Abracadabra’s $6.49M loss leads to MIM stablecoin destabilization
Some Abracadabra Finance contracts were drained of $6.49m, causing its Magic Internet Money stablecoin to depeg.
Abracadabra Money, a cross-chain lending platform, has confirmed a $6.49 million exploit involving the protocol’s Ethereum cauldrons, that allow users to borrow the Magic Internet Money (MIM) stablecoin using different assets as collateral.
The MIM development team acknowledged the exploit and stated that they are investigating. They said that the protocol’s governing body plans to compensate victims through a buy-back and burn process.
The $6.49 million exploit was flagged on Tuesday by blockchain security firm PeckShield. The unknown exploiter initially funded the attack with one Ether via cryptocurrency mixer Tornado Cash, according to the security firm.
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