Defi Protocol Abracadabra’s Stablecoin MIM Briefly Slides to $0.91 During the Crypto Market Rout – Altcoins Bitcoin News

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One sta­ble­coin, mag­ic inter­net cur­ren­cy (MIM) fell below $1 per cent on Sat­ur­day amid the chaos in the cryp­tocur­ren­cy mar­ket. It briefly trad­ed at $0.914 each unit. The Abra­cadabra-issued sta­ble­coin drop­ping in val­ue fol­lows the recent ter­rausd (UST) fail­ure and USDD’s recent volatil­i­ty last week.

Stablecoin Magic internet money loses $1 parity but gains strength after falling to $0.91

The entire globe wit­nessed a sta­ble­coin known as Ter­rausd (UST), drop below a U.S. dol­lar in val­ue mid-May 2022. It was an algo­rith­mic sta­bil­i­ty coin called Ter­rausd. In fact, UST’s fail­ure oblit­er­at­ed the entire Ter­ra blockchain ecosys­tem of tokens until they were near worthless.

Last week, Bitcoin.com News report­ed on Tron’s algo­rith­mic sta­ble­coin USDD and how it dropped to a low of $0.95 per unit. Tron Reserve DAO added sig­nif­i­cant quan­ti­ties of USDC and TRX reserves to ensure that the token was not overcollaterized.

Although the funds were added, USDD dropped to $0.948 per Unit on June 18. The cryp­to token can cur­rent­ly be exchanged for $0.964 as of the writ­ing of this arti­cle at 06:05 (ET)

On the same day, the Abra­cadabra-issued sta­ble­coin mag­ic inter­net mon­ey (MIM) also slipped below the asset’s $1 par­i­ty, drop­ping to a low of $0.914 per unit. By using the pro­to­col Abracadabra.money, users cre­ate MIM by adding col­lat­er­al and today, there’s 197,674,194 MIM in circulation.

MIM can also be lever­aged using var­i­ous blockchains such as Ethereum, Fan­tom or BSC. MIM was still trad­ing at $0.992 per Unit on Sat­ur­day despite its slide to $0.91. The fall below the $1 par­i­ty brought MIM a lot of atten­tion dur­ing the day, as the “MIM depeg” was a trend­ing sub­ject on social media. One Twit­ter account was active the day before. said that MIM was “about to depeg (yet again) with a 95.8% liq­uid­i­ty imbal­ance. There’s only $6m of liq­uid­i­ty left in the pool.”

Abracadabra dispels insolvency rumors and addresses the depegging incident

Fur­ther­more, Abra­cadabra pub­lished a blog post that address­es “a large num­ber of false Twit­ter threads.” Abra­cadabra said that the false infor­ma­tion “cre­at­ed extreme volatil­i­ty that has affect­ed the MIM peg and the MIM-3pool liq­uid­i­ty on Curve Finance.”

“One of the cen­tral pieces to the FUD revolves around Abracadabra’s trea­sury com­po­si­tion,” Abracadabra’s blog post notes. “Our oper­a­tional trea­sury, which does not include SPELL tokens, cur­rent­ly owns more than $13.2M in assets (at the time of writ­ing). Rough­ly half of the trea­sury is in MIM sta­ble­coin, and the oth­er half is in CRV tokens which are fun­da­men­tal assets for us to hold.” The decen­tral­ized finance (defi) project’s blog post adds:

The exact amount of the Treasury’s 6,619,923.5 MIM tokens and 10,380,153.06 CRC tokens are available.

Abracadabra’s blog post also asks peo­ple with out­stand­ing loans to repay the bal­ance while the peg is low in order to rebal­ance the MIM-3pool.

“As we write this post, the health of the Curve pool con­tin­ues to improve and we ful­ly expect the MIM peg to be restored short­ly. In addi­tion, we plan to share a more detailed set of dates around when and how repay­ment will occur,” Abracadabra’s blog post concludes.

USDD and MIM have been volatile, while the USDN sta­ble­coin neu­tri­no has dropped below $1 par­i­ty. At 6:05 pm (ET), it trad­ed for $1. How­ev­er, USDN fell to $0.931 ear­li­er in the day.

In this story, tags

$1 Par­i­ty. 1, Abracadabra.money. Altcoins.curve Pool. depeg. Mag­ic Inter­net Mon­ey. MIM. MIM. peg. neutrino.usd. Sta­ble­coin. Sta­ble­coins. Ter­rausd (UST), TRON, USDD. USDN. UST

How do you feel about Saturday’s sta­ble­coin mag­ic Inter­net mon­ey (MIM), depeg­ging? What do you think about Abracadabra’s blog post state­ment? Com­ment below and let us know how you feel about the subject. 

Jamie Redman 

Jamie Red­man, a Flori­da-based finan­cial jour­nal­ist and news lead at Bitcoin.com News is Jamie Red­man. Red­man is an active par­tic­i­pant in the cryp­tocur­ren­cy com­mu­ni­ty from 2011. Red­man is pas­sion­ate about Bit­coin and open-source codes. Red­man is a pro­lif­ic writer for Bitcoin.com News, with over 5,000 arti­cles on dis­rup­tive protocols.




Images Cred­itsShut­ter­stock. Pix­abay. Wiki Commons

Dis­claimerThis infor­ma­tion is pro­vid­ed for edu­ca­tion­al pur­pos­es only. This arti­cle is not intend­ed to be a solic­i­ta­tion or offer to sell or buy any prod­uct, ser­vice, or com­pa­ny. Bitcoin.com is not a provider of invest­ment, tax, legal or account­ing advice. The author and the com­pa­ny are not respon­si­ble for any loss or dam­age caused or alleged caused by the con­tent or use of any goods, ser­vices, or infor­ma­tion men­tioned in the article.



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