Beanstalk stablecoin protocol 'Barn Raise' seeks to recover $77 million in lost funds

Beanstalk stablecoin protocol 'Barn Raise' seeks to recover $77 million in lost funds

Beanstalk was hit by a $182 million flash loan attack in April.

Ethereum-based stablecoin protocol Beanstalk will launch a fundraising campaign on June 6 to restore $77 million in liquidity lost to a governance exploit that siphoned $182 million from the project.

In April, an attacker bought a majority stake in Beanstalk tokens and used that position to exploit the governance structure and send all Beanstalk funds to himself.

The Barn Raise fundraiser begins June 6 at 12 p.m. ET and continues until all so-called "Fertilizer" tokens are sold, the press release states.

Beanstalk will sell 77 million Fertilizer tokens for $1 USDC each and borrow that $77 million in exchange for debt at an interest rate of up to 500%. Fertilizer holders will receive a pro-rata share of one-third of the newly minted Beans, Beanstalk's native stablecoin. The minutes said that about $10 million in funds (or 15% of available Fertilizer tokens) have already been pledged.

As part of the fundraising, Beanstalk will also launch a series of 10,000 non-fungible tokens (NFT), the Barn Raise NFT Collection, which will be made available to the first participants who contribute at least $1,000 USDC before the protocol's relaunch.

Beanstalk will officially resume operations in early July after two separate security reviews are completed.

The Beanstalk DAO said it is working to strengthen the governance structure by moving to a community-operated multisig wallet managed by nine Beanstalk community members - a short-term solution until a more robust security mechanism is developed, tested and implemented.

Beanstalk was part of a wave of high-profile attacks in early 2022 that included a loss of more than $326 million to blockchain bridge Wormhole and a $625 million attack on Axie Infinity's Ronin blockchain that U.S. authorities linked to North Korea.