Abracadabra MIM Drops 36% to $0.50 as SPELL Raises Interest Rates
Abracadabra's MIM stablecoin fell 36% to $0.50 on June 25, prompting SPELL governance to enact emergency measures as security monitor PeckShield tracked the sharp depeg. The drop marked a sudden deterioration in market confidence for the token, which is designed to maintain a value pegged to the US dollar.
SPELL governance hiked interest rates across all "cauldrons"—the vaults used to mint and burn MIM against collateral—and paused trading incentives on DeFi exchange Curve as part of the defense. The rate hikes also apply to deprecated markets, aiming to make borrowing the stablecoin more expensive and incentivize the repayment of debts to reduce circulating supply.
From the sources (2 posts)
@trueo_DEPEG WATCH 🚨 $MIM DROPS -36% TO $0.50. SPELL/ABRACADABRA TAKES EMERGENCY ACTION: INTEREST RATES HIKED ACROSS ALL CAULDRONS INCLUDING DEPRECATED MARKETS, CURVE BRIBES PAUSED, DIRECT INCENTIVES STOPPED UNTIL PEG RECOVERS.
@peckshieldalert#PeckShieldAlert $MIM has dropped -36% to 0.5