Hacked crypto projects are coming out stronger, and Beanstalk is one glowing example. Despite experiencing a catastrophic hack in mid-April, the Ethereum-based project finally relaunched its stablecoin initiative on August 6, 2022, exactly a year after its initial deployment.
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
After losing close to $182 million in a governance hack and being on a four-month sabbatical, Beanstalk stablecoin protocol is finally back after receiving a unanimous thumbs-up from the community.
What is Beanstalk?
Beanstalk is a credit-based stablecoin project with BEAN being its native token. Billed as a game-changer for the stablecoin arena, Beanstalk was initially deployed on the Ethereum mainnet. The BEAN token is supposed to hold parity to the US dollar via an algorithm.
However, instead of using collateral to back the algorithm, Beanstalk uses credit. As a project, Beanstalk plans to alter the future of trustless money by diverging from the traditional path of collateral-based stablecoin backing.
What happened with Beanstalk and how did it stage a comeback?
In April, a hacker exploited a weakness in Beanstalk’s armor, eventually hacking the ecosystem for $182 million. However, rebooting the vision started in May as Beanstalk began planning for a $77 million OTC (over-the-counter) credit line from investors. And despite another stablecoin having its own meltdown (we are talking about Terra), Beanstalk miraculously raised funds and staged a comeback.