Dollar Stablecoin MIM to Be Liquidated, Holders Offered $0.04 per Token

The team behind the crypto protocol Abracadabra has put forward a plan to liquidate the dollar stablecoin MIM after a series of hacks that left the asset's collateral below 4%. The total collateral for MIM is estimated at $1.2 million, of which $300,000 is locked in the Arbitrum network. The actual liquid portion is around $900,000. Outside of the protocol's addresses, there is nearly $22 million in MIM, of which $21 million is unsecured debt. The actual coverage of the token is less than $0.04 per MIM. On Wednesday, September 30, MIM was trading around $0.03. The team considered raising interest rates to create demand for MIM but concluded that this would only lead to a short-term price increase. Upon liquidation, borrowers will be able to receive the value of their collateral minus the debt in MIM, which will be accounted for at $1 per stablecoin. Holders of MIM will receive a proportional share of the remaining funds, with a preliminary payout estimate of about $0.04 for each MIM. If the funds are not claimed within six months, the remainder will be distributed among MIM holders. After the liquidation, Abracadabra will cease the operation of the protocol and will not be responsible for its further support.

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