News
06 Aug 2022

Beanstalk stablecoin relaunches four months after $182 million exploit

Beanstalk stablecoin relaunches four months after $182 million exploit

The team behind the Beanstalk stablecoin has relaunched the project nearly four months after it lost $182 million in an exploit.

The network was due to “unpause” at 12 p.m. ET today, according to a statement from the project. People holding more than 99% of the project’s stalk token backed the resurrection in a vote that closed on Friday.

Beanstalk bills its bean token as a decentralized stablecoin that uses credit rather than collateral to maintain something close to parity with the US dollar. The project hit the news in mid-April after a hacker exploited its governance mechanism to steal from the project.

Changes to the project’s code have been audited by two firms and governance has been moved to a community-run multisig wallet until a secure on-chain governance mechanism can be implemented, Beanstalk said in the statement.

The Beanstalk team began the process to reboot the stablecoin back in May, when it proposed raising $77 million in an over-the-counter loan from private investors.

The fundraising came just as stablecoins were gaining attention for all the wrong reasons: the same week saw Terra’s algorithmic stablecoin, TerraUSD, implode in a spectacular destruction of more than $40 billion of investor value.

Users invest in Beanstalk debt assets known as “pods” that function like time-vested bonds, paying a high annual interest.

Updates to clarify the relationship between the Beanstalk project and the bean token. 

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