• Recordings
• Notes
• What is Root?
• How does Root make money?
• What price oracle will be used for the prediction market?
• What does success look like for Root?
• What will the Root token look like?
• Advantages to the Root NFT market place
• How do markets built on top of Beanstalk affect Beanstalk?
• What are the next steps for the replant process?
• What will farmers have to do upon replant?
• What happens if you do not pick your unripe assets?
• What is the farm and how will it be used?
• Will there be a transaction builder UI on http://app.bean.money for the Farm function?
• Are there any marketing events from now until Replant?
• Root using funds for the Barn Raise
• Is it concerning that Trail of Bits did not audit the entire code?
• Conversation about a bank built on top of Beanstalk
• Transcript

Recordings

Notes

What is Root?

• A generalized marketplace protocol
• Will be able to support:
• arbitrary oracle settled markets
• BDV based derivative markets
• NFT goods and service markets
• Interest rate swap market
• Started as an intellectual exercise on different ways to create fixed yields on top of Beanstalk.

How does Root make money?

• Won't be charging maker or taker fees. Designed as a rent-free public good utility for Beanstalk and Beanstalk users.
• Root will make money through Beanstalk seignorage.
• It is important to grow demand and use cases on top of Beans aside from just liquidity provision.
• Root (the entity, not the protocol) also plans to help provide liquidity and make markets.

What price oracle will be used for the prediction market?

• In the short term, integrating something like Chainlink might be an option.
• In the long run, we are going to want to develop a Beanstalk native oracle.

What does success look like for Root?

• No reason why Root and Beanstalk can't do the highest volume of on-chain prediction markets.

What will the Root token look like?

• We've been focused on raising capital and preparing Beanstalk to get to this point.
• We will be putting a lot more thought into tokenomics in the coming months.
• We have to make sure we coordinate with legal to make sure we are compliant with regulations.

Advantages to the Root NFT market place

• Unlike Opensea, it will be able to support financial NFTs
• Will offer no maker or taker fees

How do markets built on top of Beanstalk affect Beanstalk?

• Root is being built in a generalized fashion.
• It can help Beanstalk become a more efficient base layer by bringing some degree of price discovery to the Silo, similar to what you see with the pod marketplace.
• Makes sense for real economic activity to happen on top of the Silo.
• Exciting to see another protocol being built on top of Beanstalk with Beans as the base money of that protocol.

What are the next steps for the replant process?

• Shared the BIP-21 draft and whitepaper draft, and we'd like to propose it on Snapshot Friday
• Vote will pass in 7 days with a majority, or less than 7 days when a supermajority has voted
• When that is passed, the Publius wallet will execute the transactions that make up the Water Treatment Plan, aka the migration of the Beanstalk state to the new system.
• Pre-exploit non-deposited Beans will be deleted and reissued in the new system.
• Deposits will be migrated to the new system; deleted and reissued as Unripe assets.
• Stalk and seeds will be recalculated.
• New tokens will be deployed:
• BEAN
• BEAN3CRV
• urBEAN
• urBEAN3CRV
• Initial liquidity will be added, old tokens will be removed from the whitelist and new tokens added to the whitelist.
• Ownership of Beanstalk will be transferred to the BCM (Beanstalk Community Multisig)
• Hard to say how long all that will take, but once it is over they will replant Beanstalk, deploying new facet contracts and the initialize script for the replanted Beanstalk.
• Publius will propose to upgrade Beanstalk to the BCM, and after verification the BCM will execute the upgrade and add the USDC stored in the multisig as liquidity.
• Beanstalk will print beans at a ratio of about 0.88 of the USDC, which was derived from the pre-exploit BDV.
• All the USDC and Beans will be added as liquidity to the BEAN:3CRV pool, at which point Beanstalk will be upgraded and all functionality will be active pending the sunrise call planned for noon on August 6th.
• After the unpause, the first season will mint no Beans, because the TWAP needs to be populated. Starting in the 2nd season after unpause 1% of the deltaB will be minted. This will increase by 1% every season until it reaches 100%.

What will farmers have to do upon replant?

• Pick and deposit their Beans if they want.

What happens if you do not pick your unripe assets?

