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      Abracadabra Proposes Liquidation Agreement for MIM Stablecoin Holders

      The decentralized lending protocol Abracadabra has initiated a vote on the Snapshot platform to propose the liquidation of the entire protocol. This plan involves converting the remaining collateral assets into Ethereum (ETH) and compensating holders of the MIM stablecoin proportionally. The proposal comes as the protocol faces significant financial challenges, with estimated recoverable assets of approximately 900,000 USD against bad debts that could reach up to 21 million USD.

      If the proposal is approved, MIM holders are expected to recover only about 0.04 USD for each 1 USD of face value. This stark recovery rate highlights the financial difficulties faced by the protocol and the impact on its users. Should the vote pass, Abracadabra will officially commence the liquidation process, converting the remaining collateral into ETH to facilitate compensation for MIM holders.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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