[Serenity Premium] MIM Collateralisation Status Post-Hack [Initial Review Feb 2024]

Abracadabra.Money, the issuer of veteran stablecoin MIM (Magic Internet Money), was hacked on 30 Jan 2024 for $6.5m. Post-hack, MIM is marginally undercollateralised, taking into all factors such as treasury backing and Arbitrum STIP impact.

The Hack

On 30 Jan 2024, Abracadabra's two V4 cauldrons, yv-3crypto and MagicAPE, were hacked and huge amounts of un-collateralised MIM were minted out of these two cauldrons. Hacker subsequently dumped MIM for ETH, causing MIM to depeg sharply, but soon recovered substantially.

A more technical analysis of the hack is presented by @kankodu in this thread. And we also wait for the official post-mortem.

Soon after the hack, the team market bought back some MIM with USDT from Abracadabra Treasury. The total amount is about $0.9m and the first transaction is here. Further, the team announced today that the hacked amount will be fully collateralized by the Treasury. As of now, MIM is trading between 98 and 99 cents.

The Collateralisation Status

We have gathered data from the official UI for all the MIM active and non-active debts. Approximately 48.8m MIM has been borrowed, excluding the recent hacked amount of 6.5m.

And from Etherscan and other EVM explorers, we sum up the MIM circulation status. Here is the simple summary: