On Saturday, August 6, the Beanstalk Farm Stablecoin Protocol, which was hacked in April of this year, was restarted for its first anniversary. The creators promise that today’s coin has been improved and has become stronger.
The Bean stablecoin was launched on August 6, 2021, but suspended its operation due to hacking on April 17, 2022. From August to April, according to the company, they managed to reach a market capitalization of $100 million.
💡 Beanstalk was initially deployed to Ethereum mainnet on August 6, 2021. In the ~8 months that followed, Beanstalk organically grew to $100M in market cap and attracted $144M in long-term incentivized liquidity until the governance exploit on April 17, 2022. Since then, Beanstalk Farms and Bean Sprout have worked with the Beanstalk community to prepare the protocol for a safe Replant and Unpause.
We have noticed recently that quite a large number of projects are being exploited, for example, NIRV, Audius, and Nomad. Fortunately projects can recover, which as in the case for Beanstalk Farm, their team has been working on recovery over the past months.
As we wrote earlier, due to the exploit of Beanstalk, approximately $182 million was lost which represented various crypto assets. Now, before resuming work back in July, the company conducted an audit together with the companies Trail of Bits and Halborn.
It is worth noting that one of the founders, Parth Patel, pointed out that Bean should not be perceived as a classic stablecoin and be rigidly tied to a fiat currency.
“I think I would call it a non-convertible low volatility token — algorithmic stablecoin is a trigger word these days and I don’t blame people,” — said Patel.
This case is interesting because it clearly demonstrates how a project can have a ‘life cycle’ in just a year: start, achieve the first successes, completely stop working because of exploit and start from scratch again.
Hopefully, we will soon tell you about the revival of other projects that have been exploited, as well as continue to monitor the success of Beanstalk. What other projects do you think will be able to overcome the crisis and resume effective work?