The Ethereum-based algorithmic stablecoin project Beanstalk Farms has relaunched its protocol just under four months after being taken offline following a devastating $77 million governance exploit.
The protocol and its governance have been on hiatus since April following the governance exploit and the flash loan attackbut they were relaunched starting Saturday at an event called “Replant.”
In an announcement shared with Cointelegraph, Beanstalk said that it has come out of the test stronger than ever, likely in reference to the governance and security of the protocol.
“Beanstalk has come out the other side of this trial stronger than ever. It’s a testament to the solvency of the protocol and its potential to help create a permissionless future,” Publius said.the group of developers behind the stablecoin and the BEAN protocol.
Publius stated that it has now moved protocol governance to a community multisig wallet until “a secure on-chain governance mechanism can be implemented.”
The team also stated that has completed two audits of the protocol by “the best smart contract auditing companies”: at Trail of Bits and Halborn.
The spokesman also noted that the development of new applications on the network is already underway. The Root Protocol announced a $9 million seed round on July 26 to develop financial, trading, and sports betting markets on Beanstalk.
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
Today, Beanstalk Farms is pleased to announce that Beanstalk has been discontinued on the first anniversary of its initial rollout.
The project has a long way to go to match the metrics it achieved before the hack. In mid-April, Beanstalk’s algoblecoin, BEAN, reached a market capitalization of $100 million. However, at the time of writing, the figure is just $284,426, and the asset is a long way from $1 parity at $0.0039, according to data from CoinGecko.
The project has also had limited success in recovering the funds stolen in the April exploit. As of June 5, the project had raised $10 million through a campaign to recover stolen funds.
However, as the jury is still out on algorithm-backed stablecoins, the long-term sustainability of BEAN remains to be seen.. Publius even highlighted it in June, noting:
“Currently, it’s not clear whether Beanstalk is good enough to keep going in perpetuity. There are still some inefficiencies in your model. However, Beanstalk is likely to be good enough to continue to hold in the short term.”
“The thing about a system like Beanstalk is that it works until it stops working. You can never know if it really works; you only know that it has worked so far. So much uncertainty is scary, especially without a clear definition of success,” added Publius.
Many projects have come up with various ways to avoid the collateral requirements and centralization issues associated with launching a scalable stablecoin.
The Beanstalk variant relies on a decentralized credit service, a decentralized price oracle, and a governance community to operate and hover around your desired $1 peg.
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