How to stake SPELL on Fantom Network?
Eth Gas fees are high. But we like the spell token and want to be part of the Abracadabra.Money ecosystem. So how can we stake spell and…
Eth Gas fees are high. But we like the spell token and want to be part of the Abracadabra.Money ecosystem. So how can we stake spell and get that juicy APR while paying low gas fees?
What is SPELL?
The first is SPELL, the governance token of the platform Abracadabra.Money. Essentially this token is used for staking into sSpell to participate in revenue share staking, and governance staking.
Their tokenomics and contract address can be found in https://docs.abracadabra.money/tokens/tokenomics
sSPELL — Staked SPELL tokens
Once we have staked Spell tokens, we earn a portion of fees (interest, borrow fee, and 10% of the liquidation fee for certain markets) from the spell pool.
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.
So how can we stake our sSpell on Fantom?
We cannot directly stake Spell onto Abracadabra.Money per se, but we can swap it for interest-bearing sSpell token on Spirit Swap.
When you swap Spell for sSpell, note down the current exchange rate. That is the current value of sSpell token to Spell Token.
To see them in your wallet add the sSpell address into your Metamask wallet. You can do this by click on “Import tokens” at the bottom
Next Copy and paste the address
0xbB29D2A58d880Af8AA5859e30470134dEAf84F2B
into your metamask wallet.
If you would like to see the token on FTMScan:
https://ftmscan.com/token/0xbB29D2A58d880Af8AA5859e30470134dEAf84F2B
How does swapping for sSpell Token work?
sSPELL tokens represent your share of the SPELL fee pool. sSpell is an interest bearing token. What that means is that as time progresses, the value of sSpell to spell increases. When you swap Spell for sSpell, note down the current exchange rate. That is the current value of sSpell token to Spell Token.
When we swap back our sSpell token for Spell, then amount of Spell token we can swap for would be higher.
Risks Involved
Protocol Risk of Abracadabra
Price action risk of spell. Spell price could just drop and wipe out your earnings
Liquidity risk. Lack of Liquidity in the sSpell/Spell pool could prevent one from swapping from sSpell back to Spell
And there you have it. How to “Stake your Spell”
All above are for entertainment and educational purposes only. Not Financial Advice. DYOR. Peace. #occupydefi