Cryptocurrency

Stablecoin Protocol ‘Beanstalk’ Loses Over $182M to Hackers

The attack marks the fourth-largest exploit in decentralized finance to date.

Cryptocurrency

Stablecoin Protocol ‘Beanstalk’ Loses Over $182M to Hackers

The attack marks the fourth-largest exploit in decentralized finance to date.

On Sunday, April 17, Ethereum-based stable coin protocol “Beanstalk Farms” was exploited for over $182 million USD. The hacker appears to have used flash loans to execute this attack and the assets that were stolen include Ethereum, the platform’s native stable coin “BEAN”, and other cryptocurrencies.

According to a tweet from blockchain security firm PeckShield, the hacker used the decentralized finance (DeFi) exchange service TornadoCash to pocket $80 million USD of the $180 million USD that was stolen. The attack marks the fourth-largest exploit in decentralized finance to date.

DeFi platforms like TornadoCash offer users complete decentralization in the form of no financial intermediary. With increased risk, users can then use tools like TornadoCash to privately trade, lend, borrow, and earn interest on their crypto assets.

In the case of “Beanstalk,” the hacker deployed flash loan attacks, which is where someone exploits the lending mechanism. While these attacks can come in many forms, a popular method of flash loan attacks is when the attacker manipulates the value of the cryptocurrency they’re trading and tricks the smart contract into thinking it has been repaid when it has not.

Reading about hacks can often make using DeFi tools and platforms feel unsafe, however, like all new advancements, time will be needed to fine-tune the platform’s technology. There has also been much success in the space accredited to flash loans — DeFi companies like “Aave” have issued over $5 billion USD in successful flash loans since 2020, helping users get access to liquidity with less of a barrier than traditional loans.

In a tweet Monday, April 18, “Beanstalk Farms” asked the broader DeFi community to rally behind it as they “engage all efforts to try and move forward.” The protocol is also calling out to experts in chain analytics who might be able to help limit the exploiter’s ability to withdraw funds.

Elsewhere in crypto, AMC Theaters now accepts Dogecoin, Shiba Inu, and more.

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