• You will not receive yield from the Silo. If your assets were not deposited pre-exploit, they will not automatically be deposited. They will be claimable assets, where you just have to claim them and deposit.

What is the farm and how will it be used?

• The farm function is a way for Beanstalk to link together arbitrary actions that would previously have to be explicitly coded.
• This allows for more flexibility for users to perform any action with whatever currency they want, as long as there is a path for it.
• An example is adding deposited BEAN3CRV directly from ETH. It's actually a very complicated transaction involving many steps, but using the farm function it is seamless for the user.
• You won't have to submit multiple approvals and call multiple functions. It's just one transaction and you're done.
• Related to the farm is the ability to store assets within Beanstalk with internal balances that support any token.
• Using internal balances minimizes transactions and cuts down on gas cost.

Will there be a transaction builder UI on http://app.bean.money for the Farm function?

• The UI team has done a great job with it.
• As a user, you don't really need to know what's going on under the hood.
• The most useful paths are pre-defined, but it might take some time to address every case.
• Does make sense to eventually have a generalized transaction builder.

Are there any marketing events from now until Replant?

• We are reaching out to media contacts to let them know when the Unpause will be, and as for media appearances and interviews we plan on doing them after the Unpause so that we can talk about how it went.

Root using funds for the Barn Raise

• Root plans on being a market maker on Beanstalk, so it makes sense to have liquidity in the system.

Is it concerning that Trail of Bits did not audit the entire code?

• It is unfortunate, given how long the audit took. All we can really say is that we're performing as much testing as we can, using a variety of different types of tests, with those specific facets.
• The Silo facet has been around a while and not much is new.
• The Curve facet is new. The main concern there is that it would spend more than has been allocated, but it looks like Halborn did spend time looking at those specific pain points.
• We have pretty good coverage on the Convert facets as well.
• The fact that Trail of Bits didn't get to these facets should be considered by the community, but we've been doing everything we can since the audit started and we feel we're in a pretty good place.

Conversation about a bank built on top of Beanstalk

• Beanstalk would allow users to deposit Beans in the Silo, which could then be lent out with a variable interest rate based on the price of BEAN.
• Red beans would take the place of the Beans in the Silo, and receive 5 seeds.
• Users could only withdraw if there were no outstanding loans.
• Collateral would have to be a whitelisted asset.
• Would allow the supply to expand or contract as needed to aid in peg maintenance.

