Abracadabra launches proposal vote to shut down the protocol and liquidate MIM

PANews reported on September 30 that Abracadabra, the decentralized finance lending institution 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 the collateral into ETH, and distribute it proportionally to MIM holders. The team estimates that MIM's executable collateral is about $900,000, while bad debt amounts to $21 million, leaving MIM's effective backing below $0.04 per token (more than 95% uncollateralized). As a CDP stablecoin, MIM is a liability to the protocol, so it takes priority over the governance token SPELL. Until MIM's liabilities are fully repaid, SPELL tokens have no accounting value. Previously, the protocol had accumulated losses of over $21 million from multiple exploits and experienced a severe depeg in June. If the proposal passes, it will formally enter the liquidation and distribution process.