- Beanstalk stablecoin is relaunching after being offline for four months.
- The stablecoin was previously the victim of a flash loan attack that caused the company to lose nearly $182 million in cash.
Credit-based stablecoin Beanstalk has relaunched its protocol after four months. The stablecoin had previously undergone a massive flash loan attack that took the protocol offline for a while.
Beanstalk Stablecoin Relaunches On Its First Anniversary
Ethereum-based stablecoin Beanstalk is finally making a comeback. In an official blog post published by the company, Beanstalk confirmed its official “Unpause” and added that it is set to relaunch on its first anniversary.
“Today, Beanstalk Farms is pleased to announce that Beanstalk is Unpaused on the first anniversary of its first deployment.”
Beanstalk stablecoin, which was initially deployed on August 6, 2021 on the Ethereum mainnet, is an algorithmic stablecoin that suffered a massive flash loan attack in April 2022. The hack resulted in the taking of $182 million in money from Beanstalk, eventually causing the company to “quit and go offline for a while.”
“Beanstalk was initially deployed on the Ethereum mainnet on August 6, 2021. Over the ~8 months that followed, Beanstalk grew organically to $100 million in market cap and attracted $144 million in incentivized long-term liquidity to the governance exploit. April 17, 2022 Since then, Beanstalk Farms and Bean Sprout have worked with the Beanstalk community to prepare protocol for safe replanting and hiatus,” added the later.
However, the stablecoin has made a strong comeback. According to the statement from Beanstalk’s maker company Publius:
“Beanstalk has emerged stronger than ever on the other side of this ordeal. It is a testament to the protocol’s creditworthiness and its potential to help realize an unauthorized future.”
In addition, the company highlighted how it has completed two financial audits of “top class smart contracting audit firms” Trail of bits and Halborn.
The organization further noted that it believes the protocol will effortlessly solve existing stablecoin problems and allow blockchain-based companies to compete with non-blockchain-based companies by creating a low-volatility native asset.
“…the protocol solves existing problems related to stablecoins and allows blockchain-based firms to finally compete with non-blockchain-based firms by creating a low-volatility blockchain proprietary asset with competitive carrying costs (Bean). “
In addition, the company also announced how the protocol has shifted to a community-managed multi-sig wallet until it can secure an on-chain governance mechanism.
The blog further added what it is like in the wild for the users to explore and experiment.
“Now the Beanstalk experiment is back in the wild. It’s impossible to predict how it will perform, but Beanstalk Farms’ belief in the possibilities for an unauthorized fiat stablecoin is unwavering.”