Abracadabra ($SPELL)
HackedDeFi · $SPELL · born 2021 · ✝ 2025
The magic ran out for the MIM money market again.
Abracadabra is a lending protocol behind the MIM stablecoin and SPELL token that was exploited again in 2025, this time on Arbitrum. An attacker abused the protocol's cauldron lending logic to drain funds.
- Peak
- ~$13M stolen
- Cause
- Hacked
- Year of death
- 2025
☠️ Cause of death
A flaw in the protocol's lending logic let the attacker borrow or withdraw value beyond what their collateral allowed, draining the affected cauldrons.
📓 Lessons left behind
- —Repeat victims must rethink architecture, not just patch.
- —Stablecoin lending logic needs continuous re-auditing.
- —Add invariant checks that block under-collateralized exits.
🌱 The idea that survived
Continuous protocol auditing
Underscored that complex lending protocols need ongoing audits and invariant monitoring, not one-time reviews.
#defi#lending#stablecoin#logic-bug