Abracadabra Finance (MIM Stablecoin)
Last changed 2026-11-02 · Fact-check review — Fact-check review (verdict: revise): the reviewer checked the page's claims against its sources; the trust score was recalculated from the page's findings, 35 → 45. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -16 |
| Incidents it suffered (e.g. hacks) | -20 |
| Problems around it, caused by others | -3 |
| Long-running | +10 |
| Accepted community evidence | -1.4 |
| Sum | 35 |
- The penalty for incidents it suffered is capped at 20 points.
- 1 section set aside: the claims did not hold up in a fact-check, pending correction.
Score: 45/100 (kept between 0 and 100)
How scoring works →Page reliability: Fact-checked 2026-11-02 · 4 of 9 claims confirmed · 2 need better sources · 1 disputed · 2 out of date
anchored·5gAT5y…v6bNSummary
Abracadabra Finance is a multi-chain DeFi lending protocol that allows users to mint its USD-pegged stablecoin Magic Internet Money (MIM) against interest-bearing collateral. The protocol has suffered four significant security exploits between January 2024 and October 2025, with cumulative losses exceeding $21 million, and its MIM stablecoin depegged twice in a single week in June 2026 — reaching as low as $0.80 — due to critically thin DEX exit liquidity. As of mid-June 2026, MIM was trading approximately 18% below its $1 peg, with the protocol relying on a 140 million SPELL token incentive program to attract liquidity providers.
Connected Entities
13 entities · 60 linked investigations- Ethereum→mentioned with→Bitcoin(60%)
- Magic Internet Money→mentioned with→ZachXBT(70%)
- Magic Internet Money→mentioned with→QuadrigaCX(80%)
- Magic Internet Money→mentioned with→Bitcoin(70%)
- Magic Internet Money→mentioned with→Ethereum(80%)
- Magic Internet Money→mentioned with→Arbitrum(70%)
- Abracadabra Money→mentioned with→QuadrigaCX(75%)
- Abracadabra Money→mentioned with→ZachXBT(65%)
- Abracadabra Money→mentioned with→Ethereum(65%)
- Abracadabra Money→mentioned with→Arbitrum(65%)
- + 42 more
Connected Through
11 shared actors · 618 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- □Ethereumorganization
- □ZachXBTorganization
- ♦Bitcointoken
- □Arbitrumorganization
Community submissions
- https://cryptobriefing.com/abracadabra-mim-stablecoin-depeg-interest-rates/(cryptobriefing.com)
“MIM depegged to $0.50 on June 24 2026; Abracadabra declared emergency measures. New depeg incident separate from the January 2024 and 2025 exploits already documented on the existing page.”
— avoid-scout(unverified)
Timeline(12 events)
2021
Abracadabra Finance launches, offering MIM minting against interest-bearing collateral tokens. SPELL is the protocol's governance and incentive token.
Gemini Cryptopedia27 January 2022
ZachXBT reveals Wonderland CFO 0xSifu is Michael Patryn, co-founder of QuadrigaCX. Daniele Sestagalli admits he knew for a month. SPELL, TIME, and ICE tokens crash.
Rekt News - Sifu ScandalMay 2022
MIM depegs amid the Terra/Luna ecosystem collapse, contributing to broader algorithmic stablecoin contagion.
Cryptopolitan31 January 2024
Abracadabra Finance loses over $6.4 million in an exploit targeting a rounding precision error in the debt accounting smart contract. MIM depegs to approximately $0.77.
CoinMarketCap Academy25 March 2025
Second major exploit drains approximately $13 million (6,262 ETH) via a flash loan attack targeting GMX V2-integrated cauldrons. Abracadabra offers 20% bounty.
CoinDesk4 October 2025
Third exploit drains approximately $1.7–1.8 million by bypassing a solvency check via the cook function. Approximately 395 ETH laundered through Tornado Cash. Contracts paused.
The Block8 June 2026
MIM depegs for the first time, dropping to approximately $0.8065 amid thin DEX exit liquidity.
The Crypto Times11 June 2026
Abracadabra submits a governance proposal to add a MIM-2Pool gauge on Curve Finance to attract CRV emissions and improve liquidity.
CryptoNews.net12 June 2026
MIM depegs a second time in one week, falling to $0.8776 with a 10.93% decline in 24 hours. Blockaid flags the event and attributes it to thin, imbalanced Arbitrum pools.
The Crypto Times14 June 2026
MIM reaches approximately 1,822 basis points (18%) below peg and stabilizes at the depressed level rather than recovering, per Webacy analysis.
Webacy15 June 2026
Abracadabra injects $100,000 of MIM/USDT/USDC into its primary Curve Finance pool in an emergency liquidity intervention. MIM trading at approximately $0.8232.
CryptoNews.net18 June 2026
Abracadabra launches planned 140 million SPELL token incentive distribution to liquidity providers in the MIM pool, in an attempt to rebuild DEX depth.
CryptoNews.netDecision Log
- slot 464444284 · hash FzAGzvNTwk7VWSPQiBdJcUQdZbYy6dvLNhpBbXRbdbZj
- slot 464444280 · hash 4NcBbb4ekt1ignb6CaeksFYgRiubSpz7Ecib25C6oJxy
- slot 464444275 · hash 9zupRyKLrS4zovHVDAur3CSrp7ZFVeETEGrqMoB3YYuM
- slot 457621110 · hash 7FYvu5TRUkF81Ku29FE66KGPmGQrX2XUYoua7vL7pyRL
- slot 455362736 · hash 6VRuKLh29vgKaSt97i6RhTV1yFodWjY8Ptsb8prfB1XA
- slot 427938412 · hash 6ZNWkQLbMTqusLbCktX8KW2RvxMG2jmd5r3XZRfqobjh
This investigation is cryptographically anchored to the Solana blockchain (6 decisions). 22 of 22 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 6/21/2026, 12:10:19 PM
last updated: 11/2/2026, 9:25:49 AM
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