@Bean Merchant ‘s Notes for the second class. The original article can be found here.

hey everybody thanks for joining uh the second class looks like we have publius on stage maybe give it a minute or two for everybody else to join but uh publius thanks for thanks for being here yeah thank you for hosting pean merchant of course um i guess i'll give maybe just a little bit of an intro for anybody who wasn't at the last class uh these are kind of you know a little bit more advanced discussions about the beanstalk protocol the goal is for people who are in the audience to kind of go on and be helpful members of the discord for people who are new to answer questions and just to kind of further your own understandings of beanstalk how it works what you can do to help etc so um please bring your questions uh we can bring you on stage or you can ask them in the in any channel maybe in this discussion board channel um but yeah feel free to type your questions or raise your hand and we'll bring people on stage and try to try to get through them all these calls usually last like an hour and uh you know sort of everything's on the agenda but you know again the idea is you know asking questions about you know being stock protocol with you know publius who is for anybody who doesn't know the anonymous developers behind the protocol so um looks like we have you know nine or ten of us here uh let's give it maybe you know a minute or so and then we'll get started if anyone has any lingering questions or anything that they're curious about about how the protocol works or how uh basically anything works um related to beanstalk feel free to raise your hand um and we'll get you up here and we'll try to answer any questions that you have and i do believe that uh in addition bean merchant has a bunch of questions to supplement here from uh that that have been asked uh in other places so uh anyone that has things that are pressing uh feel free and uh we'll bring you up here as appropriate yeah just feel free to think of questions and just raise your hand and we'll bring you on stage um maybe to kind of get the conversation going though publius it might be good to get kind of an update since we last spoke about kind of the health of the protocol i think that was one of the most interesting discussions we had last time and you know it looks like the debt has gone up a little bit um maybe the pod line is like maybe takes a little bit longer now um there's a lot of circulating beans so i wonder you know what are you kind of watching uh since the last time we spoke and how how should we think about the health of the protocol yeah thank you um the best way to do it is maybe to walk through some of the charts that are currently on the website um so if you have your computer open or have access to the website it'll be easy to follow along um but uh the most important one which is the main chart displayed that over the past week the price has continued to oscillate over a dollar um that's very exciting uh in general the continuation of the oscillation and in general somewhat the tightening of the oscillation in a tighter band around one is an indication that things are generally in a good place and if you look at liquidity over a longer period in time either the month or all time you can see that liquidity is sort of approaching a local maximum um other than the major peak in liquidity during the pump uh in september otherwise liquidity is at a local maximum which is a positive indicator beanstalk is slowly building up its liquidity and if you look at the market cap in a similar way the market cap is slowly and steadily rising back up to [Music] close to its peak there was a slight peak at 40 mil um or close to 40 mil during the first day of the pump then it also pumped to 25 million and beanstalk has slowly built from around 5 million market cap back up to now almost 25 million and holding the price or oscillating the bean price over a dollar at a 25 million dollar market cap which is again sort of a local maximum is a positive indication that things are heading in the right direction and or the lastly if we look at the all-time peg crosses um there is an uptick uh or an upward curve in the rate of pad crosses which is a generally positive indication that the system is becoming more stable over time and those are some of the things that we would look at that make us feel that beanstalk is in continuing to trend in a positive direction and that's very exciting the main thing that we want to continue to have happen is for the community to row around beanstalk and the snapshot proposals over the past week the number of them and the quality of them are very exciting so in addition to just the pure statistics on the system on top of that the growth of beanstalk farms and the team around beanstalk is also very exciting yeah that's awesome i i of course have more questions but i just want to reiterate if people have you know follow-up questions on any of that you know please raise your hand we'll definitely call on you or you know drop a question in the chat um i guess publicly the other thing in terms of health of the protocol though is the the bip 2 which is coming up do you want to say a little bit about you know bip two uh what it will do and maybe um yeah why uh why the changes were implemented yeah thank you if two is seems like it's going to pass it has 59 or so stock voting in favor with just under two days remaining in the vote and to remind everyone it's require a 50 vote in favor at least in order to be