#stablecoin depeg

[rwatimes]

Magic Internet Money Falls 50% Below Peg as Abracadabra Declares Emergency

➤ Abracadabra's MIM stablecoin has fallen significantly below its $1 peg, trading around $0.48. ➤ The protocol has declared emergency measures, including interest rate hikes and pausing incentives, to encourage debt repayment and reduce MIM supply. ➤ This depeg is a severe event for Abracadabra, which has faced similar crises before, impacting its governance token SPELL and overall Total Value Locked (TVL).

[rwatimes]

Abracadabra raises interest rates as MIM stablecoin depeg worsens

➤ Abracadabra.money's stablecoin MIM has depegged significantly, falling to $0.50, prompting the protocol to raise interest rates to encourage debt repayment and reduce MIM supply. ➤ The protocol has also suspended ecosystem growth incentives, redirecting all resources towards restoring the stablecoin's peg, a move that follows previous depegging incidents and smart contract exploits. ➤ The depeg poses contagion risks to DeFi liquidity pools and presents a complex situation for borrowers who can theoretically repay debts at a discount while facing increased interest costs.

[rwatimes]

Abracadabra Issues Emergency Measures as MIM Stablecoin Depeg Escalates

Abracadabra has moved to stabilize its dollar-pegged stablecoin Magic Internet Money (MIM) after the token fell more than 50% below its $1 peg. The DeFi protocol said it is rolling out emergency measures that increase borrowing costs across its lending system in order to encourag...

➤ Abracadabra is implementing emergency measures, including increased borrowing costs, to stabilize its MIM stablecoin after it depegged by over 50% from its $1 peg. ➤ The protocol's strategy relies on incentivizing debt repayment to reduce MIM's circulating supply, aiming to restore confidence and liquidity. ➤ The depeg highlights structural vulnerabilities in crypto-collateralized stablecoins, where thin liquidity can exacerbate price drops, especially during broader market downturns.

[ekremdum-blog]

A de-peg is a stablecoin's defining failure. Learn what causes pegs to break, how to spot a death spiral, and how to monitor and limit your exposure.

Stablecoin De-Pegging Risk: Why Pegs Break and How to Manage It

[rwatimes]

Depeg des stablecoins EURR et USDR de StablR - Que s'est-il passé ?

L’émetteur des stablecoins EURR et USDR, StablR, a été ciblé par une attaque ayant entraîné la création de plus de 10 millions d'unités.

➤ StablR's EURR and USDR stablecoins experienced a depeg after an exploit allowed for the unauthorized minting of over $10 million worth of tokens. ➤ The attack was attributed to a failure in key management and governance, rather than a smart contract bug, leading to significant losses and loss of peg. ➤ The incident highlights regulatory concerns in Europe and provides ammunition for the ECB's stance against stablecoins, while also raising questions about operational security in the crypto space.

[rwatimes]

BIS warns crypto exchanges acting as “shadow banks,” raising systemic risk concerns

BIS warns crypto exchanges are acting as shadow banks, raising systemic risk concerns. Stablecoin depeg by 2027 at 3% YES.

➤ The Bank for International Settlements (BIS) has warned that crypto exchanges are operating as 'shadow banks,' posing systemic risks due to a lack of regulatory oversight. ➤ Despite the BIS warning, Bitcoin's price remains largely unaffected, though traders are pricing in a 3% chance of a stablecoin depeg by 2027, indicating a cautious outlook on regulatory developments. ➤ The article highlights the potential for increased regulatory scrutiny and suggests monitoring responses from global regulators and central banks.