Beanstalk cryptocurrency project robbed after hacker votes to send themself $182 million - Aliens: AI Crypto News & Markets Updates
Logo
Logo

Feed

Coins

About

Latest

Bitcoin

Ethereum

NFT

Gaming

Policy

Blockchain

Altcoins

Beanstalk cryptocurrency project robbed after hacker votes to send themself $182 million

PublisherPublisher
The Verge

Mon, Apr 18, 2022

Banner

Aliens TLDR

On Sunday, an attacker managed to drain around $182 million of cryptocurrency from Beanstalk Farms, a decentralized finance (DeFi) project aimed at balancing the supply and demand of different cryptocurrency assets.

Beanstalk admitted to the attack in a tweet shortly afterward , saying they were “investigating the attack and will make an announcement to the community as soon as possible.” Beanstalk describes itself as a “decentralized credit based stablecoin protocol,” and operates a system where participants earn rewards by contributing funds to a central funding pool (called “the silo”) that is used to balance the value of one token (known as a “bean”) at close to $1.

Like many other DeFi projects, the creators of Beanstalk — a development team called Publius — included a governance mechanism where participants could vote collectively on changes to the code.

The attack was made possible by another DeFi product called a “flash loan,” which allows users to borrow large amounts of cryptocurrency for very short periods of time (minutes or even seconds).

According to analysis from blockchain security firm CertiK, the Beanstalk attacker used a flash loan obtained through the decentralized protocol Aave to borrow close to $1 billion in cryptocurrency assets and exchanged these for enough beans to gain a 67 percent voting stake in the project.

“We are seeing an increasing trend in flash loan attacks this year,” said CertiK CEO and co-founder Ronghui Gu.

In the case of the Beanstalk hack, the Publius team admitted that they had not included any provision to mitigate the possibility of a flash loan attack, although presumably this was not apparent until the situation occurred.

Read full article on Aliens appRead from Original Source

The best experience is on the app

Everything happening in the crypto world, in real time

app

Recommended Stories

Article list item background

European Blockchain Convention 2022: An influential blockchain & crypto event back in Barcelona

1.000+ attendees and 100+ world-class speakers will fly to Barcelona to discuss blockchain, crypto, DeFi, NFTs and Web3  European Blockchain Convention 2022, which will be held on 26-28 June at 5-star hotel Hyatt Regency Barcelona, will welcome 1.000+ attendees at what is the largest edition since the event was launched in 2018.  The three-day event […]
AMB Crypto
·

7h

Altcoin

Recommended Stories

Article

Crypto Fund Managers Are Increasing Bets on $ADA, $DOT, and $XRP: Survey

Article

Should AVAX [Avalanche] be a ‘must-have’ in your crypto portfolio

Article

Buterin ups Optimism after community uproar but here’s the caveat

Article

Hacker Used ‘Social Media Data Leak’ to Steal USD 660K in Crypto from 90 Victims - Police

Article

Block Hires Kristy-Leigh Minehan as Chief Product Officer

Article

Yuga Labs and ApeCoin DAO seem divided as community votes in favor of…

Article

How close are we to the end of Bitcoin’s [BTC] sluggish consolidation phase

The best experience is on the app

Download app to discover exclusive content, live market updates and more.

Get smarter and richer with the Aliens Crypto Digest

Stay informed and entertained, for free.

Follow Aliens

Advertise