passed and it will be committable immediately after it's passed so in about 45 hours from now and the immediate changes to beanstalk are that any are vestable pods or any claimable beans or lp from withdrawals that are immediately invested reinvested into beanstalk no longer will the assets that are either harvested or claimed touch your wallet and obviously pods have started to harvest in larger numbers and this will potentially encourage more reinvestment of pods into beanstalk if the calculus is you can harvest your pods and sell them and realize gains or you can re-sow them or deposit them and not realize gains at that point in time that could be very attractive to to farmers so both for the efficiency of the system uh and you know this was a suggestion that was brought to us by a community member uh they thought that this would be generally a positive for farmers and something that would help in stock attract uh larger pools of capital as well because tax efficiency is important to a lot of different uh investors we take our feedback and the feedback from the community very seriously and we wanted to implement that sooner rather than later and we're pleased that that is going to pass and in addition to that there is a minor adjustment to the weather changes um four out of the 24 other change cases will be made slightly more negative which in those four cases uh which are when the debt is high uh the price is greater than one and the debt level is incr excuse me demand for soil is increasing or steady beanstalk will lower the weather more than it currently does and that is mainly intended as the price of bean has stabilized around a dollar given that at least theoretically right now the increase in demand for beans is largely being driven by stability not um a minor increase in weather from 2000 to 2100 um it makes sense for the weather changes uh given that it seems like there's going to be a an excessively high debt level for the foreseeable future uh it makes sense for the changes um to make to be made such that the weather changes are slightly more uh balanced so the weather isn't increasing indefinitely which given that beanstalk is starting to demonstrate utility it doesn't necessarily need to raise the weather as aggressively and on that front we're also pleased that it's passing awesome those are i think yeah great changes okay okay oh sorry i just pressed the become a speaker button i thought it would add me to a queue or something like that but uh sorry for just barging in on the stage here um how are you guys doing uh i just had a question about the seasons to pod clearance metrics so over the course the last week week and a half that's almost doubled um just wanted to get some more input on you know how is that factor calculated and you know what has been moving it so drastically over the past week week and a half sure happy to walk you through that and just so everybody understands to a large extent this is what class is for so if people have technical questions um to a large extent we want to use class to walk people through things that they're unsure of so the best thing to do is for everybody to go to walk through the calculations with us we'll drop a link right now in the discussion board here it comes everyone can go to that link which you can get to in the tool tip describing the seasons to pod clearance and we can walk through some of this math and i'll try to do it in as simple english as possible because obviously uh there are there's some complicated formulas here so yeah and cars just give you some context on where it's even coming from you know obviously looking ahead as we you know as i'm writing articles and trying to create content you know as we try to attract new people to come onto the platform at least from the perspective of getting them to sew just wanted to understand a little bit better how it's calculated because some of the you know the risk returned you know when the implied season supply clearance is you know around a year or you know kind of rounding either up to a year i think that case is a little bit more attractive but you know right now when you average it out it's a little bit more than you know two years where someone would you know earn back their pods and obviously it's still meaningful at the given weather but just from the perspective of explaining it to folks and and attracting the kind of people that want these returns within the course of the year um that's kind of where the question's coming from so i guess just to get started um you know let's kind of just walk through this document um so the first thing to um the first thing to discuss is kind of how we kind of calculate the historical average beans per season um and the way we do this is you know every season the um the subgraph basically computes how many beans goes to um harvests make heart making beans harvestable and goes towards the silo as farmable beans it then basically competes kind of like a running average of um you know what these values are for you know a seven day kind of look back and a 30-day look back so um you know kind of looking at these i think your microphone is a little bit hard for everyone to hear or are other people hearing a lot of static yeah i am hearing that as well okay can you hear me now okay yeah i think that's better oh take it up take it away apologies for that um so yeah on this page that was sent in the discussion board um let's start with the formula for computing n h so lambda t is the current number of lp tokens at the current