Abracadabra

Abracadabra receives a D+ risk grade (62/100) from Hindenrank, where lower scores indicate lower risk. High risk — three exploits in two years and a stablecoin that repeatedly breaks its peg demonstrate systemic smart contract quality issues A lending platform where users deposit crypto to borrow the MIM stablecoin. It holds $11M in deposits, down significantly from peak levels after three separate hacks since January 2024 totaling over $21M in losses. Its D+ grade reflects the pattern of recurring smart contract vulnerabilities and a stablecoin that dropped to $0.76 during one incident.

The key risks identified for Abracadabra are: (1) Three separate hacks since January 2024 stole a combined $21M+ from the protocol. The same type of vulnerability in the batch transaction system (cook() function) was exploited twice. (2) The MIM stablecoin crashed to $0.76 during the January 2024 exploit. If another hack occurs, MIM holders could lose 20% or more overnight. (3) Collateral depends on external protocols like GMX and Yearn. If those protocols are exploited, Abracadabra's Cauldrons inherit the losses as bad debt.

Abracadabra scores 62/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 20/20, Oracle Surface: 5/10, Documentation Gaps: 5/10, Track Record: 15/15, Scale Exposure: 3/10, Regulatory Risk: 2/10, Vitality Risk: 9/10. The highest risk area is Interaction Severity at 20/20.

Among 90 rated Lending protocols on Hindenrank, Abracadabra ranks #89 by safety (lowest risk score = safest). Its 62/100 risk score and D+ grade place it among the riskier Lending protocols.

Abracadabra scores 15/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.