Abracadabra Statement over the recent Wonderland Developments
It has been a long and hard 72 hours for our protocol and the Frog Nation as a whole.
We, as the Abracadabra team, feel it is important to clarify some misconceptions regarding our current situation.
Firstly, 0xSifu was never, at any time, directly or indirectly managing the Abracadabra Treasury. The SPELL treasury, which consists of all the unminted SPELL tokens have never been used to send funds to sifu.eth, and all of the transactions have been created and executed by our co-founders, Danielesesta and 0xMerlin as a part of a 2/2 multisign. Transactions related to the Abracadabra treasury revolve mostly around refilling farms or topping up incentivisation mechanisms, such as the Curve bribes system.
The MIM multisign, on the other hand, is a 6/10 multi-sign wallet, which mints MIM tokens to top up the cauldrons. No transaction can be executed without at least 6 signatures. Despite not having control over the Abracadabra treasury, 0xSifu was one of the 10 possible signers of Abracadabra’s MIM multi-sign. This meant that he was able to help sign-off on transactions that 0xMerlin was seeking to execute.
During his time as an Abracadabra Multisigner, 0xSifu has never proposed improper actions, and has performed his multisigner duty professionally and swiftly, ensuring the correct unfolding of Abracadabra Operations.
You can view the remaining multi-signers on our documentation page.
0xSifu also purchased OTC 250M SPELL tokens coming from the Team Allocation of a team member that was bought out. These tokens are being streamed towards his address using Sablier Finance. This is not a team allocation.
In light of the most recent developments, 0xSifu has been removed as a signer from the multi-sign. This transaction can be viewed on-chain.
Abracadabra and the Frog Nation
Secondly, it is important to clarify that while Abracadabra is a part of the Frog Nation and while some of the Abracdabra team work on Popsicle Finance and Wonderland, Abracadabra is an independent protocol whose fate is decided solely by sSPELL holders.
Because of this, the team feels that “AIP #6 — Abra Team Proposal: Abracadabra + Wonderland Merge” should be put on hold, while we wait to see what the future holds for Wonderland DAO. Especially relevant is the current ongoing vote on the potential dissolution.
Thirdly, we would also like to address the recent market actions that have impacted our TVL and call out an arbitrage opportunity in the MIM-3Pool on Curve finance.
During the past week, the Abracadabra contracts have been pressure tested and the system that we have put in place has proven to be extremely resilient. Large amounts of liquidity were pulled by large players, and many large Abracadabra positions were unwound. Despite all of this, the MIM peg has consistently and quickly rebounded to levels where trading has been sustainable. This resiliency is largely due to the fact that the MIM stablecoin is, and continues to be, over collateralized at all times.
The MIM peg continues to hold up because there are large opportunities. For example as the peg is below $1 anybody that has leveraged positions open, pays them back cheaper than when they opened them (if they opened them above the current MIM price).
The other big opportunity right now is that by depositing into the MIM + 3CRV pool right now with DAI,USDC,USDT an instant profit exists as Curve rewards users who balance out pools. Furthermore from the Convex rewards you are receiving a return of 50% as CRV and CVX rewards.