Abracadabra Finance Implements Emergency Measures as MIM Stablecoin Depegs to $0.50

According to reports from Mars Finance, Abracadabra Finance has initiated emergency response protocols following a severe depegging event of its Magic Internet Money (MIM) stablecoin. As of the latest market data, MIM is trading at approximately $0.5027, representing a 36.65% decline within a 24-hour period. To stabilize the asset, the protocol is progressively increasing interest rates across all "Cauldrons," including deactivated markets, to incentivize debt repayment and reduce circulating supply. The team highlighted that the current discount provides a financial incentive for borrowers to close positions. Furthermore, Abracadabra has suspended direct incentives and Curve bribes until the peg is restored. The protocol continues to evaluate additional recovery strategies to mitigate the impact of the volatility and restore confidence in the ecosystem.