Abracadabra Proposes Shutdown After MIM Loses Path Back to Dollar Peg
The plan would liquidate collateral and distribute proceeds after repeated attacks left Magic Internet Money severely undercollateralized.
Abracadabra’s community has proposed liquidating the protocol and ending operations after repeated attacks left Magic Internet Money (MIM) severely undercollateralized and without a viable path back to its peg.
The proposal estimates that about $900,000 in collateral can currently be used to support MIM, while roughly 22 million tokens circulate outside protocol addresses. That implies a shortfall of about $21 million and backing worth less than $0.04 per MIM.
Under the plan, the team would seek to recover collateral from Abracadabra’s Cauldrons, convert the assets into Ether (ETH) and distribute the proceeds proportionally between borrowers and MIM holders. MIM holders would initially receive about $0.04 per token under the current estimate.
After the liquidation, Abracadabra would stop operating. Positions held in contracts that cannot be modified would remain available for users to exit on-chain.
