MIM stablecoin falls to around $0.50 as Abracadabra Finance rolls out emergency response

Abracadabra Finance said it is responding to the loss of MIM's peg by activating emergency measures aimed at shrinking supply. Beginning today, the protocol will progressively raise interest rates across all Cauldrons, including markets that have been deactivated, to encourage borrowers to repay debt and reduce MIM in circulation. The protocol noted that the depeg itself creates a discount-driven incentive for borrowers to buy back MIM and repay, potentially accelerating the contraction in supply. Until MIM returns to its peg, Abracadabra Finance will pause direct incentive programs and suspend Curve bribes. The team said it is assessing further recovery options and will provide updates as they are finalized. Market data shows MIM trading at $0.5027, down 36.65% over the past 24 hours.