Abracadabra launches emergency measures as MIM stablecoin drops 50% below peg

DeFi lending platform Abracadabra is raising interest rates across all Cauldrons to encourage debt repayment after its MIM stablecoin fell to 49 cents, a 50% depeg from its $1 target.

• MIM dropped to 49 cents on Wednesday, down from 74 cents in mid-June, with a circulating supply of about $104 million.
• Abracadabra is raising interest rates across all Cauldrons to incentivize borrowers to repay debt and burn MIM supply.
• The protocol previously injected $100,000 into its Curve Finance liquidity pool on June 15 to stabilize the peg.
• The depeg highlights risks of crypto-backed stablecoins even when overcollateralized, especially in thin liquidity and bear markets.

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