Transcript

hello publius the answer how are you all as well here how's everything with you doing great very excited well it's uh it's a big day at the farm we have big news yeah it was pretty cool uh pretty cool news today there's real things being built on top of beanstalk how how exciting is that and and just the beginning um i actually wanted to dedicate maybe some some time of this class or as much time as it needs um to go over root um i see mr manifold is here mr manfred you want to come up and maybe we can like fire fire some questions about it let's do that hi mr manifold hey matt how are you brother well as well how's everything with you good busy day clearly uh but you know looks like we're everyone's firing on all cylinders so good definitely first of all i wanted to congratulate you uh and the root team again about on the successful seed round very exciting you know for beanstalk and you know we wish you all the success uh you know your successes are success of course thanks mod i appreciate that yeah um you know we're rolling this together team team effort and we're excited to build i you know genuinely think that there's so many cool new applications and markets you can build on top of the beanstalk and it's really gonna some up and definitely so uh yeah let's let's get after it definitely before we start uh to the audience as always if anyone has any questions feel free to drop them on the town hall chat otherwise i'll start with a few manifold can you briefly tell us what is root third thing so root is a generalized marketplace protocol um that you know we want to be able to support uh arbitrary oracle settled markets you know bdd based derivative markets uh nft represented goods and service or asset markets um and you know we really just want to build uh and offer markets that are in demand um and so you know while it's generalizable and you know we're building in such a way you know we can we can roll out you know different types of markets we really just primarily want to do things that that there's real demand for so you know obviously you know we're thinking about this fertilizer market to help unlock liquidity in the fertilizer market uh post re replant um which which i think is very important um and then you know root kind of started as this um out of this like intellectual exercise on like okay what are the different ways you can kind of generate and create fixed yields uh on top of bean stock and and so um you know having some type of interest rate swap market uh is also uh kind of something where we're actively designing and thinking about right now too okay great um and root is a zero fee um you know marketplace can you tell us how how does root make money if there are no fees charged to its users yeah so you know we aren't going to be charging any maker or taker fees we want to make it like designed as this rent-free public good uh utility for bean stock and bead stock users um such that you know there's an ensure there's like minimal um you know like friction you know minimal cost to farmers and do it in a way that encourages you know maximal utilization um and so you know i guess i guess root you know you know makes money like like you know kind of every other farmer makes money which is you know through beanstalk senorage and you know uh it's important for us to grow demand and use cases on top of beans aside from just liquidity provision um and things that are more circular within you know beanstalk's native system um because ultimately that's how healthy and you know for beans to really gain traction it needs to be diverse you know group of utilities that you know farmers can use um but then also you know we plan to help provide liquidity to and make markets um and so you know that's kind of the other lever here where you know root you know not root the protocol but root the entity you know may may be participating in bean stock you know helping helping provide liquidity and markets for for users and create you know things like the silo yield curve or else at least be a player in that creation okay one of the markets uh that the truth uh would facilitate is like a prediction a prediction market or a bidding market when it comes to events and not you know things that are either yes or no if this thing happened or not what price article would root use you know to to get to get this answer totally so you know short term you know there's there's you know there's there's chain link there's there's teller you know there's a handful of others that you know root could you know i think fairly seamlessly integrate with um however you know each of those might have their own sets of trade-offs and you know for bean stock and or root it might not be the perfect oracle solution but it could be a functional one um but i do think over time in the long term you know we are collectively going to want to develop you know a beanstalk native oracle um which you know uh c c can be used and you know and with in regards to kind of any protocol voting on top of bead stock um and you know something that you know includes uh maybe grown stock um staking or or you know an incentive system that you know utilizes be native assets versus uh external third-party assets for payment um so you know eventually it just becomes another revenue source for farmers okay and i see publius asked a question what does success look like for root oh man that's a that's a hard question and a personal question i think so you know i i think for me personally what success looks like is you know i think it's it's also a question of timing so what does success look like in the next 12 months let's just think about predictions markets well you know i i see no reason why you know root and bean stock collectively can't be doing you know the most prediction market volume on chain um and so you know that's that's one personal goal of mine um you know if you kind of look at the landscape and you look at poly market you look at auger um there's there's just you know certain liquidity constraints that are providing volume and you know i think that you know prediction markets for one are just this this use case that you know clearly makes sense on beanstalk um and so you know it's in our hands um and we're in the kind of the driver's seat to make it work so you know kind of doing the most volume for for you know predict you know certain predictions markets would would and you know it's hard to talk past you know and crypto