Spell Token
Crypto Overview
Project Overview
Spell Token (SPELL) is the governance token for Abracadabra.money, a decentralized lending protocol that allows users to deposit interest-bearing assets as collateral to borrow a stablecoin called Magic Internet Money (MIM).
Purpose and Utility
The primary utility of SPELL is governance rights over the Abracadabra protocol and earning protocol fees through staking. Token holders can vote on protocol parameters and receive a portion of the protocol's revenue when they stake their SPELL tokens.
Business Model Analysis
The core business model revolves around lending and borrowing, with users providing collateral to mint MIM stablecoins. The protocol generates revenue through liquidation fees and borrowing fees. This model fundamentally involves interest-bearing lending, which is not aligned with Islamic financial principles when not done as an act of charity.
Real-World Adoption
Abracadabra has maintained significant usage within the DeFi ecosystem, with substantial Total Value Locked (TVL) across multiple blockchain networks. The platform actively facilitates lending and borrowing operations, with its MIM stablecoin being widely used in DeFi protocols.
Development Activity
The project maintains active development with regular updates to the protocol and governance proposals. The team continues to expand the platform's capabilities and integrate with various DeFi protocols.
Token Distribution
SPELL tokens were distributed across several categories including team allocation, treasury, and public sale. The project implemented vesting schedules for team and advisor allocations to prevent immediate selling pressure.
Crypto Impact
To assign a comfort level investing in Spell Token from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Spell Token.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.