kaal:claim:6819121-005

In the Beanstalk Farms exploit of April 2022, an attacker borrowed roughly one billion dollars in flash loans to hold two-thirds of governance tokens for a single block and drained roughly 182 million dollars, showing that token-weighted governance offers no defense against temporary token acquisition.

The Beanstalk Farms exploit of April 17, 2022, in which an attacker borrowed approximately one billion dollars in stablecoin flash loans to acquire two-thirds of the protocol's governance tokens for a single block and used that supermajority to pass a malicious proposal that drained approximately 182 million dollars from the protocol, illustrates the pattern in stark form

Wulf A. Kaal, The Institutional Deficit in Decentralized Autonomous Organizations - An Empirical Analysis (2026), II. Theoretical Framework, p. 7
https://ssrn.com/abstract=6819121 · source PDF

Wulf A. Kaal, The Institutional Deficit in Decentralized Autonomous Organizations - An Empirical Analysis (2026). SSRN: https://ssrn.com/abstract=6819121

• documented flash-loan governance attack

empiricalsupport: evidenceddaoconsensus-and-securitydefirisk-and-incentives

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