moves so fast so for me in particular it's hard to talk you know in longer term timeframes but at least in the next year or so you know would like to be doing you know the highest volume on chain on any blockchain for for some of these markets we support austin asks um is there going to be a root token and if yes what's the distribution of it going to look like and what would this token be used for just governance or would it have a use so yeah so you know token tokenomics you know all of doubt like a lot of this stuff you know just going to be straightforward is still very unclear very much so unclear um you know we've been you know pretty much a hundred percent the last two months you know mostly focused on on capital raising um and and you know preparing beanstalk to get to this point um and you know so those are things that we're going to be putting a lot more thought into into the coming months um you know we we obviously do want to you know have a vibrant community and diverse uh group of you know aligned uh participants within root um it's just you know a matter of you know getting getting the time to to start working on it and then you know obviously you know guidance from from legal and you know just doing things correctly from a regulatory perspective so you know a lot a lot of things there to unpack um but you know austin uh you know definitely want there to to be um some shared uh let's say ownership at some point for root okay we wanted to touch on the nft uh marketplace that you've touched you've mentioned in the announcement uh and compare it a little bit to openc my understanding is that openc does not facilitate um financial nfts do you see this as as an edge uh for a mark for an nft marketplace build on route that one it will facilitate financial nfcs and then number two it's also permissionless you know um yeah you know what poo poo police actually just told me about this i was unaware that open c didn't support financial nfts um but you know with with that now being known uh um you know obviously i think that's a that's a major competitive advantage um you know i think you know jpeg nfts are just a very very very small subset of what you know the use case uh for nfts is going to be going forward um and so you know if open seas limiting themselves on that front um you know i think that's that's just one of many different advantages that you know having a decentralized marketplace with a decentralized order book um could achieve so so absolutely and then of course you know also this notion that fees all fees are you know it on in crypto really for for most things 10 to zero um so we're just kind of getting right to the chase and we're pricing uh zero maker zero taker fees right i'll i'll move my question now uh i guess to publius publish what would you know having markets built on top of bean stock what does that mean to bean stock and you know to the bean economy in general there's a a lot of different things and one of the things that at least to me is so exciting is that root seems to be being built in a more generalized fashion and if people recall the original uh discussion around root was as some sort of interest rate swap or that was what the chatter had been and what that looks like is that's one of the markets that can be formed on beanstalk and when we when we want to create a more efficient base layer of beans and be in price stability having a more efficient market for beans that in and of itself is pretty cool so the fact that route will be able to facilitate interest rate swaps in the silo such that over time some sort of interest rate uh or yield curve on the silo can be formed just like the yield curve in the pod market is sort of a pod yield curve uh the silo is is a place that currently is pretty inefficient and there's nowhere for the market to price i think one thing that stands out as very interesting is an interest rate swap market that uh would facilitate over time a much more efficient base bean layer but on top of that uh root presents real utility or the prospect of real utility for beings everyone has beens or lp tokens or some combination thereof a value being denominated value in the silo and other than maintaining the pay and maximizing your being senior age thus far there isn't that much to do and when you think about real economic activity happening uh on top of beans it does make sense for that to happen on top of the silo and the concept that root will facilitate silo members who are holding deposit assets collecting bean senior ridge to now go out and do additional things on top of that uh and make bets on nfl sunday for example which as many of you know has been something that has always been top of mind for us when when thinking about what what why why we started being stuck it's like well you can't really use prediction markets on chain why because it's too expensive there's too much opportunity cost associated with making these prediction markets but there's no opportunity cost associated with making a prediction look at it making a market uh if you have a silo position so it's just a very exciting lots of different things that not just prediction markets not just bean stock markets now you have the concept of nfts uh i'm not too familiar with uh where that's going to be honest i haven't thought about the nft layer of root much but it seems like there's a lot of different places this is going to go and it's pretty cool and also just exciting that beanstalk has a another protocol being built on top of it with beans as the base money of that protocol that in and of itself is is very cool at exciting times and you know more exciting to come in the future thank you manifold for the root bit and you know if others have any questions please feel feel free to drop them in the in the town hall chat let's move now to to to beanstalk and and the replant publius can you maybe summarize what are the steps that are happening in the next few days from you know uh the bip to humidity going down to the water treatment process and finally the replanting and unposing of beanstalk yeah i can walk through that um so you know as everyone knows we shared the bip 21 draft with everyone yesterday which included the pull request with the code changes a draft of the white paper and a draft of ip21 and you know we're looking in field fielding conversation questions and debate over the next few days and we look to formally propose that on snapshot on friday um you