The meaning and purpose of the Abrahamic covenant is made clear in the Pearl of Great Price:
And I will make of thee [Abraham] a great nation, and I will bless thee above measure, and make thy name great among all nations, and thou shalt be a blessing unto thy seed after thee, that in their hands they shall bear this ministry and Priesthood unto all nations;
And I will bless them through thy name; for as many as receive this gospel shall be called after thy name, and shall be accounted thy seed, and shall rise up and bless thee, as their father;
And I will bless them that bless thee, and curse them that curse thee; and in thee (that is, in thy Priesthood) and in thy seed (that is, thy Priesthood), for I give unto thee a promise that this right shall continue in thee, and in thy seed after thee (that is to say, the literal seed, or the seed of the body) shall all the families of the earth be blessed, even with the blessings of the gospel, which are the blessings of salvation, even of life eternal. (Abraham 2:8–11; compare Genesis 17:1–9)