- Beanstalk DAO has reportedly been exploited for $75 million through a flash loan
- The exploiter might have used a proposal to ‘Give 250k Bean to Ukraine’ to kick-start the exploit
- PeckShiled Inc. has notified the team at Beanstalk of the possible flash loan
- The exploiter has already started transferring some of the Ethereum to Tornado Cash
The DeFi industry is potentially facing a new exploit less than a month after the $625 million hack on Axie Infinity.
According to crypto-twitter member @0revenue, Beanstalk DAO (Beanstalk Farms) has been exploited through a flash loan to the tune of $75 million. Furthermore, the perpetrator of the exploit might have orchestrated the exploit by initiating a proposal to ‘Give 250,000 Bean to Ukraine‘.
PeckShield Inc. Alerts BeanStalk DAO of the DeFi Hack
The team from PeckShield Inc, a blockchain and data analytics company, has also alerted BeanStalk DAO via Twitter, of the possibility of a flash loan on the protocol.
— PeckShield Inc. (@peckshield) April 17, 2022
The transaction shared by PeckShield Inc. is the same one highlighted by crypto-twitter member @0revenue. To note is that there is no official confirmation from either PeckShield or BeanStalk DAO that the flash loan was executed to the tune of $75 million.
However, the transaction details indicate that the exploit could be around that figure as seen in the following screenshot.
Ethereum is Already Being Deposited to Tornado Cash
At the time of writing, the address used to exploit the BeanStalk DAO has an Ethereum balance of 19,955 ETH worth roughly $61 million. Moreover, the Ethereum seems to be in the process of being sent to the mixer service of Tornado Cash in batches of 100 ETH.
More on BeanStalk Farm
BeanStalk is a decentralized credit-based stablecoin protocol. According to the project’s whitepaper, it ‘uses a dynamic peg maintenance mechanism to regularly cross the price of 1 Bean (the Beanstalk ERC-20 Standard stablecoin) over its value peg without centralization or collateral requirements.’
The protocol consists of three interconnecting components: a decentralized price oracle, a decentralized governance system, and a decentralized credit facility.
Additionally, the Bean farm has two components: the Silo and Field. The Silo offers passive yield to the owners of Bean and other whitelisted assets. The Field offers yield opportunities to creditors known as Bean farmers for their work in maintaining the peg.
[Feature image courtesy of Bean.Money]
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.