MIM, the stablecoin issued by Abracadabra, has slid to about $0.50 — roughly half its dollar peg — after a slow-burn depeg that began near $0.82 in mid-June accelerated this week.

To defend it, Abracadabra hiked rates across every Cauldron to force MIM repayment and paused all incentives until the peg returns.

It's the latest stress test for a smaller DeFi stablecoin: with MIM near $0.50, the rate hikes and incentive pause are a bet that shrinking circulating supply can drag the token back toward $1.