• Recording
• Notes
• What is the need for a delay? Why wasn't this decided earlier?
• Why delay after communicating to the media? Why not negotiate during the bidding process?
• Does it make sense to stop the momentum we’ve been building?
• Would interested parties be willing to give a letter of intent?
• Why are we delaying if we don't need the full $77 million?
• What are the offers?
• Is a week delay long enough?
• Will 500% weather be unhealthy for the protocol?
• What will the pod rate be?
• How many people are you talking to?
• Could we proceed with the Barn Raise and then refund people if some syndicate wants the whole thing?
• What’s in store for the next few days?
• Why not just push it until mid-May or June?
• How much is the delay due to new vs ongoing discussions?
• Was the idea to delay the barn raise internal or was it specifically requested by potential investors?
• Is new code being deployed to allow for special deals for investment capital?
• Can you elaborate on how these fungible tokens would be different from pods?
• Are these crypto native VCs/funds? Have investors expressed concern over protocol security?
• Are OTC investors being offered special terms that aren't available to the general community?
• Are there risks for a quick dump if there's only a few big funds in the new pod line?
• If there are offers covering the entire $77 million, will the community have a chance to participate?
• Could the VCs be tied into a vesting period?
• When will the protocol restart?
• Can the Barn Raise be canceled if a great offer comes along?
• Can we set the weather going forward based on the results of the Barn Raise?
• Are we vetting the long term commitment of outside funds?

Recording

Notes

What is the need for a delay? Why wasn't this decided earlier?

• There is a lot of optimization happening in real time, and the amount of interest in a negotiated deal materialized between Wednesday and Friday.
• There was enough interest that it would be prudent to give the DAO more time to negotiate.
• The option to delay was presented to see if it was worthwhile to potentially field more incoming offers and maximize the chance that Beanstalk is able to recover as much of the lost funds as possible.

Why delay after communicating to the media? Why not negotiate during the bidding process?

• There are a lot of conversations being had and it didn’t make sense to rush it from our perspective. There were a lot of different people having conversation, and the general consensus was there was a lot of benefit in having some extra time here.
• Very hard to do in practice. You don’t want the DAO accepting bids until it is prepared to honor them.
• No reason you can’t do both OTC deals and the Barn Raise, but you can’t play them against one another simultaneously.

Does it make sense to stop the momentum we’ve been building?

• Publius doesn’t think there will be any stop of momentum, but we will see in practice.

Would interested parties be willing to give a letter of intent?

• It runs both ways, because we have often been asked how we can make sure the DAO honors our agreements during negotiations. So this is uncharted territory to some extent. We should be able to get things well documented.

Why are we delaying if we don't need the full $77 million?

• Not getting the full $77 million is not a problem in the grand scheme of things, but it’s far from optimal. In a perfect world, Beanstalk is able to recapitalize the full amount. At the end of the day, the goal is to make sure that Beanstalk can raise as much of the $77 million as there is demand for.
• Time is something we can be flexible on. A small delay should not significantly compromise momentum, so it’s a reasonable tradeoff for the DAO to have more time to field offers.

What are the offers?

• There are a lot of different terms being talked about. One structure that has seems to have a lot of interest is that Beanstalk would offer some sort of fixed weather across the full $77 million. The concept is that under this idea, instead of issuing pods which are first in first out, every participant in the round would receive some fungible token that would entitle them to their pro rata portion of the third of Bean mints.
• The idea is if you can get a significant amount of capital in around the same terms and minimize the risk that Beanstalk is unable to recapitalize, that would be the way to go.

Is a week delay long enough?

• It’s unclear, but Publius doesn’t think it would be reasonable to push it back any more than that at the moment. If it ends up requiring a few more days to finalize some details, we can discuss another delay then.

Will 500% weather be unhealthy for the protocol?

• It’s ultimately subjective, and some people might say that if the system issues another 462 million pods that it is no longer attractive to lend to the system. But in practice, if you look at how the Beans are expected to be distributed in thirds, the valuation of Beanstalk is similar to what people were lending at prior to the attacks.

What will the pod rate be?

• If we raise the full $77 million at 500% weather, it would be somewhere around 1100%. Close to where it was about a week prior to the attack.

How many people are you talking to?

