Abracadabra’s $6.49M loss leads to stability of MIM stablecoin.
Abracadabra Money, a cross-chain lending platform, has confirmed a $6.49 million exploit involving users of the Magic Internet Money (MIM) stablecoin using various assets as collateral, including the protocol Ethereum's CoinDesk.
The MIM development team acknowledged the exploit and stated that they are investigating. He said the protocol's governing body plans to compensate the victims by buying them back and burning them.
We are aware of an exploit involving certain gases on Ethereum.
Our engineering team is investigating and investigating the situation.
As much as possible, the DAO treasury buys MM to burn it back from the market.
More updates are coming.
— ♂️ (@MIM_Spell) January 30, 2024
The $6.49 million exploit was reported Tuesday by blockchain security firm PeckShield. The unknown exploiter initially funded the attack with 1 Ether (ETH) through the cryptocurrency mixer Tornado Cash, the security firm said.
Less than an hour after the exploit was announced, the M.M.I.M. Algorithm The US dollar peg stablecoin fell to $0.77, losing the dollar peg and recovering from its current level of $0.94, according to CoinMarketCap data.
A report from blockchain security firm CertiK stated that the exploit may have been caused by a “public problem”. When the attacker repeatedly called the “userBorrowPart()” function, followed by “return()” of the protocol v4 cauldrons, the attacker repeatedly repaid the loan and somehow allowed them to withdraw money from the contract.
Related: Alameda-linked wallets open $2.3-million credit facility on Abracadabra
In 2022, Magic Internet Money was created due to the collapse of the Terra ecosystem. In August, the protocol raised interest rates on the coin by 200% in an effort to manage risk from the Curve protocol.
