Decentralized lending protocol Abracadabra has opened a vote on Snapshot proposing a full liquidation of the protocol. Under the proposal, the remaining collateral would be converted into ETH and distributed proportionally to holders of the MIM stablecoin. The team estimates that recoverable assets amount to roughly $900,000, while bad debt tied to the protocol stands at as much as $21 million. Based on those figures, MIM holders are expected to recover only about $0.04 for every $1 of face value. If the vote passes, Abracadabra would move into a formal liquidation process, and the remaining collateral would be swapped into ETH for repayment. The proposal outlines a wind-down plan centered on distributing what is left of the protocol’s assets rather than continuing operations.
According to ChainCatcher, decentralized lending protocol Abracadabra has launched a vote on Snapshot proposing to liquidate the entire protocol and convert its remaining collateral into ETH for proportional repayment to holders of the MIM stablecoin.
The team estimates that recoverable assets are worth about $900,000, while the protocol is carrying bad debt of as much as $21 million. Under the proposal, MIM holders are expected to recover only around $0.04 for every $1 of face value.
If the vote is approved, Abracadabra will formally enter liquidation, and the remaining collateral will be exchanged into ETH for distribution.
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