Abracadabra MIM Stablecoin Collapses to $0.49, Triggers Emergency Rate Hikes

This week, Abracadabra's MIM stablecoin plunged to approximately $0.49, losing over 50% of its $1 peg. With a circulating supply of roughly $104 million, the protocol triggered emergency measures including raising interest rates across all Cauldrons and pausing Curve liquidity incentives to incentivize debt repayment and reduce MIM supply.

A $100,000 liquidity injection into Curve on June 15 failed to stabilize the peg, with the price breaking again within days. Liquidity imbalance in Curve Finance pools, exacerbated by broader market weakness, remains the structural challenge driving MIM's instability.