# Abracadabra Proposes Liquidation as MIM Holders Face 96% Shortfall

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/25597
Published: 2026-09-30T02:35:07.000Z
Updated: 2026-09-30T02:35:07.000Z
Section: Technology

> The proposal estimates about $900,000 in recoverable assets against $21 million in bad debt, leaving MIM holders roughly 4 cents per $1 of face value.

Abracadabra has proposed liquidating its decentralized lending protocol, a move that would leave MIM stablecoin holders with an estimated 96% recovery shortfall if approved.

A Snapshot vote would determine whether the protocol enters liquidation. The proposal estimates that about $900,000 in assets can be recovered against roughly $21 million in bad debt.

Under the plan, MIM holders would receive approximately $0.04 for each $1 of face value. The payout would be made proportionally from the assets recovered during the liquidation process.

If the vote passes, Abracadabra would convert its remaining collateral into Ether (ETH) and use the proceeds for repayment.