Key facts MIM, the crypto-collateralised stablecoin issued by Abracadabra.money, depegged for the second time in seven days on 12 June 2026. The token dropped below $0.88 during the second event. The first depeg occurred on 8 June 2026, when MIM slipped to approximately $0.9861. According to CryptoTimes, on-chain and decentralised finance monitoring platforms attributed both depegs to thin exit liquidity and imbalanced decentralised exchange (DEX) pool compositions rather than a new exploit or protocol vulnerability. As of publication, no official statement had been issued by the Abracadabra team explaining the precise triggers or any planned response.
MIM price fell to $0.8928 as pool balance health reached 12%MIM traded at $0.8928 at 16:18 UTC on 12 June 2026, down 8.71% over the prior 24 hours (CoinPaprika, 12 June 2026). According to PharosWatch, a DeFi monitoring platform operating a Depeg Early Warning Signal system, MIM held approximately $35 million in DEX liquidity spread across 47 pools on five chains. Despite that aggregate figure, PharosWatch reported the pool balance health metric at 12%. The metric measures how much of the available liquidity can be used for large exits without causing significant price impact. PharosWatch had flagged deteriorating liquidity conditions in the days before both depegs, identifying thin exit liquidity as the primary structural concern.
Thin exit liquidity drove both events, not a smart contract exploitMultiple on-chain monitoring platforms, including Blockaid and PharosWatch, confirmed that neither depeg stemmed from a new exploit or smart contract vulnerability. MIM is minted against interest-bearing collateral deposited in Abracadabra's lending cauldrons. The peg depends on arbitrage incentives and collateral redemptions rather than fiat reserves or algorithmic rebasing. Moderate selling pressure — from position unwinds or broader DeFi deleveraging — hit shallow order books, amplifying downward moves. According to CryptoTimes, cross-chain price discrepancies were most pronounced on Arbitrum, complicating arbitrage efforts and slowing peg restoration during both events.
Liquidity providers and borrowers faced slippage and liquidation riskLiquidity providers in MIM pools faced slippage and losses during both depeg events, according to CryptoTimes. Borrowers using MIM as a debt token in Abracadabra cauldrons faced liquidation risk as the stablecoin's value diverged from its $1 peg. The $35 million in aggregate DEX liquidity spread across 47 pools on five chains left insufficient exit capacity when selling pressure intensified. A pool balance health reading of 12% confirmed the structural gap. PharosWatch's early warning signal had identified the liquidity condition before both depegs, flagging a fragility that predated the June price dislocations. MIM traded at $0.8928 at 16:18 UTC on 12 June 2026, down 8.71% over the prior 24 hours (CoinPaprika, 12 June 2026). According to PharosWatch, a DeFi monitoring platform operating a Depeg Early Warning Signal system, MIM held approximately $35 million in DEX liquidity spread across 47 pools on five chains. Despite that aggregate figure, PharosWatch reported the pool balance health metric at 12%. The metric measures how much of the available liquidity can be used for large exits without causing significant price impact. PharosWatch had flagged deteriorating liquidity conditions in the days before both depegs, identifying thin exit liquidity as the primary structural concern.
Thin exit liquidity drove both events, not a smart contract exploitMultiple on-chain monitoring platforms, including Blockaid and PharosWatch, confirmed that neither depeg stemmed from a new exploit or smart contract vulnerability. MIM is minted against interest-bearing collateral deposited in Abracadabra's lending cauldrons. The peg depends on arbitrage incentives and collateral redemptions rather than fiat reserves or algorithmic rebasing. Moderate selling pressure — from position unwinds or broader DeFi deleveraging — hit shallow order books, amplifying downward moves. According to CryptoTimes, cross-chain price discrepancies were most pronounced on Arbitrum, complicating arbitrage efforts and slowing peg restoration during both events.
Liquidity providers and borrowers faced slippage and liquidation riskLiquidity providers in MIM pools faced slippage and losses during both depeg events, according to CryptoTimes. Borrowers using MIM as a debt token in Abracadabra cauldrons faced liquidation risk as the stablecoin's value diverged from its $1 peg. The $35 million in aggregate DEX liquidity spread across 47 pools on five chains left insufficient exit capacity when selling pressure intensified. A pool balance health reading of 12% confirmed the structural gap. PharosWatch's early warning signal had identified the liquidity condition before both depegs, flagging a fragility that predated the June price dislocations. Multiple on-chain monitoring platforms, including Blockaid and PharosWatch, confirmed that neither depeg stemmed from a new exploit or smart contract vulnerability. MIM is minted against interest-bearing collateral deposited in Abracadabra's lending cauldrons. The peg depends on arbitrage incentives and collateral redemptions rather than fiat reserves or algorithmic rebasing. Moderate selling pressure — from position unwinds or broader DeFi deleveraging — hit shallow order books, amplifying downward moves. According to CryptoTimes, cross-chain price discrepancies were most pronounced on Arbitrum, complicating arbitrage efforts and slowing peg restoration during both events.
Liquidity providers and borrowers faced slippage and liquidation riskLiquidity providers in MIM pools faced slippage and losses during both depeg events, according to CryptoTimes. Borrowers using MIM as a debt token in Abracadabra cauldrons faced liquidation risk as the stablecoin's value diverged from its $1 peg. The $35 million in aggregate DEX liquidity spread across 47 pools on five chains left insufficient exit capacity when selling pressure intensified. A pool balance health reading of 12% confirmed the structural gap. PharosWatch's early warning signal had identified the liquidity condition before both depegs, flagging a fragility that predated the June price dislocations. Liquidity providers in MIM pools faced slippage and losses during both depeg events, according to CryptoTimes. Borrowers using MIM as a debt token in Abracadabra cauldrons faced liquidation risk as the stablecoin's value diverged from its $1 peg. The $35 million in aggregate DEX liquidity spread across 47 pools on five chains left insufficient exit capacity when selling pressure intensified. A pool balance health reading of 12% confirmed the structural gap. PharosWatch's early warning signal had identified the liquidity condition before both depegs, flagging a fragility that predated the June price dislocations. Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment. All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Coinpaprika is not liable for any losses resulting from the use of this information.