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Spending LC on the 3 LC spin during the Rainbow Riot once you are level 37 is best. You’ll get about one set item for every 20-25 LC and every set item you get will be a major improvement for you. Saving for a new headset is also good. It isn’t worth spending LC on anything else except the golden chili which you should buy before any headset since it speeds up all your battles.
Mastery is probably the worst thing to spend LC on unless you have nothing else to spend it on since you can buy mastery with snoutlings. I wouldn’t waste any LC on the golden cauldron or anvil because you don’t need them. It isn’t very hard to get as many snoutlings as you like by playing Star Reef Castle on auto play so you can buy all the potions and veggie cakes you need, but I do see some value in the cauldron. I personally don’t like to waste my time gathering ingredients and creating potions or veggie cakes.