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Tuesday, September 12, 2023

Beanstalk Relaunches Algo Crypto Coin After $77M Hack

Beanstalk, an algorithmic stablecoin system, said on Friday that it has resumed operations over four months after it was compromised, costing $180 million in cryptocurrency.

On August 6, the self-described “decentralized credit-based stablecoin protocol,” Beanstalk Farms, announced that it has “unpaused” its services in conjunction with the anniversary of its launch on the Ethereum mainnet.

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Following a significant attack on April 17, the protocol’s creators are hopeful that its redesigned debut will help ease concerns about its security and trust.

Beanstalk Was Hacked Early This Year

The organization stated in a blog post that it is “difficult to forecast how it will succeed, but Beanstalk Farms’ trust in the prospects for a permissionless fiat stablecoin is steadfast. A significant hack using governance flash loan exploits resulted in the theft of 24,830 ether and 36 million BEAN tokens, which at the time were valued roughly $180 million. According to the industry tracking website Rekt Leaderboard, the theft of the unaudited protocol is presently the sixth-largest attack in the sector.

The methodology for a secure replant and unpause has since been prepared by Beanstalk Farms and Bean Sprout in collaboration with the community, according to the article.

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A Beanstalk Farms representative has not yet responded to Blockworks’ request for comment. According to its website, it is a permissionless fiat stablecoin system created to use credit rather than collateral to produce its native stablecoin (BEAN).

According to the protocol, its main goal is to “encourage independent market players” to raise the price of one bean over its dollar peg in a “sustainable way.” After the collapse of Terra’s ecosystem in May, algorithmic stablecoins have come under scrutiny.

The team just revealed a $9 million fundraising effort for the Root protocol.

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