Beanstalk stablecoin protocol relaunches after a disastrous $77M hack that happened in April. On August 6, the Beanstalk stablecoin protocol was revived, with the developers attempting to recoup the $100 million market cap of its BEAN stablecoin before the April hack.
Beanstalk Farms, an Ethereum-based algorithmic stablecoin project that had a disastrous million governance attack, has officially rebooted its system.
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Following the governance exploit and flash loan attack in April, the protocol and its governance were put on hold until August 6, when they were reopened in an occasion known as the “Replant.”
Beanstalk claimed that the experience had made it stronger than before, most likely referring to the governance and security of the protocol.
“Beanstalk has come out on the other end of this ordeal stronger than ever. It is a testament to the creditworthiness of the protocol and its potential to help realize a permissionless future,” said Publius, the developer group behind the BEAN stablecoin and protocol.
In order to wait for “a safe on-chain governance mechanism to be established,” Publius said it had now relocated protocol governance to a community-run multi-sig wallet.
Additionally, the project claimed to have finished two protocol audits from “top tier smart contract auditing organizations” Trail of Bits and Halborn.
The spokesman also emphasized that new application development is already underway on the network, with the Root Protocol having announced a $9 million seed round on July 26 to create marketplaces for commerce, finance, and sports betting on Beanstalk.
Today, Beanstalk Farms is thrilled to announce that Beanstalk has been Unpaused on the one year anniversary of its initial deployment.https://t.co/HxZmwWksZe
— Beanstalk Farms (@BeanstalkFarms) August 6, 2022
The project needs to make significant progress before it can equal its prior metrics from before the breach. The market valuation of Beanstalk’s algo-stablecoin BEAN reached a high of $100 million in mid-April, but as of this writing it is just $284,426 and the asset is trading at a low of $0.0039, according to statistics from CoinGecko.
The project has also had only sporadic success recovering the funds that were improperly obtained in April. As of June 5, the project had amassed $10 million through fundraising to replace the funds that had been taken.
But since algorithmically backed stablecoins are also up for debate, it’s unclear how long-term BEAN will be viable. Even back in June, Publius emphasized such, as he noted:
“At present, it is unclear whether Beanstalk is good enough to sustain itself in perpetuity. There still remain some inefficiencies in the model. However, Beanstalk is likely good enough to continue to sustain itself in the short term.”
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