Abracadabra’s stablecoin slid as low as $0.87 on June 12, with thin liquidity blamed for the move as a new Curve gauge proposal aims to bolster on-chain market depth.
MIM, Abracadabra’s dollar-pegged stablecoin, fell about 11% on June 12 and traded as low as $0.87 across multiple chains, extending an earlier depeg flagged on Arbitrum. Blockaid said executable trading paths on Arbitrum showed prices around $0.91-$0.92, while on-chain quotes across chains were weaker at roughly $0.871-$0.874; PeckShieldAlert also flagged the drop, with the token last quoted at $0.8776. Blockaid attributed the move to thin and imbalanced liquidity in Arbitrum pools, underscoring a recurring vulnerability for algorithmic stablecoins when secondary-market depth dries up. The selloff came a day after Abracadabra submitted a governance proposal to add a MIM-2Pool gauge on Curve Finance, a step that could make the pool eligible for CRV emissions if approved after a seven-day vote and potentially attract more liquidity providers.