Friday, July 19, 2024

Beanstalk stablecoin protocol loses $182 million worth of cryptocurrencies to hacker.

The fourth-largest DeFi Beanstalk stablecoin protocol is the latest platform to be exploited for $182 million. The hacker took off with $182 million worth of Ethereum, BEAN stablecoin, and other cryptocurrencies over the weekend.

PeckShield highlighted that the hacker made off with $80 million from the Ethereum-based project. The hacker used a flash loan to exploit the protocol’s governance mechanism and sent the funds to a wallet that was controlled by them. Through flash loans, users can borrow an asset to make a quick trade and then repay the asset. Basically, its an all-in-one complex transaction that involves multiple protocols.

The Beanstalk team was alerted when the attack occurred but it was too late to stop the attacker. The team temporarily shut off the protocol governance and halted the entire application, but the attacker managed to get away with $76 million from Beanstalk’s liquidity pools. The team was able to burn the rest of the BEAN left in the exploiter’s contract. However, PerkShield said $80 million has already made its way through Tornado Cash.

Following the exploit, Beanstalk protocol has emerged strong with its community’s support. The community has helped by providing suggestions on how to go forward. Beanstalk asked the DeFi community and experts in chain analytics to help the protocol limit the exploiter’s ability to withdraw funds through centralized exchanges. The team highlighted that if the hacker is open to discussion, so is the platform.

The Beanstalk team has created a new proposal with four primary goals. It will focus on securing the enduring success of the protocol’s economic model. The protocol will attract sufficient capital to restart Beanstalk. Moreover, it will preserve as much of each Farmer’s Stalk, Seed, and Pod position as possible. Beanstalk will align new capital with previous Stalk and Pod holders.

Beanstalk is a decentralized credit-based stablecoin. It is yet to give more details about the hack, such as who was most affected by the exploit.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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