Abracadabra's Magic Internet Money (MIM) stablecoin has depegged from its $1 peg by more than 50%. The DeFi platform announced emergency measures to remedy the situation, including increasing interest rates across all Cauldrons to encourage debt repayment and reduce outstanding MIM supply.
The current circulating supply of MIM is approximately $104 million. Abracadabra's priority is to restore confidence, improve market structure, and return MIM to a healthy peg.
The protocol's efforts come after it injected $100,000 into its primary liquidity pool on Curve Finance just over a week ago. However, thin and imbalanced liquidity in decentralized exchange pools remains a concern for the stablecoin, making it vulnerable to further depegging.