The DeFi protocol Abracadabra has proposed winding down its stablecoin, Magic Internet Money (MIM), following a significant loss of its peg. As of mid-September 2026, the token is trading at approximately $0.0446, marking a decline of over 95% from its intended $1 value.
The proposal suggests settling outstanding debts at the current market price of roughly four cents per token. This move would result in a loss of approximately 96 cents on the dollar for holders. The protocol's self-reported market capitalization is currently around $4.63 million.
MIM's decline accelerated in June 2026, when the price dropped from $0.74 to a range of $0.49–0.50. Abracadabra attempted to stabilize the token by raising interest rates in its Cauldron lending markets, cutting liquidity incentives, and injecting $100 000 into a Curve pool.
Launched in 2021, the protocol previously faced a depegging incident in January 2024 due to an exploit. The circulating supply of MIM is currently estimated to be between 55 million and 104 million tokens. The future of the governance token SPELL remains uncertain following the proposed shutdown.
