The Beanstalk project has relaunched BEAN, a decentralized stablecoin that uses credit instead of collateral to secure the USD peg.
The Beanstalk team claims that before the launch, two audit companies checked the changes in the project’s code. Protocol governance has been moved to a community-managed multisig wallet until a secure on-chain governance mechanism is implemented.
“The Beanstalk experiment is working again. It is impossible to predict how it will work, but Beanstalk Farms’ belief in the possibility of creating an unregistered stablecoin is unshakable. Eliminating the collateral requirement could be a catalyst for reliability, unlocking the potential of decentralized finance for all.” says company blog.
The restart of the stablecoin became possible due to the fact that users of the project, who own more than 99% of BEAN tokens, during the voting on August 5
supported stablecoin restart.
The Beanstalk team began the relaunch process back in May, when they offered to raise $77 million in an over-the-counter loan from private investors. The fundraiser began the same week that Terra’s algorithmic stablecoin, TerraUSD, collapsed, wiping out more than $40 billion of its investment value.
In mid-April, a hacker used Beanstalk’s governance mechanism to steal assets. Then, because of the exploit, the project lost $182 million.
Source: Bits
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