September 26, 2022

The Beanstalk Farms team restarted the DeFi protocol four months after the hack

The Beanstalk Farms team restarted the DeFi protocol four months after the hack

The developers of Beanstalk Farms have restarted the Ethereum-based stablecoin protocol. They expect to return BEAN to capitalization of $100 million, achieved on the eve of the hack on April 17, 2022.

A successful hacker attack resulted in $181 million in project losses. The hackers received ~$76 million.

The Replant event was timed to coincide with the anniversary of the deployment of the code on the Ethereum network.

“The BEAN experiment is back in the wild.It's impossible to predict how this will work out, but Beanstalk Farms' belief in the possibility of an unlimited fiat stablecoin is unshakable. […] It is currently unclear whether a stablecoin is good enough to sustain itself forever. The model still has some shortcomings. However, it is able to sustain itself in the short term.", the team said in a statement.

Project management was transferred to the wallet frommulti-signatures of community members until "a secure alternative is implemented." Speaking to Cointelegraph, the Publius team behind Beanstalk noted that the move speaks to the protocol's credibility.

The code was audited by Trail of Bits and Halborn. New dapps are being developed based on the project.

Beanstalk is issuing the BEAN stablecoin on a leveraged basis. Investors buy the protocol's debt, which earns interest.

According to Coingecko, the BEAN exchange rate is $0.004. It lost its peg to the US dollar after the April 17 incident. The capitalization of the asset dropped to $288,232.

As of June 5, Beanstalk has only been able to raise $10 million in fundraising to recover stolen funds.

Recall that in July the marketplace project for financial markets, forecasting and trading Root Protocol based on Beanstalk raised $9 million.

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