It's funny I was saying that DEFI hacks of 30 million are going unreported and now we get a loss of over $180 million for Beanstalk Farms and still no one cares. 

We are now in a clown world where $200 million can disappear in a matter of moments and no one is willing to accept that this is a fuck up, it's all chalked off to the cost of innovation which is such a cop-out in my opinion. 

For those of you who need a summary Beanstalk Farms, a DEFI application on Ethereum that focus on stablecoin, was exploited. A hacker has drained $80 million. As a result, the native cryptocurrency (BEAN) plummeted by more than 80% in minutes and hit a depth of 88% in losses. 

![beanfinancehack.png](https://images.hive.blog/DQmWivPQwQXN95QSDkwzjnjugWMBB5G5NzxsnYfbmZmRv2T/bean-finance-hack.png)

## How the attack was achieved

Beanstalk Farms, DEFI uses a credit-based stablecoin that had a total loss of $182 million in USD value comprising of several tokens and Ethereum in a massive security breach. The flash loan attack, which is very common for lending protocols drained the stablecoin’s total reserve and triggered a collapse. 

Two suspicious governance proposals, BIP-18 and BIP-19, were issued by the exploiter on April 16, 2022. 

The proposals coupled with a security breach were used to maliciously drain BEAN’s reserves or so we are told, the possibility of a rug pull still lingers in my opinion. 

The attacker took $1 billion in a flash loan from the Aave protocol in DAI, USDC and USDT.  Once the loan was approved, it took control of 67% of the protocol’s governance and started approving their own proposals. 

The proposals asked Beanstalk to donate funds to Ukraine. However, it was accompanied by a malicious rider that ultimately drained funds from Beanstalk’s reserves. 


<blockquote class="twitter-tweet"><p lang="en" dir="ltr">1/ The <a href="https://twitter.com/BeanstalkFarms?ref_src=twsrc%5Etfw">@BeanstalkFarms</a> was exploited in a flurry of txs (<a href="https://t.co/PMsdP5dnJG">https://t.co/PMsdP5dnJG</a> and <a href="https://t.co/wyHe3ARZgU">https://t.co/wyHe3ARZgU</a>),<br>leading to the gain of $80+M for the hacker (The protocol loss may be larger), including 24,830 ETH and 36M BEAN.</p>&mdash; PeckShield Inc. (@peckshield) <a href="https://twitter.com/peckshield/status/1515680335769456640?ref_src=twsrc%5Etfw">April 17, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

## Bean Price

The bean price tanked from $1 which is meant to be its pegged price to around $0.10 but recovered to $0.16 cents and in bitcoin terms, it was around 2600 sats to 460 sats. It will be a long time before they can recover that liquidity if anyone still trusts them and if no one comes to bail them out those LPs will have to accept those losses.

<script src="https://widgets.coingecko.com/coingecko-coin-price-chart-widget.js"></script>
<coingecko-coin-price-chart-widget  coin-id="bean" currency="usd" height="300" locale="en"></coingecko-coin-price-chart-widget>

This just shows you the risk in algorithmically backed stablecoins and why the hype around them only creates new honeypots to be exploited.

The six-figure Defi loss has left the protocol with empty reserves. And there is a low likelihood of users’ funds being reinstated with zero financial backing for this protocol. 

I will keep documenting these hacks on my blog as a grim reminder of how web 3, NFT, tokenisation, metaverse, and all these narratives are costing ordinary people millions.

**Sources:**

- [today](https://u.today/beanstalk-suffers-massive-hack-bean-crashes-to-zero)
- [fxstreet.com](https://www.fxstreet.com/cryptocurrencies/news/bean-bleeds-88-overnight-following-182-million-defi-exploit-202204181058)
- [cryptopotato.com](https://cryptopotato.com/beanstalk-farms-lost-180m-in-flash-loan-attack-hacker-donates-250k-usdc-to-ukraine/)

## Have your say

What do you good people of HIVE think? 

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

## Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler  and subscribe to my [fanbase](https://hive.vote/dash.php?i=2&fan=chekohler)


| Safely Store Your Crypto | Deposit $100 & Earn $10 | Earn Interest On Crypto |
| -------- | -------- | -------- |
| [![ledger.jpg](https://files.peakd.com/file/peakd-hive/chekohler/0bRgX2Xj-ledger.png)](https://shop.ledger.com/pages/ledger-nano-x?r=86230752f12e) | [![celsius.jpg](https://images.hive.blog/DQmW6itkWVMDuunSWPJ37GVPNFbS4324P5mDjaxJCMEchi5/celsius.png)](https://celsiusnetwork.app.link/175623c5f1)| [![cryptocom.jpg](https://files.steempeak.com/file/steempeak/chekohler/YXJUY7oD-cryptocom.jpg)](https://crypto.com/app/chekohler)| 

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/hive-167922/@chekohler/bean-and-gone-another-defi-hack-in-2022)