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The Abracadabra.money is a platform for decentralized lending of money. The platform’s ecosystem uses the ERC-20 token SPELL as a governance and reward token. Abracadabra mints Magic Internet Money (MIM), a stablecoin pegged to the USD, using interest-bearing tokens like CRV, CVX, and YFI as collateral.
Owners of SPELL tokens have more influence over Abracadabra. Money and the opportunity to earn interest on the profit from lending. A total of 196 billion Spell Tokens are available, with 30% going to the currency’s creators and 63% going to global farming incentives. The remaining 7% goes to DEX trade platforms.
What is the Spell (SPELL)?
The inefficiencies that plagued DeFi1.0 have returned with the debut of version 2.0, with capital inefficiency at the forefront. This issue is addressed by the lending protocol known as Abracadabra Money by using interest-bearing tokens like yvWETH, yvUSDC, and xSUSHI as collateral to borrow Magic Internet Money or MIM.
MIM is a stablecoin that replicates the stability of the US dollar and performs the same functions as almost all other stablecoins, such as DAI and Tether. Cash doesn’t have to be kept in the bank collecting dust with Abracadabra Money.
There are two principal tokens operating in the ecosystem of the Abracadabra protocol. The first is SPELL, the platform’s governance token, and the second is MIM (Magic Internet Money). The main advantage of the Spell Token is staking, among other things. SPELL can be staked, like most other tokens on the Ethereum platform, to get various advantages.
The number of Spell Tokens you possess will decide your influence over changing aspects like liquidation costs, collateral, and total value locked since the Abracadabra system is decentralized.
When Spell Tokens are staked, users receive a cut of the platform’s trading commissions. These charges include interest, typically made by users who borrow MIM. The fee is split as follows: 75% of it goes to token holders, 20% goes to the governance treasury to support liquidity pools, and the remaining 5% is held in a multi-sig treasury to assist reduce risk when market conditions deteriorate.
How to Buy SPELL Tokens in India?
By following a few simple steps, you can buy SPELL tokens in India via WazirX, India’s most trusted and widely used cryptocurrency exchange.
Now, you can buy SPELL tokens using P2P trade. Here are all your questions answered about P2P.
Step 1 – Sign-Up on WazirX
To start trading the SPELL token, you should first create your account by signing up on the WazirX platform. Or you can directly Log-in if you already have an account with WazirX.
Here’s a guide explaining how to open an account on WazirX.
Step 2- Verify your email account and set up your account security.
The following step is to verify your email address. After signing up, you’ll receive a verification link on your email address by which you’ve just created your account.
On clicking on the link, you’ll have two options to assure the security of your account – the authenticator app and mobile SMS (as shown in the image below)
Note: The authenticator app is a more secure way to stay safe when compared to mobile SMS because there’s a risk of delayed reception or SIM card hacking.
Step 3 – Complete the KYC.
After selecting the appropriate country, complete the KYC process.
Note: Without completing your KYC, you will be unable to trade P2P or withdraw funds on the WazirX app.
Step 4 – Add funds to your WazirX account through P2P.
After linking your bank account to your WazirX account, you can buy USDT through P2P to the WazirX wallet. The USDT will work as funds to buy other coins.
Step 5 – Buy SPELL on WazirX
You can purchase SPELL tokens using P2P trade through WazirX. Check the SPELL to INR rate from here and SPELL to USDT here.
After logging in to your WazirX account, you can select USDT from the “Exchange” tab. You can see all the price charts, order book data, and an order input form on the right side of the screen.
Click “Buy” after entering the amount and checking the total USDT amount to be paid.
Your order will be placed according to the price you have input. A seller willing to sell at a price will be notified, and then you can exchange the tokens using P2P.
It might take a few minutes for the order to be completed, but as soon as it is executed, you will receive the SPELL coins you purchased in your WazirX wallet.
Happy Trading!
Frequently Asked Questions
What Is USDT?
USDT is a fiat-collateralized stablecoin which is pegged 1:1 to the U.S. Dollar. Each USDT is backed by one US dollar worth of assets and can be used like any other token on the chain it's issued on. Tether provides transparency, stability, and low fees for users, bridging the gap between fiat currencies and blockchain assets.
How To Create USDT Wallet?
To create a USDT wallet, you have two options. Either you can choose:
- a crypto exchange or
- a dedicated wallet provider.
How Does Tether USDT Work?
When a user puts fiat money into Tether's reserve, using that money to buy USDT instead of fiat, Tether then issues tokens representing that same digital amount. The USDT can then be shared, stored, or traded. According to a 1-to-1 dollar parity, if a customer deposits $100 in the Tether reserve, they will receive 100 Tether tokens. However, when users redeem Tether tokens for fiat money, the coins are destroyed and taken out of circulation.
How To Convert USDT To BTC?
To convert USDT to BTC, you can use the WazirX web/mobile app. First, go to the "exchange" option and select BTC from the list of tokens available in the USDT market. Then, fill out the buy order form and click on "Buy BTC".
How To Buy USTD In India?
To purchase Tether (USDT) in India, the best way is to register on a licensed and regulated Crypto exchange that lists and offers USDT trading. Any such exchange that has listed Tether on its platform will allow for the exchange of INR for the stablecoin or other digital assets. Deposits of INR can be made via various secure methods such as Bank Transfer, Debit/Credit Card, and UPI deposit for quick purchase of USDT. Here's a step by step guide on the same: https://wazirx.com/blog/how-to-buy-tether-usdt-coin-in-india/
What Is USDT P2P Wazirx?
P2P (peer-to-peer) on WazirX is a feature that enables users to buy or sell USDT directly from/to other users on the WazirX platform without the involvement of a third-party intermediary.
How To Sell USDT In India?
The most popular ways of converting USDT to cash are through leading crypto exchanges or peer-to-peer platforms, which provide different payment options like bank account transfers, card payments, and UPI. USDT can be easily exchanged for other Crypto or fiat on licensed crypto exchanges such as WazirX. Many top exchanges support this digital asset because of its prominence and market share.
How To Withdraw USDT To Bank Account?
To withdraw USDT to a bank account, you can transfer your USDT to an exchange that supports the withdrawal of USDT to a bank account. Then, you can initiate a withdrawal request and provide the necessary information, such as the bank account number, name, etc. The withdrawal process may take a few days to complete.
Where To Buy USTD?
You can buy Tether (USDT) in India at a crypto exchange like WazirX. It is trusted by almost 1.3 Crores Indians and is considered one of the best exchanges in India that works continuously to improve its features and user experience.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
