Abracadabra governance votes to liquidate MIM stablecoin with holders recovering ~$0.04 per $1 face value amid $21M bad debt.
DeFi & Yields ·
Abracadabra is pursuing an orderly shutdown of its protocol and MIM stablecoin through a governance vote. The proposal would liquidate remaining assets, convert collateral into ether, and distribute proceeds pro rata to MIM holders, resulting in recovery of approximately $0.04 per $1 of face value. The protocol faces roughly $21 million in bad debt against only $900,000 in recoverable backing.
The liquidation pathway reflects the breakdown of collateralization that underlay the MIM stablecoin model. Governance signaling shows overwhelming support, with the vote at 99.48% in favor and set to close on October 1. The mechanism prioritizes an orderly wind-down over sudden defaults, though the stark gap between liabilities and recoverable assets leaves creditors absorbing substantial losses.
Whether all MIM holders participate in the claim process and how efficiently assets convert to ether remain operational questions. The vote's passage does not yet determine the final recovery rate or timeline for distribution.