How to Mitigate CRV Risk? Abracadabra Proposes 200% Interest Rate Hike
Abracadabra’s ongoing attempts to mitigate the risks to its of CRV cauldrons, increasing interest rates to reduce the total exposure to around $5 million in borrowed MIM.
In a move to manage its exposure to risks associated with Curve DAO (CRV), Abracadabra Money, a cross-chain lending platform, has proposed hiking the interest rate on its outstanding loans by 200%.
I'm sorry but jacking interest rates to 200% via governance is a rug. Changing the fundamental terms of a loan (10x interest rate) in a single transaction is very bad and we should call it out.
Very sympathetic to protecting protocol integrity but rugging is not the way https://t.co/sqWy7R0YPq
— Drake Evans (version 3) (@DrakeEvansV1) August 2, 2023
Other critics stated that “there’s a good chance $MIM loses all $CRV gauges fairly quickly,” meaning this Spell proposal could actually turn around Abracadabra’s risk exposure to CRV.
Voting for the proposal began on August 1 and will continue until August 3. As of the time of publication, 99% of the votes cast were in favor of the proposal.