Abracadabra Finance Recovery Efforts

Abracadabra Finance claims to have bought back 6.5 million MIM, which is 50% of the total loss from the recent $13 million exploit.

In a blog post released after the hack, the protocol assured that user funds remained unaffected and that efforts are underway to restore the stolen crypto by acquiring Magic Internet Money (MIM), the USD-pegged stablecoin vital to the Abracadabra ecosystem.

The statement indicated that the protocol is utilizing a portion of its treasury reserves to buy back MIM from circulation to alleviate supply distortion.

> “The DAO treasury, which currently holds around $19m in assets, has already acquired 6.5m MIM, satisfying 50% of the total loss, with the remaining amount to be absorbed by our treasury in the upcoming months,” the Abracadabra team noted.

The team also plans to support the MIM peg, which remained relatively stable, only dipping slightly below the $1.00 mark. At the time of writing, MIM was trading at $0.9946, having dropped 0.5%, according to CoinGecko data.


Abracadabra Finance’s Post-Hack Plan

In the blog post, the protocol detailed plans for the coming months to recover from the hack. Besides the treasury strategy and token buyback, Abracadabra aims to expand into the Berachain (BERA) and Nibiru Chain ecosystems.

Furthermore, the AbracadabraDAO revealed its intention to incubate a new DEX project called Purrswap, which will be launched on the HyperEVM chain with funding, resources, and guidance provided by Abracadabra.

Regarding the search for the stolen funds, Abracadabra is collaborating with Chainalysis. Current on-chain investigations indicate that the 6,000 ETH stolen is being held in three separate crypto addresses.

The protocol remains open to negotiations with the hacker to reach an agreement for the return of the stolen funds.

As previously reported by Crypto News, Abracadabra Finance experienced a malicious hack resulting in approximately $13 million in losses, targeting its gmCauldron smart contracts and the integration of the decentralized exchange GMX with its lending contracts.

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