Abracadabra Finance had confirmed yesterday about a major security breach involving its gmCauldrons product which resulted in a loss of approximately $13 million (around 6,262 ETH). Despite the severity of the breach, the decentralized finance (DeFi) protocol responded swiftly by repurchasing 50% of the stolen funds, 6.5 million MIM, within 36 hours using its DOA Treasury assets.
The rest of the loss will be gradually absorbed in the coming months slowly and steadily. According to another post on social media platform X, MIM_Spell official page informed that the full repayment can be expected to be made by mid-2025.
Abracadabra’s quick and decision action indicates its commitment to protecting user funds and maintaining trust within its community which is most important at the moment. Moreover, on the bright side, no user collateral was compromised during the attack.
Abracadabra to Partner with Berachain, NibiruChain and PurrSwap
Even though there had been a breach yesterday, Abracadabra has remained steadfast in its operations. SPELL emissions on liquidity pools were not interrupted and the protocol is currently expanding its partnership with Berachain, NibiruChain and PurrSwap.
With these partnership with Berachain and launch of Berachain cauldrons, the users will be able to use LP tokens as collateral to mint MIM. This integration is said to be supported by AIP 55, includes SPELL emissions directed towards Proof-of Liquidity (POL) for the MIM-USDT0 pool and the deployment of Omnichain SPELL to enhance liquidity across chains.
Moreover, MIMswap is set to launch on Nibiru following AIP#62, providing a stable swap solution and fueling growth in the ecosystem. Abracadabra, as stated above, is also incubating Purrswap, the first Stableswap on HyperEVM, backed by MIMswap technology and deep integrations. All these innovations also place Abracadabra as a key innovator in DeFi space.
Protocol Standing Strong
The protocol’s treasury held approximately $19 million before the repayment effort, which just indicates how prepared the protocol is for such adversities. This incident follows previous exploits targeting GMX and MIM_Spell Contracts, which indicates the ongoing security challenges in the DeFi space. With the repayment action, remediation plans and new pathways for expansion, Abracadabra is set to rise stronger from these difficult times in the coming months.
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