season u is the number of seasons we're averaging over which the subgraph currently uses a seven day look back and a 30 day look back and then you know we take the summation over the past 7 or 30 days of nh divided by the i so basically what we're computing is the number of harvestable beings per lp per season and essentially the ideology here is we wanted to normalize the lp to the current amount of lp so we basically submit the number of harvestable beans per season over the past seven or 30 days then we of course divide it by the number of seasons we're averaging over to basically get the average harvestable beans per lp per season and then we multiply that number by the current amount of lp which is lambda t so essentially what we're doing is we're computing the average number of harvestable slush farmable beans per season normalized to the current amount of lp that exists in the lp pool and then basically to compute the seasons to harvestable on that we basically determine how many pods are in the pod line if we just scroll down to the pod apy when we're computing z hat f and z hat f is you know if i were to show one b now you would get one plus the weather in pods so basically if we add you know w to d that's how many pounds will be in the pot line if we sow one bean and we divide that by the number of expected average historical harvestable beans to essentially get how many seasons based at this current pace it would take for the pods to become harvestable now it's important to note that you know this is very much so just a stroke like a rough estimation you know because it's based on the assumption that the amount of liquidity in the pool will stay constant for basically time as well as the oscillation from the peg will stay constant for time um but you know the hope is that you know liquidity will not stay constant moving forward and for instance given this formula if the amount of liquidity were to be increased by 20 percent then you know as a reflection the seasons to harvestable would decrease so to say um by the same amount and um you know like we stated this is a very rough estimation um and you know as everything we can continue to evolve this apy calculation going forward if anyone has you know suggestions or comments and just just to answer your specific question on the seasons to our vegetable the implication uh if we go down to the bottom uh of this page there's the formula for z f and just to reiterate the the variables here is d is the number of unharvestable pause so that's the length of the pod line w is the current weather and one of uh the members in our discord highlighted this this should actually be one plus w um and we're going to update that soon um and nh is the number of harvestable pods the number of pods that were harvested over the over you know in in the formula we just described and so the specific things that you're asking about or how how does the seasons until harvestable change over time um things that particularly influence it at this point in time uh is is if the pod line gets very long so over the past week um the pod line has lengthened and that has contributed to the seasons until harvestable getting longer and uh similarly if you and it's a little bit hard to tell if you scale out to the month it would be great if we had a two week on the website but we're not there yet but just over the past two or three days um a period in time where the t-wop was consistently higher than one for more than a day and a half or so um just moved out of the seven-day range and so um that also resulted in a decrease in the number of um our vegetable pods per season um and accordingly uh those two factors have led to an increase in the seasons until until harvest got it okay obviously still wrapping my head around it but from what i'm understanding it's basically the d plus one um plus w figure and yeah it's not surprising that that has grown significantly over the past two weeks like just the weather alone has grown significantly so i imagine um that rate of increase is likely outpacing the rate of increase of the end to the age figure at the bottom is that you know essentially what you're saying and that i guess reflects the turbulence over the last two weeks which is why we've probably seen such a big change in that figure over the last two weeks from like sub 10 000 to now almost i think almost like what 20 20 000 at this point so the main reason for that is the decrease in nh um and separately just to highlight um another major influence on the season still harvestable or seasons to harvest is the liquidity so if the liquidity and the liquidity pool doubled right now that would cut the seasons until harvest in half and so that's another thing that could have an influence but the weather increasing at this point in time is not going to have nearly the same effect on this as uh the pod line increased so uh because the pod line is 45 million uh and the weather is 2 000. um so we're not we're not on the same magnitude um and it should also be w over a hundred so it's really uh like what the math is supposed to be is if you how many pods you have if you sell one bean if you sow one bean with the weather at 2 000 percent you get 21 pounds so it should be one plus 2 000 over 100 um plus 45 million so the weather increasing slightly at this point in time isn't going to have the same effect as an increase in liquidity uh or decrease in liquidity or an increase or decrease in the number of harvestable pods per season average yeah i got it sorry when i meant