know around noon pending you know uh you know the success of all future testing um when that's proposed the idea is that um you know it will be proposed and lasts for seven days and um you know upon passing of bip 21 which either looks like greater than majority of stock votes in favor after seven days or a super majority in less than seven days when that's passed the publius wallet will execute a series of transactions that perform the water treatment plan also known as the migration of the beanstalk state to the new system this is a variety of things first off um you know it deletes all pre-exploited non-deposited beans this means deleting harvestable beans this means deleting orders and deleting withdrawals so the reason we're doing this is because all of these beans can kind of be considered as circular beans and in this process we want to optimize around you know first off consistency that every being pre-exploit maps us closely to its post exploit counterpart but also simplicity and the fact that remapping old withdrawals to be unripe being withdrawals is more complicated than just deleting them and reissuing them through the merkle tree as we're doing um so following that you know we'll be uh migrating all deposits and this also is a couple things um it's you know basically removing all old deposits and redepositing them as unripe beans in lp um the code is actually just going to do a remapping of mapping the old storage locations to the unripe deposits but we're going to be emitting a series of events for kind of consistency across the contract so every deposit that exists remapped has a corresponding event saying your account deposited this much of this token in this season once we've migrated all the deposits we'll apply the prune to everyone and kind of recalculate and redenominate everyone's stock and seeds in accordance with the prune and then we'll go ahead and deploy the new bean token the new unripe bean token the new unripe bean three curve token and the new bean three curve uh meta pool we'll add a little bit of initial liquidity to that um you know we'll d white list the old tokens and whitelist all four new tokens from the silo and that will kind of culminate in the end of the water treatment um with publius transferring ownership of beanstalk to the bcm the beanstalk community multisig and transferring ownership of the fertilizer contract to beanstalk itself at this point immediately following and again this is all happening kind of synchronously upon the passing of bip 21. um you know it's a lot of transactions so it's hard to say kind of how long it will actually take to execute um but you can kind of imagine that it'll synchronously be executed until it's completed so once the water treatment plan is over immediately we're gonna replant beanstalk and what this means is deploying the new facet contracts and the initialize script for the replanted beanstalk so publius after transferring ownership to the bcm will then propose to upgrade beanstalk to the bcm the bcm will then you know upon reviewing bip 21 ensuring that it matches the expected bip in accordance with the proposal in the on chain or the source code on github will then execute the upgrade and add all of the usdc stored in the multisig as liquidity so it will you know essentially transfer that usdc to beanstalk beanstalk will mint a bunch of beans at you know a ratio of about 0.88 which was derived from the pre-exploit bdv and then it will take all that usdc and all those beans and add it as the initial liquidity in the bean 3 curve pool so at this point we've upgraded beanstalk all functionality is active except for the see the sunrise the sunrise college bean stock is still paused and we've deployed the new tokens including the new bean token the new bm3 curve metapod and added initial liquidity which you know is gonna be equal to in dollar value you know a bit less than double the the usdc uh that's added um so at this point we're gonna wait until uh august 6th around noon and at that point if everything is still you know working correctly and as expected the bcm will proceed with unpausing beanstalk the reason we want a little bit of time there is we want farmers to have you know unripe beans and unripe being three curve to have time to pick and deposit their you know uh their you know uh pickable unripe assets before the seasoning calls start and style of rewards start getting distributed um and essentially you know we don't want to incur any sort of opportunity cost to them for kind of not knowing you know not being able to pick and deposit in time if we immediately proceed with unpausing beanstalk um when beanstalk is unpaused the next season will be available for being called uh between one to two hours um upon on pausing so if that's you know 6 37 p.m the first sunrise will be available at 8 p.m i mean in this case it'll be around noon so you know you can expect the first season called to be uh you know at around 2 p.m eastern and once beanstalk is unpaused just to kind of touch on the minting schedule the first season that is called from 674 to 675 will meant zero beans this is because in order to take the t-wop delta b over the course of the season we need to first initialize that and that initialization happens on the first season called unpause then in the second season when we move to 676 that will meant one percent of the delta b and it will continue up to a hundred um so hopefully you know that was all clear and coherent and provides a good picture to everyone of you know what's expected uh you know what we expect to happen uh you know bearing any further you know uh you know hiccups or unexpected roadblocks that's quite quite detailed thank you for taking us through it um might be worth mentioning that there's going to be a new user interface for the protocol we intend on using this week's down meeting to maybe give a bit of a demo so users or farmers can familiarize themselves a little bit with uh with with what the new user interface will look like and correct me if i'm wrong uh publius the only action that's needed from now until unpause is to pick your unripe beans correct if you want to pick them this is correct um in the pruning process uh you know grown stock will be recalculated all existing silo deposits will be migrated over to the unripe equivalent you know plots are still existing fertilizer is still there so the only thing you'll need to do is pick and you know deposit uh or just