• Hard to give a good answer, because we’ve spoken with 3 or 4 dozen firms and a decent amount of them are seriously interested. We don’t want to be misleading and say people are definitely in, because until there’s pen to paper, who really knows? But the short answer is it would be in Beanstalk’s best interest to see what happens rather than rushing forward with the Barn Raise. That would be just passing up potentially interesting opportunities.

Could we proceed with the Barn Raise and then refund people if some syndicate wants the whole thing?

• At some point you’re going to start to eat your own tail there. You can’t be negotiating against yourself and have people that might want to be in the Barn Raise hesitant because now they want to negotiate OTC. That’s not going to be an optimal way for Beanstalk to negotiate.

What’s in store for the next few days?

• A lot of calls, trying to bring in as much as possible to maximize the chances of Beanstalk succeeding.

Why not just push it until mid-May or June?

• We have to keep playing it in real time. Pushing it back any further might not have any advantage.
• Hopefully an additional week will give funds more time to look at Beanstalk, and they may participate in the Barn Raise even if they don’t do a private deal.

How much is the delay due to new vs ongoing discussions?

• A healthy mix of both. There’s been enough interest from the conversations that are being had that it’s substantive, and then there’s enough conversations that have not been had yet that you know in theory the whole thing could get done. If this weren’t possible, there’d be no reason to delay.

Was the idea to delay the barn raise internal or was it specifically requested by potential investors?

• Nobody said they couldn’t get it done by Monday, but it was very clear that a lot of people couldn’t get it done by Monday. It was a matter of reading the room.

Is new code being deployed to allow for special deals for investment capital?

• Beanstalk is autonomous, so there does need to be code changes to allow for slight changes in how Beanstalk operates. But substantively, the distribution of Bean mints is done in a way where it’s pretty easy to implement this change.

Can you elaborate on how these fungible tokens would be different from pods?

• The fungible tokens would receive a portion of bean mint sort of like Stalk, but they would only receive mints for a period of time. So they would mimic owning Pods in a pro rata portion across the whole Barn Raise pod line effectively.

Are these crypto native VCs/funds? Have investors expressed concern over protocol security?

• There is a diverse set of interest with Beanstalk being covered in the Wall Street Journal. We’re receiving inquiries from a lot of different places.
• People have expressed concern over security, but generally people seem comfortable with the move to a community run multi-sig for the time being. Everyone is still a long term believer in on-chain decentralized governance, but nobody is really in a rush too re-implement it until everyone is confident in it.

Are OTC investors being offered special terms that aren't available to the general community?

• No additional special terms. Just a pro rata share of 1/3 of Bean mints for the next 1.35 billion to 1.5 billion Beans minted, depending on the weather.

Are there risks for a quick dump if there's only a few big funds in the new pod line?

• Definitely, and it wouldn’t make sense to fill this with one, two or even three funds. But once you get to 5+ participants, given the pro rata distribution, it becomes less likely they all dump at the same time unless they were trying to coordinate maliciously.

If there are offers covering the entire $77 million, will the community have a chance to participate?

• If there is excess demand, we could make a cut out for the community or something like that. Something to think about.

Could the VCs be tied into a vesting period?

• In practice there is sort of a vesting period because the tokens they’re receiving are only worth a share of new Bean mints over time. So the vesting is the time it takes for the Beans to be minted.

When will the protocol restart?

• Upon completion of the Barn Raise, the DAO will vote on when to restart. It is worth noting that the vast majority of VC interests have expressed no rush in restarting the protocol and they seem to be much more inclined top wait until the completion of the Trail of Bits and Halborn audits.

Can the Barn Raise be canceled if a great offer comes along?

• It would probably be inappropriate for the DAO to renege on the terms of the Barn Raise after the start. In theory it would be possible, but it doesn’t seem realistic.

Can we set the weather going forward based on the results of the Barn Raise?

• There is a case for it and against it. Beanstalk itself doesn’t care what the weather it is paying. The only thing it cares about is that it is able to attract lenders.
• It depends on the valuation investors place on Beanstalk and how they view the difference between the pro rata immediate yield and the first in first out nature of the Pod Line.
• It would probably be better to overpay for soil at the end of the Pod Line, rather than start out too low and be unable to attract lenders.

Are we vetting the long term commitment of outside funds?

• As of right now, we’re taking everything we can get. But if we do have excess demand at some point, it might make sense to choose the most aligned investors.