Abracadabra

A new version of a DeFi lending platform is set to launch in two phases this year: - **Q2 2026**: Beta release - **Q3 2026**: Full deployment **Key Features:** - Borrowing up to **90% loan-to-value ratio** - Private spending debit cards for everyday transactions - Zero-knowledge privacy pool for enhanced anonymity - Web and mobile neo-banking interfaces The platform combines traditional banking convenience with privacy-preserving technology. Users can add collateral, borrow stablecoins, route funds through a ZK privacy layer, and manage everything through a single application. This update represents a shift toward making DeFi more accessible while maintaining user privacy through zero-knowledge proofs.

Abracadabra has introduced a proposal to gradually increase borrowing rates on V1 cauldrons over 30-60 days as part of its transition to V2. **Key objectives:** - Stabilize the MIM stablecoin peg - Consolidate liquidity before V2 launch - Encourage users to migrate from V1 to V2 - Optimize protocol reserves and revenue The RFC outlines the pace and structure of these rate increases, using higher borrowing costs as an economic incentive for migration. This approach aims to concentrate liquidity in preparation for the V2 deployment while maintaining protocol health during the transition period. [Read the full proposal](https://forum.abracadabra.money/t/rfc-1-gradual-interest-rate-increase-for-v1-cauldrons-during-v2-transition/12)

Abracadabra is launching V2, transforming its MIM stablecoin from a basic DeFi tool into a private banking platform. **Key Features:** - Borrow against yield-bearing collateral while maintaining upside exposure - Private spending capabilities - Designed for everyday use The platform aims to bridge DeFi lending with traditional banking convenience. Users can access the full announcement and join the beta waitlist at [abracadabra.money/v2-announcement](https://abracadabra.money/v2-announcement).

Revolut is rolling out its crypto-enabled banking card across 66 countries, implementing a careful market-by-market approach with compliance safeguards. **Key Features:** - Full bank account functionality, not limited to crypto off-ramping - Gradual deployment with regulatory compliance at each stage - Expansion beyond typical neobank offerings This measured rollout follows Revolut's 2024 entry into a mobilization stage for new banking operations with initial restrictions.

A major network upgrade has arrived on Ethereum, bringing V2 to the platform. **Key Updates:** - V2 is now live on Ethereum mainnet - The stablecoin model continues to support MIM (Magic Internet Money) exclusively - No additional stablecoin options have been introduced in this version This launch represents a significant milestone for the protocol, maintaining its focused approach to stablecoin integration while expanding its technical capabilities on Ethereum.

**Privacy-first by design** V2 introduces a fundamental shift: privacy is now the default setting, not an opt-in feature buried in advanced settings. **Key changes:** - Zero-knowledge technology runs automatically in the background - No complex toggles or technical knowledge required - Seamless experience across web and mobile platforms **Why it matters:** Most online systems default to exposure when privacy is optional. By making privacy mandatory at the infrastructure level, V2 ensures users are protected without having to think about it. The technical complexity of ZK rails remains hidden, delivering enterprise-grade privacy with consumer-grade simplicity.

Abracadabra Money has unveiled its V2 platform featuring a streamlined six-step process for privacy-focused DeFi borrowing: - **Add collateral** to secure your position - **Borrow MIM** (Magic Internet Money) stablecoin - **Route through ZK privacy pool** for enhanced transaction privacy - **Spend or repay** with flexible options - **Vault-backed receipts** for proof of holdings - **Full controls in one app** for simplified management The new version integrates zero-knowledge privacy technology directly into the borrowing workflow, allowing users to maintain confidentiality while accessing DeFi lending services. All operations are managed through a single unified interface.

Rehide has introduced a comprehensive vault system designed to enhance Web3 security and accessibility. **Key Features:** - **Encrypted ZK receipts** and privacy credentials for enhanced transaction privacy - **Multi-device synchronization** for seamless access across platforms - **Passkey support** for modern authentication - **Offline Recovery Kit** for backup security All keys remain end-to-end encrypted, maintaining zero-knowledge architecture. The system builds on Rehide's existing Web3 wallet integration, which already provides secure password storage and encrypted data sharing. Users maintain complete control over their data while benefiting from improved accessibility and recovery options.

Abracadabra Money is rolling out V2 with significant upgrades while maintaining its core MIM stablecoin system. **What's staying:** - MIM remains the primary stablecoin - Interest-bearing collateral borrowing - Overcollateralized positions **New V2 features:** - **Private spending by default** - transactions are now private - **Up to 90% loan-to-value ratio** - borrow more against your collateral - **Real banking UX** - improved user experience The protocol continues to allow users to borrow against their assets without selling them, maintaining the zero-interest model with no repayment deadlines.

A security vulnerability hit Abracadabra's deprecated V4 cauldrons on Ethereum, allowing an attacker to mint **1.79 million MIM tokens**. **Quick Response** - DAO Treasury immediately identified and mitigated the vulnerability - Bought back all affected MIM from the market - **No user funds were lost** during the incident **Current Status** - Attack effects have been **completely reversed** - Cauldron borrowing temporarily disabled for code review - All systems remain stable **Investigation Ongoing** - Bug bounty offered for information leading to hacker identification - Team reviewing codebase before future deployments - [Transaction details](https://etherscan.io/tx/0xbaede1ddbab71fb48d25139e720356d8c487d47ce4b94aaf683969dc1fb1c984) available on Etherscan This marks another security incident for the protocol, which faced similar exploits in early 2024 affecting V3 and V4 cauldrons.