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2. It adds that 'flavor' to the mix. Using crushed boilies or whole boilies of the type you are fishing with helps 'prime' the fish to eat that kind of bait. That being said, if the fishies aren't really feeling the flavor you are trying to use during that time it won't help at all. When crafting a groundbait use a basic all around recipe for the species you are after as a base, then tune it with boilies, additives, and maybe attractants to tune the fish to your offerings.
I see this thread is still getting responses. I have a few important questions for you.
1.) Does does groundbait affect attraction while spin fishing?
2.) What effect does crushed/whole boilies have in groundbait?