DeFi protocol Abracadabra Finance has reportedly suffered a major security attack. Security analysts estimate that more than $6.4 million appears to have been leaked through this protocol.
Security firms PecShield and BlockSec said the incident was a malicious attack.
Blocksec told The Block that initial analysis suggested an attack on the project's smart contracts, but further analysis is required. At the time of writing, the company estimates it has approximately $29 million in assets remaining in affected contracts. “Assets remain at risk and projects and users need to take immediate action,” Bloxek said.
Known for its DeFi lending and borrowing tools, Abracadabra Finance allows users to deposit various cryptocurrencies as collateral to borrow a stablecoin named Magic Internet Money (MIM).
According to The Block's price page, the MIM stablecoin temporarily fell to below $0.7 as a result of this incident, but has since recovered to $0.96.
Magic Internet Money (MIM) Price Chart | Source: The Block
The Abracadabra finance team released a statement. “We are aware of an exploit involving certain cauldrons on Ethereum. Our engineering team is prioritizing and investigating the situation.” Said. The project added that the DAO's treasury will “purchase MIMs from the market” and incinerate them as a step toward recovering from the incident and related MIM depegging.
Abracadabra Finance was co-founded by Daniele Sesta, known for his involvement in projects such as Wonderland Money and Popsicle Finance.
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