May 30, 2023

  • Beanstalk stablecoin is relaunching after four months offline.
  • The stablecoin earlier fell victim to a loan flash attack that resulted in the company losing nearly $182 million worth of funds.

Credit-based stablecoin Beanstalk has relaunched its protocol after four months. The stablecoin had earlier suffered a massive flash loan attack that took the protocol offline for a while.

Beanstalk Stablecoin is relaunching on its first anniversary

Ethereum-based stablecoin Beanstalk is finally back. In an official blog post published by the company, Beanstalk confirmed the official ‘Unpause’ adding that it is ready to re-release on its first anniversary.

“Today, Beanstalk Farms is excited to announce that Beanstalk has been canceled on the first anniversary of its original development.”

Originally developed on August 6, 2021, on the Ethereum mainnet, the Beanstalk stablecoin is an algorithmic stablecoin that suffered a massive loan attack in April 2022. The hack resulted in $182 million worth of funds being drained from Beanstalk, ultimately resulting in the company stop and go offline for a while. “

“Beanstalk was initially deployed on the Ethereum mainnet on August 6th, 2021. In the ~8 months that followed, Beanstalk grew organically to $100 million in market capitalization and raised $144 million in long-term incentivized liquidity until its governance exploit on April 17, 2022 From then, Beanstalk Farms and Bean Sprout worked with the Beanstalk community to prepare the protocol for a safe Replant and Unpause,” adds the latter.

However, the stablecoin has made a strong comeback. According to the statement shared by the company behind Beanstalk, Publius:

“Beanstalk has come out the other end of this ordeal stronger than ever. It’s a testament to the protocol’s creditworthiness and its potential to help realize a permissionless future.”

In addition, the company highlighted how it completed two financial audits by “leading smart contract audit firms” Trail of bits and Halborn.

The organization further noted how it believes the protocol effortlessly solves existing stablecoin problems and will allow blockchain-based businesses to compete with non-blockchain-based businesses through the creation of a native low-volatility blockchain business component.

“…the protocol solves the existing problems with stablecoins and will allow blockchain-based businesses to finally be able to compete with non-blockchain-based ones through the creation of a native low-volatility blockchain asset with competitive transfer costs ( Bean).’

In addition, the company also announced how the protocol has been moved to a community-operated multi-signal wallet until it can secure an on-chain governance mechanism.

The blog also added what it’s like in nature for users to explore and experiment.

“Now, the Beanstalk experiment is once again in the wild. It’s impossible to predict how it will perform, but Beanstalk Farms’ belief in the potential of a stable, permissionless fiat currency is unwavering.”

Image: Beanstalk/Twitter

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