the weather increasing i um wasn't specifically saying the actual figure and the numerator more so because the weather is increasing your your pod line is also drastically increasing but that's super helpful yeah sorry we got we got to start getting people to dump into that liquidity pool well we were pretty excited that one of the members of the nft club room uh has said that they're interested in sort of taking the lead on that and maybe doing like an lp uh side of uh side of an nft and maybe like a winter edition and something like that gets us very excited so um that could be a good way to get more people um interested in having lp yeah so um on this same uh topic i think to to some people that i've recently shown the project to they've uh i think ipo and chill mentioned this um earlier which was yeah they're saying ah you know if it's longer than a year because people are doing that math you know they know what a season is so they they do the math they say if it's longer than a year it does seem like we'd get diminishing returns with the increase of the weather you know if i get 20x over a year if i get 25 or 30x um now i understand that uh reading through your uh publius you had a really nice uh thread a little bit earlier on this and if you could talk a little bit more about how the lp interacts how the way to pod clearance really isn't by sewing and it's really by by um by more people lping um could you talk a little bit more about that sure um so if we go back to the equation um d is the total number of unharvestable pods so if you sow right now um that is going to increase the time like the seasons until harvest until pot clearance because now there are more pods in the line and so the more people that sew the longer the seasons until pod clearance um now there is some uh counterweight to that in the case where um the demand for soil so the sew-in translates to demand for beans which translates to beans being minted which does potentially increase nh um or n bar h which is the average number of um pods harvested per season and the idea being that if more pods are harvested per season if the denominator is growing then z f bar sorry z f hat is going to be lower so an increase in the number of harvestable pods will make the seasons until pot clearance lower so sewing makes it go up um lping makes it go down and besides something like the the uh i like the winter nft edition i think that'd be great but it is a temporary solution as far as getting more people to to lp how do we incentivize how does beanstalk um incentivize people to uh to i mean i'm doing both but part of that is me you know wanting to see the you know the project succeed um can you talk a little bit more about the incentive structure so first of all as the pathline gets longer um it will become less competitive relative to the silo so as the pods as the pod line grows um because of the the fact that that's in the numerator that will make the seasons until pot clearance go higher and higher and given that the weather is currently over 2 000 and there's almost 6 million soil there's an expectation that the pod line could triple or quadruple in length to 160 million pods and that would cut the pod apy um by 75 potentially and at that point in time the lp becomes much more attractive and so there's just a natural equilibrium between those those rates and there's not necessarily a rush um to get all of this like a new liquidity in and being stock is in a relatively stable position um and furthermore the main benefit of the bnfts is to get more eyes on beanstalk more than anything um in general bean stuff is really focused on attracting liquidity that is going to hang around and it's not necessarily just about incentivizing people to add liquidity to get an nft and so in general our expectation is that as the pavlon continues to grow um the lp will naturally become more attractive um and separate from that this is looking ahead a little bit but we're also starting to think about potentially the curve integration and what that might look like and measuring the time weighted average being access accessor shortage uh in both the uniswapping heath pool and uh some sort of curve pool i'm most likely a curve in three pool um and that would most likely also increase uh the stability of the bean price and at the same time the liquidity around beanstalk i think dumpling this might be helpful just because i've been thinking through some of the the stable coin market mechanics like i i guess it depends on who you're talking to to incentivize like you know i imagine folks who are coming in you know specifically for the nft element of this are probably more on the retail side and you know from a scale perspective i imagine we really do need big numbers and the folks that would likely do big numbers are are likely i i think either institutional folks or you know a couple of people that have been in crypto for a long time with deep pockets like in my mind i i when i look at the lp apy or the bean apy you know right now it's fascinating between like 80 to 100 percent you know to me i compare that to what comparable things would someone who is siloing into bean do and if they're doing it from the perspective of being a saver they're likely thinking through okay well do i deposit usdc into of do i you know what other stablecoin type plays can i make where i'm not taking price risk you know versus you know staking some new ethereum layer 2 token where yes the apy may be competitive but you're still taking price risk on the token