leave them as pickable you don't have to pick and deposit you can chop them but you know the penalty is immediate you know initially going to be 100 so that's likely not a good uh you know idea um but that is correct mod okay yeah that's that's great once again if anyone has any question if anything is is not clear um feel free to drop it in the town hall chat okay james asks a question if you don't pick and deposit uh you know your unripe beans will you still receive yield from the silo you will not um and this kind of goes with the general thought of you know we want consistency uh you know kind of pre and post exploit if your you know assets were not deposited you know pre-exploit they should not then automatically be deposited um so kind of you will have to manually pick them and deposit them into the silo uh you know when they're distributed they're kind of in the form of a claimable um you know asset to where you just have to you know it's stored in beanstalk there's kind of a merkle tree uh which is you know a hash of you know everyone's balances um such that we can basically store a bunch of ious in one kind of on-chain hash um so you know you'll be able to just claim your pickable assets and immediately deposit them um but if you do not do that you will not get you okay on publish my understanding is there are going to be some new features um some of them that were already been discussed and planned before they exploit but you know users or farmers will have the first opportunity or time to use it post on post and one of them is the concept of the farm can you maybe summarize that to us tell us you know what what is the farm and how how will that be used yeah totally um so the farm function real simply um you know is a function that you know allows people to call um you know so what this means is you know it's basically a function that takes an array of other function calls and these function calls can be any function that exists within the beanstalk diamond so previously you know we had let's take the case of so so previously we had the ability to sew from each or so from beans there were two separate functions in the code one was called so which so directly from beans and there was a separate function called buy and sew which allows you to buy on unit swap only through ethereum and deposit we soon ran into a very you know we soon ran into like a scale a scalability problem where obviously as we added more pools and more functionality it became a mess to add kind of composability across all the different types of swaps and you know we had the claim version uh we actually had four base so functions there was the so the buy and sew the claim and so and the claim buy and sell and kind of based on what you input into the ui the ui would pick which function to call um so you can imagine we already have four iterations of the so function if we tried to add kind of a swap on curve you know we would have even more iterations and eventually you know it would just exponentially grow so we basically wanted to you know we came together how can we break this apart how can we break this into you know separate but you know modular composable blocks such that we can just you know execute then you know some some arbitrary function calls sequentially and this is kind of where we landed on the farm function so now in beanstalk when you do a buy and so beans instead of having a specific buy and so function you call the farm function and within the farm function you call the swap on curve function and then the sow function so basically within beanstalk uh you know we're implementing uh you know the curve pipeline and the curve pipeline is basically a wrapper interface within beanstalk to curve which allows you to do various functionality in any curve pool through a beanstalk function now this includes exchanging you know exchanging for the underlying assets in a metapool adding liquidity removing liquidity so through beanstalk you can now natively transact you know pretty much in any curve pool which means within the farm function we can use the that curve functionality within the same transaction as you know a beanstalk action say and be able to build them together to allow people to kind of take any arbitrary input and assuming we have you know a path to get from one asset to the other you can do that so you know uh one feature we're really excited about is the ability to add deposited being three curve directly from eth now this is on actually a very complicated transaction through curve routing and um you know kind of with the farm we're able to build this together and you know what that actually looks like is it first calls in beanstalk there's a wrap e function which takes eth and it wraps it and then we take that wrap thief and we trade it in the tri-crypt pool for usdt and then we take that usdt and we add it as liquidity in the three curve pool and then we take that liquidity and add it as liquidity into being three curve metapol and then we take that bm3 curve lp token and deposit it in the silo now that's like a lot of specific steps when we're dealing at like a individual action level instead now we can just call the farm function and call this list of actions and kind of have them all execute secret sequentially in one transaction and allow you to kind of move more freely and with a much better user experience between all the different uh states that assets can be in across beanstalk so with this you don't have to approve the contract for each individual token um you don't have to call multiple functions it's just one transaction and it's done and kind of correlated to the farm we have the ability to store assets within bean stock in the internal balances um you know kind on your behalf so whereas before we had wrapped beans in beanstalk which means beanstalk holds a bean on your behalf and essentially is an iou that's kind of targeted towards you basically you know you send beanstalk a bean it's like i hold the bean and i know you own this bean so you can take it back at any time um and now so because we have these in beanstalk these internal balances that support any kind of arbitrary erc20 token um all of the independent function calls that we listed earlier you know the rapd the tradee to usct the ad that is liquidity can all use the internal balances to talk to each other so when you call rap thief it takes that east wraps it leaves that raft in your internal balance and then when you