I analyzed this transaction when it happened back in April
There was enough liquidity in Uniswap V2. A lot of projects incentivize community organized trading liquidity these days. Larger and larger traders are more willing to buy into projects when the liquidity is large enough to support them, but in the past (and simultaenously now in the present, for projects that bother), providing liquidity had a major challenge of both expense and regulatory issues (promising liquidity to potential buyers and actively courting exchanges has been a prong in being designated as a security, but communities expected funds to be used this way anyway, exchanges know this and extort project founders). So now with AMM technology like Uniswap, this has all been solved. Nobody ever has to deal with crypto exchanges again, and communities don't have to worry about liquidity. This has allowed rapid flourishing of some kinds of projects.
Anyway, there are 71,000,000 BEAN tokens in existence. And if you look at the Uniswap liquidity pool, it has risen to around 30,000,000 BEAN slowly over time.[0] And the day the amount got high enough, the person did a flash loan of $1,000,000,000 in stablecoins and bought everything from the liquidity pool, they got 6,000,000 additional BEAN from another source, deposited 36,000,000 BEAN into Beanstalk to get immediate majority vote of their proposal, which gave them all the funds locked up in Beanstalk to themselves (the $80,000,000 or so), withdrew the bean, sold it back into the liquidity pool (resetting the price to what it was before), returned the $1,000,000,000 and kept the $80,000,000 to themselves. ($250,000 to Ukraine Relief to fulfill the promise of their proposal, but they deposited it all into Tornado cash to never have to figure out if that was good enough like in a court) [1]
vmception|3 years ago
There was enough liquidity in Uniswap V2. A lot of projects incentivize community organized trading liquidity these days. Larger and larger traders are more willing to buy into projects when the liquidity is large enough to support them, but in the past (and simultaenously now in the present, for projects that bother), providing liquidity had a major challenge of both expense and regulatory issues (promising liquidity to potential buyers and actively courting exchanges has been a prong in being designated as a security, but communities expected funds to be used this way anyway, exchanges know this and extort project founders). So now with AMM technology like Uniswap, this has all been solved. Nobody ever has to deal with crypto exchanges again, and communities don't have to worry about liquidity. This has allowed rapid flourishing of some kinds of projects.
Anyway, there are 71,000,000 BEAN tokens in existence. And if you look at the Uniswap liquidity pool, it has risen to around 30,000,000 BEAN slowly over time.[0] And the day the amount got high enough, the person did a flash loan of $1,000,000,000 in stablecoins and bought everything from the liquidity pool, they got 6,000,000 additional BEAN from another source, deposited 36,000,000 BEAN into Beanstalk to get immediate majority vote of their proposal, which gave them all the funds locked up in Beanstalk to themselves (the $80,000,000 or so), withdrew the bean, sold it back into the liquidity pool (resetting the price to what it was before), returned the $1,000,000,000 and kept the $80,000,000 to themselves. ($250,000 to Ukraine Relief to fulfill the promise of their proposal, but they deposited it all into Tornado cash to never have to figure out if that was good enough like in a court) [1]
[0] https://etherscan.io/token/0xdc59ac4fefa32293a95889dc3966828...
[1] https://etherscan.io/tx/0xcd314668aaa9bbfebaf1a0bd2b6553d01d...
chizhik-pyzhik|3 years ago