um so in my mind i'm thinking like the real incentive here is you get this savings deposit type product but you're getting extremely you know competitive rates relative to what you would get if you were you know staking usdc or taking gusd um so you know in addition to this you know over time yes i i guess if people continue to so at the rate they're selling now that apy comes down and in a backhanded way it makes the lp more attractive but i think even on a fundamental basis like what we need to be doing is you know talking to or or and obviously we're going to be doing this a little bit via the social media stuff but i think one route here one pitch here is you know relative to what you may be doing on the stable coin side for traditional stable coin you know not only are these returns much more attractive but you're also supporting a platform where you're not taking traditional stable coin risk where you know suddenly chapter comes out and says oh by the way we don't actually have any collateral well thank goodness that the snapshot proposal to make you uh the social media manager for beanstalk just passed because uh you said it very very well um so hopefully uh as more eyes continue to take a look at being stock but they also see that value proposition and we and the community can continue to do a better job of that type of messaging i think that yeah that was very well put and um yeah and thanks for the appropriate that was a good explanation too i like sort of what you're saying is the cure for higher prices is higher prices a little bit and i think that it should self-balance um as that makes a lot of sense and i guess i'm not i'm not as worried now about 4 000 weather and people not being too long of a pod line and people not selling because that will ultimately shorten the pod line as more people as more people lp so in general the way bead stock works is it lets the market set the rates but the rates exist at some sort of equilibrium where there's uh either an arbitrage opportunity or some sort of sort of um pricing opportunity where you have to evaluate in this case the liquidity premium of silo versus field but in general everything in beanstalk has similar dynamics to this where things are supposed to balance and over time things balance towards ideal equilibrium no matter how large the forces in any one particular direction at any one particular time or in any order are on things like this where even the pod uh and the sorry the silo in the field uh returns start to uh approach one another um this is just one example but it's good to highlight that this is sort of an underlying and underlying uh ideology or or meta-level uh structure under underneath the economics of being stuck i'm just going to step off the stage because i i have to run um but thank you very much and this has been super super helpful already thank you take care we'll talk soon just to remind everyone if they have questions feel free to raise their hand um you know this is a pretty welcoming environment while we wait for uh other questions another thing uh on my mind is just uh you know maybe a progress update on l2 and stock and seed pools and those are mentioned in a previous call or maybe it was the ama are those still kind of the main priorities or what's kind of what's the update on the development side well l2 and stock and seeds becoming liquid are the major milestones to build towards um but there are lots of different things that will happen between here and there the general idea or structure of how stock and seeds if we're being technical also silo beans deposited beans which will also be fungible and liquid will work is a little bit it's not totally determined but it is generally ironed out and we're happy to explain as much of that as people find interesting the current structure in general is that there will be incentivized pools uh the same way that currently the bean eath pool is incentivized if you deposit the lp tokens in the silo where you will be able to deposit lp tokens with the beanstalk bean seed and bean silo bean pools and earn stock and seeds for them and in general we expect this will create a demand or a use case for lots of the silo beans which currently are just sitting there and instead it will be used then to create a ton of liquidity for stock and seeds and immediately those will become incredibly liquid markets and again stock seeds and silo beans but it gets a little repetitive and all of those will be fungible erc 20 tokens hopefully we will also at some point be able to add the deposits and the withdrawals themselves are going to be erc 1155 tokens which are going to be fungible within a season so we haven't figured out all the details on this front as much for example one unanswered question is when you deposit lp in a season uh how to determine uh if in order to make it fungible within a season we have to set a t-wop for the season but if you deposit in the middle of a season which is obviously what people do t-wop isn't determined so there are minor details like that that we're still thinking through but in general stock and seeds and silo beans that idea is almost ironed out but there's a lot of development that has to go into that and furthermore that's development that will likely happen after our short-term development in the next couple months so seats are definitely in 2022 and they are two which is somewhat separate from talking seeds but there is also a question of how do stock on seats work on layer two um we intend probably we have to we have