DA31D7C9CbEAE102aff34D3398bC450c8374c1
Since MIM is a USD pegged stable coin, it needs to remain pegged to the USD. The mechanics used rely on arbitrage, keeping it simple. This can happen in several ways.
Users that hold debt, in MIM, might notice that MIM is trading on some market below 1 USD and decide to buy some MIM at this discount to repay some of their debt. This purchase of MIM will have a price rising effect relative to their volume.
Users that hold components (valid collateral), might notice that MIM is trading on some market above 1 USD and decide to open a position and sell the MIM borrowed to put to use elsewhere. This transaction will have a price lowering effect relative to their volume.
Users that hold other cryptocurrencies, (stablecoins or not) might see MIM trading differently on two of the above mentioned markets and decide to buy MIM on one market where the price is below 1USD and sell on another where the price is either at 1USD or above. This can also happen in reverse.
In most cases, a lot of the Market to Market arbitrage is done by automated bots that constantly monitor pools for opportunities to capitalize on these price differences. This has the benefit of having price pegs being corrected quite rapidly.
MIM tokens are minted by a Multisign, deposited in the Kashi Markets smart contracts, and then injected into circulation only after the user deposits the collaterals!
The 5/10 multisign is composed of:
Poolpi (Yearn Finance)
Leo Cheng (Iron Bank)
Michael (Curve Finance)
Squirrel (Arrakis Finance)
Wicked (Abracadabra Money Contributor)
0xMerlin (Abracadabra Money Contributor)
Julien (Stakedao)
Georgiyxo (Popsicle Finance, Abracadabra Money Contributor)
Sarang (Sushiswap)
Romy (Abracadabra Money Contributor)
The multisigns can be found at the following addresses:
