Abracadabra Proposes Shutting Down MIM Stablecoin and Paying Out Four Cents

Abracadabra Proposes Shutting Down MIM Stablecoin

The Abracadabra protocol has proposed winding down its MIM stablecoin, which has lost its peg to the US dollar. The proposal would pay out roughly four cents on the dollar to MIM holders.

MIM's deposits peaked at $6.4 billion in January 2022 but have since declined, with about $22 million held outside of protocol addresses. Abracadabra claims that MIM is a liability and senior to its governance token, SPELL, which would be written down to nothing under the proposal.

The team behind Abracadabra had previously attempted to raise interest rates to force liquidations and push MIM back toward its peg but has now rejected this approach. Instead, it proposes distributing ether pro rata to borrowers and MIM holders based on a snapshot of balances taken no earlier than October 15.