to have a lot of discussions with the community about which layer two to select but selecting a decentralized player two is probably first and foremost we're thinking about polygon uh arbitrarily those two are probably uh the two that make the most sense that would be simple but then we're also looking at avax and that seems like it would be a little bit more work but potentially uh or more more beneficial in the long run obviously the layer 2 situation is developing in real time and we will continue to evaluate and furthermore the hope is that beanstalk will ultimately support a wide variety of of l2s and the structure of them is that beans stock seeds silo beans pods positive beings soil all of those assets on will basically be fungible across jeffrey chains beanstalk and the silo vote to incorporate so if being stuck adds polygon you'll be able to tap your beans or your stock or your seeds or all of them over to polygon and start earning your interest over there you'll be able to cast your votes over there and trade over there uh probably on quick swap and if this were on polygon at least and there's a there's a lot there's a lot that can be done there um and and that would obviously open up being stock to potentially another variety of people um potential farmers which is good and in terms of ordering we're probably more inclined at least for now and we're curious on the input from the community uh obviously l2 wasn't even really in the original vision but or at least the original white paper but because the because the community stressed its importance we're focusing on it our idea is probably to go to l2 with just beans first before even stocking seeds a liquid but that's that's also an open discussion at the moment that's super helpful i'll just use this as a time as well to plug i know you've mentioned this before but really like high quality solidity developers who maybe have even an economics background i know that's that's something you're looking for um you know people have you know deep bench facility experience uh who can be kind of meaningful contributors i correct me if i'm wrong but that would maybe those introductions might help speed up the development process for for you all yeah we're definitely interested in attracting high quality solidity developers and you know we'll we'll use this as an opportunity to reissue you know a call to anyone that is interested to definitely come hang out in the discord and reach out to us and uh we'll see if there's some way we can get you working on being stuck there's a ton of work to be done and um i know we're kind of coming up on the hour mark here so i want to make sure people who haven't asked a question who are kind of thinking about it get a chance to let's just kind of give it a second if anybody here has a question either you know write it out in the discussion board i can ask it or you know please raise your hand and we'll bring you to the stage it must be a testament to your your good explanations oh there we go okay ask a question hey you guys uh sorry for the uh delay toggling back and forth between raising my hand um publius would you mind talking through a little bit again i know you've talked about this and actually as i look to the discord you guys have covered it over the past couple of weeks the random questions and other amas but just talking a little bit how um how bean is different from other stable coins you know particularly with um with mim and stuff like that i know we've talked a little bit about with usdc and tether and stuff like that but could you just go a little bit high level again of how it varies i know there's there's probably some kind of infographic out there that we have um that i lost in the in the discord somewhere but if you could talk high level about it that'd be great sure thank you for your question the there are a couple different classes of stable coins so let's walk through them and maybe this will be a good way to kind of bookend this and uh you know it'll obviously if there are any other questions we're happy to take them as well but the starting point is there's the fully collateralized off chain model of usdc and tether everyone gets that um die excuse me died took that model and said you can take your on-chain assets deposit them in a cdp a collateralized debt position and mint die against that and they instituted a stability fee um so that the value of the die didn't approach the value of the collateral but instead stayed at a dollar its target price and uh an arbitrage opportunity introduced by where if the value of your collateral falls below the collateralization threshold anybody can liquidate your cdp and basically take the difference and therefore in a decentralized capacity you can have this this debt position be enforced in a way that is typically um safe uh from losing money not always um and mim answer your question is and we may be over simplifying here um so apologies if we're not doing justice to the general uh structure of mem but if you have die um you can mint the just explain how mim works with like using dye as an example if i meant die against ethereum and then i i ethereum with the die i just meant it i can deposit that aetherium in the cdp and buy more you know mint more dye buy more ethereum deposit the ethereum mint more dye buy more ethereum and i can cycle it and in general mim supports cycling and leveraging your deposit to mend more collateral natively and in a very clean ui which is a very nice innovation um however that is still a collateralized