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HomeAltcoinsBeanstalk seeks $77 million to help it recover from a major assault

Beanstalk seeks $77 million to help it recover from a major assault

The stablecoin Beanstalk team is seeking $77 million in an over-the-counter (OTC) deal from private investors to help the project recover from a massive attack last month.

Beanstalk need loan over-the-counter

The Beanstalk DAO, which controls the stablecoin project, passed a governance resolution on May 7 by allowing the core team to fundraise and spend it to revive the project. This borrowing will result in the production of a new stablecoin token. It will help the project in repaying investors who were impacted by the April 17 hack over time by issuing another token.

The team intends to offer a new token to OTC lenders, saying that it would provide a 500% return until the loan is fully repaid, according to the proposal. However, it is still uncertain who will give money to Beanstalks.

The stablecoin Beanstalk project’s founder Publius stated on Monday that the debt money will go to those who were impacted by last month’s flash loan hack. Due to the hack, there was a theft of $182 million in various crypto assets. The Beanstalk team said that it will require $77 million to compensate investors after freezing and burning all of its own compromised stablecoins.

The fundraising proposal of Beanstalk is going to be implemented at a time when TerraUSD (UST) is experiencing trouble in the market. The problems related to UST stablecoin is capturing the attention of the investors in the market. On Monday, UST lost its dollar peg, falling to $0.61 before returning to $0.90.

Beanstalk to offer pods bonds

Beanstalk used loans to support its value, rather than algorithmic stablecoins or ones that relied on security. While investors would engage in Beanstalk debt assets known as pods. The pods work like time-vested securities that pay high yearly interest in Stalk, the native governance token.

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