MIM algorithmic stablecoin loses $1 peg - Cryptopolitan

* Blockchain security firm Blockaid attributed the depeg primarily to thin liquidity rather than a protocol exploit. * The incident adds to a growing list of algorithmic stablecoin depegs, including USDe and USX, highlighting persistent liquidity risks in the sector. * Abracadabra is pushing a governance proposal to boost MIM liquidity through a new Curve gauge, but any benefits remain days away. **Abracadabra’s MIM stablecoin took a major reputation and valuation hit today June 12 as it fell as low as $0.87 across multiple chains. The dollar-pegged token’s slide adds to a growing list of algorithmic dollar tokens that have failed to hold their $1 target when liquidity dried up.** The depeg on Arbitrum was flagged by blockchain security firm Blockaid. MIM was reportedly trading between $0.91 and $0.92 on executable routes. [Blockaid](https://x.com/blockaid_/status/2065416598739972462) attributed the price drop to thin and imbalanced liquidity in Arbitrum pools. The pricing onchain is not looking good either, as MIM was changing hands at $0.871 to $0.874 across chains, which is an 11% slide in 24 hours. Ethena’s USDe, the third-largest stablecoin by market cap, [crashed to $0.65 on Binanc](https://www.cryptopolitan.com/ethenas-yield-stablecoin-loses-dollar-peg/)e in October 2025 after a market-wide selloff triggered mass liquidations. More than $19 billion in leveraged crypto positions were wiped out in under 24 hours during that event, according to Cryptopolitan’s reporting at the time.