TREE NEWS update: Abracadabra is winding down its MIM stablecoin, with a Snapshot vote closing Wednesday to liquidate most of the lending protocol’s remaining collateral into ether after the team found about $21 million of bad debt. Holders are being offered roughly 4 cents per token.
Abracadabra Moves to Shut Down MIM Stablecoin, Offering Holders About 4 Cents per Token
A governance vote to liquidate collateral into ether marks the end of a once-prominent stablecoin, and the roughly 4-cent offer crystallizes how little residual value remains after bad debt is accounted for. The outcome matters most for MIM holders weighing the tender against whatever secondary-market bids exist, and for other lending protocols where collateral assumptions and liquidation incentives carry similar tail risk. Whether the vote passes and how the remaining collateral is actually converted are the open questions; the wider read is that orderly wind-downs, not recoveries, are now the realistic endgame for stressed stablecoin issuers.
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