Happy ends wanted to kidnap the Beanstalk
Happy ends wanted to kidnap the Beanstalk
We are pretty optimistic that there is a way forward here. [But] we start with what the problem is. Beanstalk were stolen about $ 76 million yesterday. Now as much money as possible has to be recovered.
This is the stand of Beanstalk Farms, a decentralized financial platform, the entire collateral of which was skimmed up at the weekend. Despite the lack of cash funds and a token that has lost 92 percent of its value since Sunday at midnight, the project founders remain optimistic because they have a plan.
Your plan is "a kind of fundraising".
Beanstalk is a small player in the StableCoin universe, the novelty of which is that it does not promise one-to-one security. Rather than claims to have supported every coin with hard financial assets, it uses an algorithm that tries to maintain a dollar bond by shaping a bean when the price increases over $ 1 and increases the interest rates for changeable guilty titles when it is below. There is an extended metaphor that contains soil, seasons, harvesting, weather, etc.
Beans owners also qualify for an equity token, stalk, which votes on changes to the Beanstalk protocol. On Saturday, a Stalk owner submitted a Mickey Finn smart contract that would donate to Ukraine's war efforts. The person then bought more than two thirds of the governance tokens with a flash loan of 1 billion USD and thus obtained the majority required for the coordination by changing the Beanstalk protocol before transferring $ 250,000 from the Beanstalk into Ukraine and the rest into a private wallet.
How many commentators emphasized was not really a hack. Speaking of the theft is controversial. Everything worked as planned; It's just that the design was really, really bad. No defined regulation of property or voting rights meant that nothing could prevent the attacker from extracting about $ 76 million in ether together with Beans, which at that time had a nominal value of around $ 100 million, but whose current value is almost nothing ($ 0.08 on Coingecko at the Pixel period). The execution of the job took less than 13 seconds.
In a podcast on the Spotify page of Beanstalk immediately after the raid, the moderator pretended to be Benjamin Weintrub and identified the other co-founders as Brendan Sanderson and Michael Montoya. He said they "had no participation and no previous knowledge of the attack".
Was the susceptibility to flash loans taken into account in advance? Yes, if maybe not in the right way. In a web stream from Beanstalk Octomob on April 12, a user asked about Flash Loan attacks regarding price integrity. The committee was confident that every window would be too tight for price manipulations, since flash loans requires that borrowed money be returned in the same transaction. The strength of the governance code was not mentioned.
as is as it is, in a subsequent podcast on Tuesday, the spokesman (who sounds like grabbing, although he does not identify himself) spoke in detail about how the team remains confident of restarting the project by using a donation mechanism that "proved" too much ":
It has gone through the defect and the debt mechanism has proven its ability to attract lender. So the question is how we can use the credit history of the share to attract up to $ 76 million in liquidity to stuff this hole?
Some details still need to be worked out. How to attract new money for a loan platform with zero liquidity, a lot of outdated junk token owners and a small brand call problem is "very unclear at the moment," said the spokesman. "And so the exact structure, as Beanstalk should actually raise this capital, is still in the air."
Nevertheless, the proposal you have thought is a kind of DeB-for-for-equity swap that includes the output of a new tokens. In technical jargon, the podcast host outlines a one-time token edition using the established mechanism to reset prices. A third of the new beans that were shaped over this new channel would flow into a reparation fund, whereby the old owners would be asked to make a discount on the basis of the amount collected. Exit punishments would represent a hurdle for anyone who intends to take the first opportunity to get away with the money - at least theoretically.
"This is not the worst place where you can stay, people," says the podcast moderator. "It is much better that this happened than it happened, unlike four weeks, when the protocol had put on another billion dollars. And it is much more difficult to close a gap of one billion dollars than a gap of $ 76 million.
Source: Financial Times