The DeFi protocol behind stablecoin MIM, Abracabadra is hiking the interest rate on CRV-baked borrowings following the Curve exploit last Sunday.
A latest proposal is introduced in Abracadabra governance regarding its CRV holding which ultimately aims to reduce protocol’s total CRV exposure.
The proposal will apply collateral-based interest to two of CRV cauldrons with combined TVL of over $27 million. These cauldrones allow users to borrow stablecoin MIM using CRV as collateral. The current interest rate is 18% on CRV’s both claudrons.
The Curve founder Michael Egorov has 47.9M CRV as collateral on Abracadabra with 12.5M borrowed MIM against it, according to data form DeBank.
Also Read: Justin Sun and DCF God Acquires Curve Founder’s CRV Tokens
Earlier, Abracadabra did the similar with WBTC and WETH earlier in order to mitigate the risk associated with protocol’s liquidity and sustainability.
The proposal has received mixed reactions from the crypto community as several users are debating changes in fundamental terms and spiking rate with a whopping 200%, which is unethical.