model and is fundamentally different than bean um [Music] if you compare beanstalk and bean esd and dsd or basis which is more of an apt comparison because these are non-collateralized stable coins uh there are a couple different major differences but the main one with esd is beanstalk basically views solving the p is less than one problem so what do you do when the price is too low as something that really has to be answered first by what do you do when the price is too high and so there are a couple things that make beanstalk different than esd both in how it launched and how it issues supply in general make it less likely to over issue supply and the price is greater than one some of these things include ish minting beans based on the price and liquidity esd used the price and the total supply which caused a major over inflation and the price was greater than one and in beanstalk there's the season of plenty mechanism which has proven itself as a good way of mitigating inorganic demand when people are pumping uh the price of being when it's over a dollar to try to take advantage of the inorganic demand that is sort of inherent in any of these stable coins these algo stable coins when the price is greater than one so in general the combination of the withdrawal freeze and the season of plenty makes buying beans when it's raining relatively unattractive and therefore beanstalk can mitigate the amount of inorganic demand it faces and therefore mitigate how much it grows in an inorganic fashion and so an example of this is that even though the market cap of beans tapped out at 40 million during the pump the supply only grew 25 million and this this is taking into account the fact that the pump continued for more than a day or two days after it peaked at 40 million so despite that uh the the supply of beanstalk ultimately only grew uh to really where its market cap peaked during the second wave at 25 million which was much more appropriate um than how esd or dsd would have grown um now on the p is less than one side there's also a an important fundamental difference between being stuck in esd or a couple really but it all plays out where in esd it generally applies to dsd as well there was a tragedy of the commons issue created by the fact that the interest rate for lending esd to the to the esd dao was determined by the debt level of esd and therefore if i am interested in lending to esd right now i i am incentivized to wait uh until someone else lends to esd because i will get a higher rate if the interest if the debt level goes up and that created an inefficiency on the lending side which was exacerbated by the fact that all of the coupons for esd debt right were fungible and therefore when uh debt became uh redeemable there was a race to redeem the debt and only the bigger players were able to successfully redeem their debt or at least were able to do it first and that created another major disincentive for people to lend the esd in an efficient way and so in beanstalk the combination of the fact that the weather is set for the whole season has changed only a small amount over time uh makes the incentive to wait uh to lend for in another season uh minimal compared to the disincentive because of the first in first down harvest mechanism there the chances that the pavine gets longer will likely make it less attractive in the future even if the weather is marginally higher and that makes it much more attractive to so now and that creates a more efficient market on the debt side and on basis they had a similar issue with supply increase based on the supply and not the liquidity and on top of that the basis model only supports issuing bonds when the price was below one and that also creates an inefficient market because it's very difficult for people to price debt if the system just went through a major growth cycle and accordingly the system is likely going to have an inefficient debt market over time whereas beanstalk is willing to issue debt every season and changes the weather uh every season based on the price the debt level and the demand for soil and since their soil every season install can get a good sense of where the market is at and make the proper adjustment to the weather so the the interest rate is more likely going to be uh set in a way in beanstalk that is attractive to lend to beanstalk immediately uh whereas in being stopped or at least not just immediately in the case of beanstalk just attracting capital in an efficient manner at an efficient rate great thank you call anybody else uh have any questions okay if not i think we'll probably call it here uh publius thank you so much as always for taking the time this evening and you know we'll all be hanging on the discord so if you were in attendance i recorded you and uh yeah just thanks everybody for making the time thank you for hosting the immersion and thank you for coming and hanging out and asking questions and we look forward to doing this again next week and we'll remind everyone if you want to resume the dow conversation about the t-shirts and the marketing and uh lots of other stuff that develop into beanstalk uh we'll be having a call sometime thursday uh still figuring out the exact time and uh you know thank you thank you everyone i mean we're just so excited by the community forming around beanstalk so uh we're just very grateful for your attendance and your attention and your interest and uh we look forward to continuing to uh you know just do do good work thank you so much all right bye everybody