Crypto hocus-pocus sees $6.5 million go ‘poof’ from Abracadabra thanks to a Cauldron problem that let a user exploit Magic Internet Money (I swear)

Get the popcorn in, because I swear it’s true. A cross-chain lending platform called Abracadabra Money has confirmed that an exploit allowed one user to drain at least $6.49 million in Ethereum-based stablecoins from its protocol (first spotted by Web3isgoinggreat). Fair warning that this story involves a bunch of crypto jargon which I’ll try to explain as we go along, but always remember: these words are meant to obfuscate, confuse, and give the veneer of reality to the mathematically abstract.

Let’s start with the Ethereum Cauldrons. These allow users to borrow the Magic Internet Money (MIM) stablecoin, yes really, a stablecoin being a crypto-token that is in theory pegged to the value of (and backed by) a recognised currency: in this case the US dollar. Users can borrow MIM this way by offering various other assets as collateral. What could go wrong?

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By asm3a