Abracadabra Finance has announced that it has successfully repurchased 6.5 million MIM, which accounts for 50% of the total losses incurred during the recent $13 million exploit.
In a blog post released following the hack, the protocol confirmed that user funds remained safe from the attack and that efforts are underway to recover the stolen cryptocurrency by purchasing Magic Internet Money (MIM), the stablecoin pegged to the USD that supports the Abracadabra ecosystem.
The protocol has designated a portion of its treasury reserves to buy back MIM from the market in an effort to alleviate supply imbalances.
“Our DAO treasury, which currently holds around $19 million in assets, has already acquired 6.5 million MIM, effectively reclaiming 50% of the total loss. The remaining amount will be covered by our treasury in the upcoming months,” the Abracadabra team stated.
Additionally, the protocol intends to maintain the MIM peg, which remarkably remained stable throughout the turmoil, only slightly dipping below the $1.00 threshold. As of now, the Ethereum (ETH)-based stablecoin has decreased by 0.5%, trading at $0.9946 according to CoinGecko.
Abracadabra Finance’s Strategy Post-Hack
In the same blog post, the protocol laid out its strategy for the forthcoming months to recover from the hack. Alongside the treasury management and token recovery plans previously mentioned, it is also looking to expand into the Berachain (BERA) and Nibiru Chain ecosystems.
Furthermore, the AbracadabraDAO has announced plans to incubate a new decentralized exchange (DEX) project named Purrswap. This project will be launched on the HyperEVM chain with Abracadabra providing the necessary funding, resources, and expertise.
Regarding the pursuit of the stolen funds, Abracadabra reported that it’s working with Chainalysis to facilitate their recovery. Current blockchain investigations have indicated that the 6,000 ETH stash is being held in three distinct cryptocurrency addresses.
The protocol also expressed its willingness to engage in negotiations with the hacker with the hope of recovering its stolen assets.
Previously reported losses indicated that Abracadabra Finance was the victim of a malicious hack, resulting in an estimated $13 million in losses, primarily targeting its gmCauldron smart contracts and the integration between the decentralized exchange GMX and Abracadabra’s lending contracts.