Beanstalk Farms stablecoin protocol has relaunched on August 6 after being hit by a $77 million governance attack in April.
Following the governance exploit and flash loan attack in April on Beanstalk Farms, the protocol and its governance were put on hold until August 6, when they were reopened in an occasion known as the “Replant.”
In a statement, Beanstalk claimed that the experience had made it stronger than before, most likely referring to the governance and security of the protocol.
“Beanstalk has come out of this experience more resilient than ever. The BEAN stablecoin and protocol’s creators, Publius, called it “a testament to the creditworthiness of the system and its ability to help actualize a permissionless future.”
In order to wait for “a safe on-chain governance mechanism to be established,” Publius said it had now relocated protocol governance to a community-run multisig wallet.
Additionally, the project claimed to have finished two protocol audits from “top tier smart contract auditing organizations” Trail of Bits and Halborn.
The spokesman also emphasized that new application development is already underway on the network, with the Root Protocol having announced a $9 million seed round on July 26 to create marketplaces for finance, commerce, and sports betting on Beanstalk.
The project needs to make significant progress before it can equal its prior metrics from before the breach. The market valuation of Beanstalk’s algo-stablecoin BEAN reached a high of $100 million in mid-April, but as of this writing it is just $284,426 and the asset is trading at a low of $0.0039, according to statistics from CoinGecko.
The project has also had only sporadic success recovering the monies that were improperly obtained in April. As of June 5, the project had amassed $10 million through fundraising to replace the funds that had been taken.
But since algorithmically backed stablecoins are also up for debate, it’s unclear how long-term BEAN will be viable. Even back in June, Publius emphasized such, as he noted
“At present, it is unclear whether Beanstalk is good enough to sustain itself in perpetuity. There still remain some inefficiencies in the model. However, Beanstalk is likely good enough to continue to sustain itself in the short term.”
A system like Beanstalk has the drawback of working until it doesn’t. It’s impossible to tell for sure if it works; all you can say is that it has in the past. It’s unsettling to have so much ambiguity, especially without a clear definition of success, Publius continued.
Numerous teams have developed a number of solutions to get around the centralization issues and collateral needs that come with creating a scaled stablecoin.
In order to function and maintain its planned $1 peg, Beanstalk’s variant depends on a decentralized credit facility, decentralized pricing oracle, and governance community.
