Abracadabra proposes orderly wind-down of MIM stablecoin and protocol following multiple hacks that left MIM underbacked.
DeFi & Yields ·
Abracadabra has put forward a proposal for an orderly wind-down of its MIM stablecoin and protocol following multiple security breaches that resulted in MIM becoming underbacked and unable to restore its peg. The protocol intends to unwind operations in an organized manner, with the goal of returning reclaimed collateral to MIM holders and protocol users.
The underbacking stems from the security incidents, which depleted reserves needed to maintain the stablecoin's backing. Rather than attempt recovery under current conditions, the proposal charts a path toward liquidating the protocol's assets and distributing the proceeds according to claimant status.
The proposal's passage and execution timeline, as well as the precise recovery rate for affected parties, remain to be determined through the governance process.