PANews, September 30: Abracadabra, the decentralized finance lending platform behind the MIM stablecoin, has launched a proposal vote to shut down the protocol and liquidate MIM. The proposal plans to liquidate the protocol’s remaining assets, convert collateral into ETH, and distribute proceeds proportionally to MIM holders. The team estimates that the enforceable collateral backing MIM is approximately $900,000, while bad debt amounts to $21 million, resulting in effective backing for MIM of less than $0.04 per token (over 95% unbacked). As a CDP stablecoin, MIM represents a liability to the protocol and thus has higher priority than the governance token SPELL. Until MIM liabilities are fully settled, SPELL tokens hold no accounting value.
Abracadabra Proposes Shutdown and Liquidation of the MIM Stablecoin
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Summary
Abracadabra proposes a protocol update to shut down and liquidate the MIM stablecoin. Remaining collateral will be converted to ETH and distributed to MIM holders. Executable collateral is estimated at $900,000, while bad debt totals $21 million. MIM’s effective support is below $0.04, with 95% of its supply uncollateralized. Due to DeFi exploit risks, MIM has been classified as a liability ahead of SPELL. Until MIM is settled, SPELL holds no accounting value.
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