A credit-based protocol for stablecoins, Beanstalk Farms, was exploited for nearly $76 million worth in cryptocurrency on 18th April. The platform has asserted to provide a reward of up to 10% to the offenders in return for the swindled funds. The platform informed the attackers about the offer on its official Twitter account through an on-chain note, a day after. It was proposed by the firm that the attackers should deliver 90% of the swindled funds back to the multi-signature wallet of Beanstalk Farms.
As a result of this move, the attackers will be permitted to have the rest of the 10% in the form of a whitehat reward (an offer provided on the behalf of the venues as an incentive to the people for highlighting the weaknesses as well as security exploits. It was formerly reported that the exploit of $76M, which was originally considered to comprise $182M, was not thought to be carried out through a hack because the governance procedures, as well as the smart contracts, were utilized by the attacker for this purpose to transact.
On Monday, in a podcast, the founder of Beanstalk taking into account Michael Montoya, Brendan Sanderson, and Benjamin Weintraub acknowledged that vulnerabilities in the design of the platform’s structure consequently paved the way toward this end. On Tuesday, a statement asserted that a formerly-anonymous problem in the governance procedure of Beanstalk counted to be the mechanism utilized for the respective exploit.
The statement additionally mentioned that the venue momentarily closed the protocol governance and halted Beanstalk when it was devising a plan to get restarted with a way forward. Weintraub (the spokesperson of the company) discussed during the podcast the next strategy of the firm, which takes into account some kind of fundraising.
He presented several possibilities to elevate the needed funds if the exploiters remain unsuccessful in returning the funds, like providing a uniquely built token or reducing the token holdings of the consumers, such as Pods, Beans, and Stalk. Beans, Stalk, and Pods are tokens based on ERC-20 that are utilized to run a credit-based protocol of stablecoins.
Nonetheless, it was admitted by Weintraub that the particular structure to enhance the capital is even now in the discussions, however, remained optimistic regarding the survivability of the protocol. He claimed that this situation is not the worst to be experienced.
James Thompson