Abracadabra Finance claims it has bought back 6.5 million MIM, equal to 50% of the total loss it suffered in the recent $13 million exploit.
In a blogpost published in the aftermath of the hack, the protocol confirmed that user funds were unaffected by the attack and that the team is working towards restoring the stolen crypto it had lost in the exploit by acquiring Magic Internet Money or MIM, the USD-pegged stablecoin that underpins the Abracadabra ecosystem.
According to the statement, the protocol has allocated a chunk of its treasury reserves to buy back MIM from circulation in hopes of reducing supply distortion.
“The DAO treasury, which currently holds around $19m in assets, already acquired 6.5m MIM and repaid 50% of the total loss, with the rest to be absorbed by our treasury in the next months,” wrote the Abracadabra team.
In addition, it plans to continue supporting its MIM peg, which managed to hold up throughout the crisis, only dipping slightly below the $1.00 mark. At press time, the Ethereum (ETH)-based stablecoin has gone down by 0.5%. MIM is currently trading hands at $0.9946 according to data from CoinGecko.
Abracadabra Finance’s post-hack plan
In the blog post, the protocol also unveiled its plans for the next few months in an effort to bounce back after the hack. Aside from the aforementioned treasury holding and token remediation plan, the protocol is also planning expansions into the Berachain (BERA) and Nibiru Chain ecosystems.
Moreover, the AbracadabraDAO revealed that it is also preparing to incubate a new DEX project called Purrswap. The project will be deployed on the HyperEVM chain and Abracadabra will provide funding, resources, and guidance for the project.
With regards to tracking down the stolen funds, Abracadabra stated that it is collaborating with Chainalysis to recover them. So far, on-chain investigations have revealed that the 6,000 ETH trove is currently stored in three different crypto addresses.
The protocol said it is also open to negotiating with the hacker to reach an agreement that would return its stolen funds.
As previously reported by crypto.news, Abracadabra Finance confirmed it suffered a malicious hack that led to approximately $13 million in losses. The exploit targeted its gmCauldron smart contracts, specifically the integration between decentralized exchange GMX and Abracadabra’s lending contracts.
