Abracadabra Finance Confirms a Major Security Breach Involving Its gmCauldrons Product

Abracadabra Finance had confirmed yesterday about a major security breach involving its gmCauldrons product which resulted in a loss of approximately $13 million

Abracadabra Finance has confirmed a major security breach involving its gmCauldrons product, resulting in a loss of approximately $13 million (around 6,262 ETH).

Despite the severity of the breach, the decentralized finance (DeFi) protocol responded swiftly by repurchasing 50% of the stolen funds, 6.5 million MIM, within 36 hours using its DOA Treasury assets. The remaining loss will be gradually absorbed in the coming months.

According to another post on X, MIM_Spell official page informed that the full repayment can be expected to be made by mid-2025.

“We will be slowly and steadily absorbing the rest of the loss over the coming months. The full repayment is expected to be made by mid-2025,” said MIM_Spell in a post.

Moreover, on the bright side, no user collateral was compromised during the attack.

“[The] protocol is in excellent health with all systems operational and SPELL emissions on liquidity pools continuing as planned. We are also expanding with new partnerships with Berachain, and integrating PurrSwap.”

The integration with Berachain will enable users to use LP tokens as collateral to mint MIM, while the partnership with PurrSwap, the first Stableswap on HyperEVM, is being incubated by Abracadabra.

These innovations are backed by MIMswap technology and deep integrations, aiming to place Abracadabra as a key innovator in the DeFi space.

Protocol’s treasury held approximately $19 million before the repayment effort, which just indicates how prepared the protocol is for such adversities.

This incident follows previous exploits targeting GMX and MIM_Spell Contracts, highlighting the ongoing security challenges in the DeFi space.

With the repayment action, remediation plans and new pathways for expansion, Abracadabra is set to rise stronger from these difficult times in the coming months.