Why did Magic Internet Money (CRYPTO) lose its US$1 peg?

Magic Internet Money (CRYPTO) lost its US$1 peg amid liquidity pressures and market weakness that reduced support for the stablecoin. The token fell from US$0.89 to about US$0.49 after previously dropping to US$0.74 in mid-June.

What are Abracadabra's emergency measures for Magic Internet Money (CRYPTO)?

Abracadabra is increasing interest rates across all Cauldron lending markets that support Magic Internet Money (CRYPTO). The protocol said the higher rates are intended to encourage debt repayment and reduce the stablecoin's circulating supply.

How is raising interest rates expected to help Magic Internet Money (CRYPTO)?

Abracadabra said higher borrowing costs should encourage users to repay loans denominated in Magic Internet Money (CRYPTO). Repaying debt removes MIM from circulation, which the protocol said could help support a return toward the US$1 peg.

What does the US$100,000 liquidity injection mean for Magic Internet Money (CRYPTO)?

Abracadabra added US$100,000 to a Curve Finance liquidity pool supporting Magic Internet Money (CRYPTO) on June 15. The protocol said the funds were intended to improve liquidity after withdrawals linked to changes in DeFi incentive strategies.

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Abracadabra raises rates as MIM falls 50%

Q: How large is the Magic Internet Money (CRYPTO) ecosystem today?

Magic Internet Money (CRYPTO) has an estimated circulating supply of about US$104 million. The overcollateralised stablecoin launched in May 2021 and is minted against yield-bearing crypto assets deposited into Abracadabra's lending markets.

Written by Brie CarterPublished Jun 25, 2026, 5:05 AM

Abracadabra introduced emergency measures after Magic Internet Money fell to about US$0.49, roughly 50% below its US$1 peg.
The protocol is increasing interest rates across all Cauldrons to encourage debt repayment and reduce MIM supply.
The move follows earlier liquidity support efforts as the stablecoin faces pressure from weak market conditions and thin liquidity.

Abracadabra's Magic Internet Money (CRYPTO:MIM) fell to approximately US$0.49 on Wednesday, prompting the decentralised finance protocol to implement emergency measures aimed at restoring the stablecoin's US$1 peg.

The depeg follows weeks of pressure on Magic Internet Money, which dropped to US$0.74 in mid-June, briefly recovered to US$0.89 and then declined further despite liquidity support measures introduced earlier this month.

“We’re acutely aware of the MIM depeg and are taking emergency actions to remedy the situation,” said the Abracadabra team.

Abracadabra said it will gradually increase interest rates across all Cauldrons, including deprecated markets, to encourage borrowers to repay debt, reduce the outstanding supply of Magic Internet Money and support a return to the peg.

The protocol said discounted debt repayments created by the depeg could accelerate supply contraction and help restore market confidence, and following the announcement the Magic Internet Money price was down at approximately US$0.49.

Abracadabra injected US$100,000 into its primary Curve Finance liquidity pool on June 15 after the stablecoin first moved away from its peg, stating that the capital would help restore balance following liquidity withdrawals linked to changing DeFi incentive strategies.

Magic Internet Money is an overcollateralised stablecoin launched in May 2021 that is minted against yield-bearing crypto assets within Abracadabra's lending markets, and its current circulating supply is approximately US$104 million.