Holded StableCoin Beanstalk brings $ 9 million for Market Protocol

Holded StableCoin Beanstalk brings $ 9 million for Market Protocol

Beanstalk, the Ethereum Native StableCoin, which was hacked in April for $ 180 million, has to resume the company because it is fighting for recapitalization. But the investors seem to have left the past-the Root market protocol developed by Beanstalk received $ 9 million in start-up financing to develop a toll-free decentralized marketplace.

As announced on Tuesday, the round of financing was listed by Road Capital, Nima Capital, Soma Capital and Manifest Crypto.

Beanstalk suffered one of the biggest crypto hacks of the year when a so-called flash loan temporarily gave a malicious user enough money to control the governance of the protocol. Since then, the protocol has closed the governance gap with multi-signature security, in which five Validators selected by Nine of Nine of Beanstalk developers have to validate.

Parth Patel, founding member of Root Labs, emphasized that the financing round was for root and not for Beanstalk, although the development teams are intertwined.

"The possibilities of investing in Beanstalk are the same for everyone," Patel told Blockworks and added that the financing round was intended to "contribute to the provision of liquidity in the markets that we build on BANGALK".

roots fundraising campaign takes place weeks before Beanstalk's “Repplanting” when the protocol is reopened after it has been stopped since April. In the meantime, Beanstalk has carried out a "Barn Raise" recapitalization campaign, in which fertilizer tokens are sold, which are given interest on the basis of Bean-token-Mins.

The Barn Raise continues until all compromised investors are repaid, although according to Patel, only 15 % of the $ 77 million hole have been filled.

root said that it spent a "significant part" of its start -up financing for fertilizers and hopes to be able to use the bean yield to finance his state treasury.

root will initially only accommodate a fertilizer secondary market and a Beanstalk interest rabbit market, although the developers hope to create markets for asset futures, non-fungible tokens (NFTS) as well as sports and political voting bets.

root hopes to attract users by enabling market participants to act without fees. Patel said root had talks with polygon to use the upcoming ZKEVM to validate transactions. In the best case, a partnership with the scaling "Holy Grail" could significantly reduce the costs of root.

root will make transactions for users free of charge by either subsidizing the market itself or asking the Beanstalk Dao to pay the invoice, said Patel.

The root protocol is to go live by the end of the year. Beanstalk launched on August 6th.

Publius, the developer group behind the StableCoin, carefully commented on the prospects of the ecosystem in June in a blog post in June

"The special thing about a system like Beanstalk is that it works until it doesn't work anymore. You can never really know whether it works, just that it has worked so far," wrote Publius.

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The article Hacked Stablecoin Beanstalk Raises $ 9m for Market Protocol is not a financial advice.