Digital Assets: Okcoin Adds Support for Spell Token and Magic Internet Money

Digital assets firm Okcoin is now offering the two crypto tokens of the ecosystem, Spell (SPELL) and Magic Internet Money (MIM), with “some of the lowest fees around.”

As noted in the update from Okcoin, here’s what each of these tokens are about, in simple terms:

What’s the Spell token (SPELL)?

As explained in the announcement, Spell (SPELL) is the native token of the ecosystem. Abracadabra aims to serve as “a decentralized finance (DeFi) platform allowing users to borrow its USD stablecoin – Magic Internet Money (MIM) – against interest-bearing tokens.”

Going on to comment on what’s so “special” about Abracadabra compared to other crypto lending platforms, Okcoin explained 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,” the team at Okcoin noted while adding that 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 main 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?

As mentioned in the update from Okcoin, 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,” the Okcoin team noted.

How does that work?

As explained by Okcoin, 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.”

To learn more about this offer, click here.

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