Abracadabra.money declared emergency measures Wednesday after its dollar-pegged stablecoin Magic Internet Money (MIM) fell roughly 50% below its $1 target. MIM was trading around $0.48 Thursday, its worst sustained depeg on record.
"We're acutely aware of the $MIM depeg and are taking emergency actions to remedy the situation,” the team posted on X.
The protocol said it would "gradually increase interest rates across all Cauldrons, including deprecated markets, to encourage debt repayment and reduce outstanding $MIM supply."
It halted direct incentives and paused Curve bribes entirely until the peg recovers.
"The current depeg creates a natural incentive for borrowers to repay debt at a discount, accelerating supply contraction and strengthening the path back to peg," the team wrote. "Our priority is simple: restore confidence, improve market structure, and return $MIM to a healthy (and liquid) peg."
