Abracadabra Initiates a shutdown and liquidation MIM proposal vote
BIBIBI
Article
Abracadabra Initiates a shutdown and liquidation MIM proposal vote
PANews September 30 reports that MIM the decentralized finance lending institution behind the stablecoin Abracadabra has initiated 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 the executable collateral of MIM is approximately 900000 USD, while bad debt amounts to 21000000 USD，MIM received effective backing of less than 0.04 USD per coin (more than 95%without collateral backing). As a CDP stablecoin,MIM is a liability to the protocol, and therefore has priority over the governance token SPELL. Before the MIM liabilities are fully repaid, the SPELL token has no accounting value. The protocol previously incurred cumulative losses of more than 21000000 USD due to multiple vulnerabilities, and experienced a serious...
(Read the full article via the link below)
🔗June https://www.panewslab.com/zh/articles/01a0f035-bd78-725f-ba59-41813b63c115
Key points
01
Abracadabra Initiates a proposal vote to shut down the protocol and liquidate MIM.
02
The proposal plans to liquidate the protocol's remaining assets and convert the collateral into ETH, then distribute it proportionally to MIM holders.
03
The team estimates that MIM's executable collateral is approximately 900000 USD, while bad debt amounts to 21000000 USD。
04
The report claims that MIM's effective backing is less than 0.04 USD per coin, with more than 95%without collateral backing.
05
The report claims that before MIM's liabilities are fully repaid,SPELL has no accounting value.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This is a governance vote whose outcome has not yet been determined. If the proposal advances, the protocol may sell the remaining collateral and distribute the proceeds proportionally to ETH in the form of MIM to holders. The data in the report comes from team estimates.
Why it matters to readers
MIM Holders may face lower asset backing and uncertainty regarding liquidation payouts;SPELL's remaining economic value also depends on whether MIM's liabilities are repaid.
Stablecoins do not necessarily always redeem at par. This proposal shows that understanding collateral, bad debt, and the governance vote outcome is important for assessing holding risk.
Risks and unknowns
It is not yet clear whether the proposal will pass.
The actual executable collateral, bad debt, and the amount available to MIM holders have not been independently verified.
The scale and method of executing the collateral conversion for ETH have not yet been clarified.
The original text is truncated at the mention of the June event, leaving the relevant background incomplete.
Related Developments
Loading event timeline…
Related concepts
Stablecoins
A class of interchangeable crypto assets that anchor to the same underlying value across entities; examples in the text include USDT and USDC。
An asset provided by a counterparty to guard against potential losses, which may be liquidated in the event of default to compensate the lender for its loss.
