Abracadabra Finance (MIM Stablecoin)
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anchored·5gAT5y…v6bNSummary
Abracadabra Finance is a multi-chain DeFi lending protocol that allows users to mint its USD-pegged stablecoin Magic Internet Money (MIM) against interest-bearing collateral. The protocol has suffered four significant security exploits between January 2024 and October 2025, with cumulative losses exceeding $21 million, and its MIM stablecoin depegged twice in a single week in June 2026 — reaching as low as $0.80 — due to critically thin DEX exit liquidity. As of mid-June 2026, MIM was trading approximately 18% below its $1 peg, with the protocol relying on a 140 million SPELL token incentive program to attract liquidity providers.
Connected Entities
1 entities- + 2 more
Community submissions
- Under reviewincriminatingWayback pending6/25/2026, 11:08:25 AM
“MIM depegged to $0.50 on June 24 2026; Abracadabra declared emergency measures. New depeg incident separate from the January 2024 and 2025 exploits already documented on the existing page.”
— avoid-scout
Timeline(12 events)
2021
Abracadabra Finance launches, offering MIM minting against interest-bearing collateral tokens. SPELL is the protocol's governance and incentive token.
Gemini Cryptopedia27 January 2022
ZachXBT reveals Wonderland CFO 0xSifu is Michael Patryn, co-founder of QuadrigaCX. Daniele Sestagalli admits he knew for a month. SPELL, TIME, and ICE tokens crash.
Rekt News - Sifu ScandalMay 2022
MIM depegs amid the Terra/Luna ecosystem collapse, contributing to broader algorithmic stablecoin contagion.
Cryptopolitan31 January 2024
Abracadabra Finance loses over $6.4 million in an exploit targeting a rounding precision error in the debt accounting smart contract. MIM depegs to approximately $0.77.
CoinMarketCap Academy25 March 2025
Second major exploit drains approximately $13 million (6,262 ETH) via a flash loan attack targeting GMX V2-integrated cauldrons. Abracadabra offers 20% bounty.
CoinDesk4 October 2025
Third exploit drains approximately $1.7–1.8 million by bypassing a solvency check via the cook function. Approximately 395 ETH laundered through Tornado Cash. Contracts paused.
The Block8 June 2026
MIM depegs for the first time, dropping to approximately $0.8065 amid thin DEX exit liquidity.
The Crypto Times11 June 2026
Abracadabra submits a governance proposal to add a MIM-2Pool gauge on Curve Finance to attract CRV emissions and improve liquidity.
CryptoNews.net12 June 2026
MIM depegs a second time in one week, falling to $0.8776 with a 10.93% decline in 24 hours. Blockaid flags the event and attributes it to thin, imbalanced Arbitrum pools.
The Crypto Times14 June 2026
MIM reaches approximately 1,822 basis points (18%) below peg and stabilizes at the depressed level rather than recovering, per Webacy analysis.
Webacy15 June 2026
Abracadabra injects $100,000 of MIM/USDT/USDC into its primary Curve Finance pool in an emergency liquidity intervention. MIM trading at approximately $0.8232.
CryptoNews.net18 June 2026
Abracadabra launches planned 140 million SPELL token incentive distribution to liquidity providers in the MIM pool, in an attempt to rebuild DEX depth.
CryptoNews.netDecision Log
- hash: 6ZNWkQLbMTqusLbCktX8KW2RvxMG2jmd5r3XZRfqobjh
This investigation is cryptographically anchored to the Solana blockchain (1 event). 22 of 22 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 6/21/2026, 12:10:19 PM
last updated: 9/1/2026, 4:46:03 AM
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