April-hacked Beanstalk protocol and algorithmic stablecoin relaunches

Beanstalk, an algo stablecoin project that previously suffered a disastrous $77M governance attack, has officially relaunched its system.
Beanstalk, an algo stablecoin project that previously suffered a disastrous $77M governance attack, has officially relaunched its system.

Beanstalk Farms (BEAN), an Ethereum-based algorithmic stablecoin project that previously suffered a disastrous $77 million governance attack, has officially relaunched its system.

In a statement, Beanstalk said that the attack had made it stronger than before, most likely referring to the governance and security of the protocol. Notably, Beanstalk’s protocol and its governance were put on hold after the governance exploit and flash loan attack in April 2022, but they were restarted as of August 6 in an event known as the “Replant.”

Publius, the developer team behind the BEAN stablecoin and protocol, said it has now transferred protocol governance to a community-run multisig wallet until it implements a secure on-chain governance mechanism.

Beanstalk all set for a successful launch

The team also emphasized that new application building is already underway on the network, with the Root Protocol having announced a $9 million seed round on July 26 to create marketplaces for finance, commerce, and sports betting on Beanstalk. Additionally, the project claimed to have finished two protocol audits from “top not smart contract auditing firms” in Trail of Bits and Halborn.

The project needs to make significant progress before it can match its prior metrics that existed before the breach. The market valuation of Beanstalk’s algorithmic stablecoin BEAN reached a high of $100 million in mid-April, but as of this writing, it is just around $284K, and the asset is trading at a low of $0.0039; data from CoinGecko reveals.

When it comes to stablecoin, one cannot forget the TerraUSD (UST) disaster, which burnt a huge chunk of users’ money into ashes. Soon after, Tron founder Justin Sun, who is also bringing a stablecoin with a similar mechanism to that of UST, said that he had learned some major lessons from the depegging incident.

Nonetheless, Beanstalk has raised around $10 million from a funding round to restore the stolen funds and help users in trusting the project back.