Abracadabra takes emergency action as MIM stablecoin depeg worsens
The protocol is raising interest rates across all Cauldrons to encourage debt repayment and reduce supply.
Decentralized finance platform Abracadabra said Wednesday that it launched emergency measures after its crypto-collateralized stablecoin, Magic Internet Money (MIM), fell 50% below its $1 peg.
“We’re acutely aware of the MIM depeg and are taking emergency actions to remedy the situation,” the team said on Wednesday.
It said effective immediately, it will begin gradually “increasing interest rates across all Cauldrons, including deprecated markets, to encourage debt repayment and reduce the outstanding MIM supply.”