- Beanstalk stablecoin relaunched after going offline for four months.
- The stablecoin was earlier the victim of a flash loan attack that cost the company nearly $182 million in funds.
Credit-based stablecoin Beanstalk relaunched its protocol after four months. Stablecoins suffered a massive flash loan attack earlier that took the protocol offline for a while.
Beanstalk stablecoin relaunches on 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’s ready for a reboot on its one-year anniversary.
“Today, Beanstalk Farms is pleased to announce that Beanstalk has been unsuspended on the first anniversary of its first deployment.”
Originally deployed on the Ethereum mainnet on August 6, 2021, the Beanstalk stablecoin is an algorithmic stablecoin that suffered a massive flash loan attack as early as April 2022. The hack cost Beanstalk $182 million worth of funds, ultimately taking the company “stopped and offline for a while.”
“Beanstalk was initially deployed to the Ethereum mainnet on August 6, 2021. Over the next ~8 months, Beanstalk organically grew to $100 million in market cap and attracted $144 million in long-term incentive liquidity until 2022 Governance utilization on April 17. Since then, Beanstalk Farms and Bean Sprout have worked with the Beanstalk community to prepare protocols for safe replanting and lifting of moratoriums,” it later added.
However, stablecoins are making a strong comeback. According to a statement shared by Beanstalk creator company Publius:
“On the other side of this ordeal, Beanstalk is stronger than ever. This is a testament to the protocol’s credibility and its potential to help enable a permissionless future.”
In addition to this, the company highlighted how it completed two financial audits from “best-in-class smart contract auditing firms” Trail of bits and Halborn.
The organization further noted how it believes the protocol can easily solve existing stablecoin issues and will allow blockchain-based businesses to compete with non-blockchain-based businesses by creating low-volatility commercial blockchain-native assets.
“…this protocol solves existing problems with stablecoins and will allow blockchain-based businesses to finally be able to create low-volatility blockchain-native blockchains with competitive cost of ownership (Beans) Assets compete with non-blockchain-based businesses.”
In addition to this, the company also announced how the protocol will move to community-run multi-signature wallets until it can secure on-chain governance mechanisms.
The blog further adds to how it is in the wild for users to explore and experiment with.
“Now, the Beanstalk experiment is in the wild again. It’s impossible to predict how it will behave, but Beanstalk Farms’ belief in the possibility of a permissionless fiat stablecoin is unwavering.”