Abracadabra Slashes Rates in Bid to Stabilize Tumbling MIM

Abracadabra's Magic Internet Money (MIM) stablecoin has plunged below its $1 target, prompting emergency measures from the DeFi lending protocol.

The MIM price has dropped by over 50% in recent days, putting pressure on Abracadabra to act. In response, the protocol has raised interest rates across all Cauldron markets, including deprecated ones, to encourage debt repayment and reduce outstanding MIM supply.

Abracadabra's team said it is 'acutely aware' of the depeg and will take emergency actions to remedy the situation. The rate hike aims to make borrowing more expensive, incentivizing borrowers to repay their debts sooner and burn or remove MIM from circulation.

The plan covers both live and deprecated markets, so older debt positions remain part of the response. Abracadabra has not set a fixed end date for the emergency changes, but the team said it is reviewing more recovery plans and will share them once finalized.