Beanstalk Farms team restarts DeFi protocol four months after the hack

Beanstalk Farms developers have relaunched the Ethereum-based stablecoin protocol. They aim to return BEAN to a market capitalization of $100 million, reached on the eve of the April 17, 2022 hack.

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

A successful attack by attackers led to losses of $181 million for the project. The hackers took about $76 million.

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

“The BEAN experiment is back in the light. It is impossible to predict how this will work, but Beanstalk Farms’ belief in the possibility of an unlimited fiat-backed stablecoin is unwavering. […] It is not yet clear whether the stablecoin is good enough to sustain itself forever. The model still retains some flaws. Nevertheless, it is capable of sustaining itself in the short term”, the statement said in the team’s statement.

The project’s governance was moved to a wallet with multisignatures of community members until they “implement a safe alternative.” In an interview with Cointelegraph, the Beanstalk team Publius noted that this step signals a vote of confidence in the protocol.

Code audits were conducted by Trail of Bits and Halborn. Development of new dapps built on the project is underway.

Beanstalk issues the BEAN stablecoin backed by collateral. Investors purchase the protocol’s debt instruments, on which interest accrues.

According to Coingecko, BEAN trades at $0.004. It has lost its peg to the US dollar since the April 17 incident. The asset’s market capitalization has fallen to $288,232.

As of June 5, Beanstalk, during the fundraising, managed to raise only $10 million to recover the stolen funds.

In July, Root Protocol, a marketplace for financial markets, forecasting and trading built on Beanstalk, attracted $9 million.

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