swap that to usdt it takes that eth from your internal balance and converts it to usdt which it then deposits your internal balance and so on and so on um which minimizes the amount of token transfers that we need to do overall as you know the only interaction is to and from beanstalk back and forth and leads to kind of overall gas efficiency which we're really excited about okay we have a few questions uh let's let's take them in the downhill chat uh copybean asks are there any marketing twitter spaces etc planned for the next 10 days from a pr perspective we will be reaching out to our contacts in the media or to journalists and let them know about the unpause date then when it comes to appearances or interviews uh the thinking or the strategy is to do them uh post on post so let's say two days uh uh after after one pose being stuck and that will give us the ability or the opportunity to talk about you know the performance of uh of being and bean stock on its own it's on poles sync asks um we're gonna need some tutorial videos for all of these new functionality agreed with that we'll start with a demo uh in thursday's down meeting and definitely we can have some you know tutorials or videos binology asks um he quotes a line uh from the the blocks the blocks uh story or coverage about root uh or asking or saying that the invested capital would be used as part of the barn raids um um the idea of fruit using uh that capital uh or the seed round in in beanstalk is because root eventually plans on on making markets on beanstalk so it makes sense for it to have to have those or that capital and bin stock in beans in order for it to be able to you know facilitate or make or create those markets the second question asks from the trail of bit audit where it says that the trailer will then have enough time to look closely into the curve uh convert and silo facets um and halberd seems to have looked into them to some degree he asks does this give you any concern given that these are mission critical and you know they weren't covered publish you can maybe comment on that um you know it uh it is unfortunate that you know trailer bits wasn't able to you know look too closely into some of the facets um and you know it's quite it's quite unfortunate you know given how much you know time uh the audit went for um you know um there's not much else to say beyond kind of like uh you know we're doing everything we can to continuously test both through the ui through command line you know running large scale test simulations unit tests all different types of tests we can conceive um you know with those faucets specifically you know the silo facet has been a facet that's been around for a lot of time and it is quite complex but there isn't too much changing there uh you know based on what previously was their pre-exploit and the curve facet is fully new and kind of you know the the i guess the only concern you would have with it is that it could somehow you know use more money that is directly allocated to it um and you know uh it seems like hal bourne did a you know a good job looking at those specific pain points when tokens are being transferred you know to and from the user uh to beanstalk and you know from being stock to and from the the curve pools themselves um you know which which definitely you know uh instills confidence you know that they did a good job looking at that but you know we've also you know done significant testing on our end to you know try to test every function with as many different types of inputs to try to break uh beanstalk as much as possible and from the testing perspective you know of course we take the mindset such that we're assuming that you know there's no one else looking at this and we want to try to do the best to find all the bugs ourselves um and you know uh we're you know we're doing everything we can on that end with the convert facet um you know it is there is a lot changing there with generalized convert um and the implementation of the being three curve convert um but you know that code has been in place for a long time and you know we've been running it you know internally for you know since significantly before the exploit um and you know feel like we we have pretty good coverage on that as well um you know obviously it's something though uh you know the fact that trailer bits did not look at these facets is something the community should consider and you know kind of collectively come to a decision on whether it's anything of concern to them uh or not but you know personally uh you know we're pretty pleased with the state of you know testing beanstalk and you know have been doing nothing but testing for you know the past you know pretty much since the audit started and so you know what we we feel you know that that we're you know in a pretty good place swedish redbeans um asks well i guess maybe this is more of a thinking um question if we could have a generalized transaction you know builder so and correct me if i'm wrong sweetheart it means i think what he means there is just similar to what the farm is doing but we would allow you know users to create their own transactions or you know build their own transaction on a ui builder let me know if that makes sense and then what do you think about that yeah uh you know think that makes a lot of sense um you know honestly uh you know the farm is you know a fantastic addition but it's an absolute mess from a ui perspective so you know kudos to the ui team silo chad cool beans sweet red beans for you know doing their best to kind of work with the farm function and make it kind of legible from a user interaction perspective um you know kind of one limitation however though is you know when we're grooming an experience for users we obviously have to abstract away a lot of that complexity you know kind of that you know as a user you don't really need to know what's happening under the hood you just want to know where your assets are coming from where they're going be able to make sense of the inputs the outputs kind of know what's going on and you know although the form is capable of everything um you know with the ui uh you know we've only you know kind of predefined paths uh for which you know users can uh transact across um you know ones that we feel like are the most valuable and important and over time we can continue to add more cases and cases to the ui uh but at some point it kind of does warrant you know a generalized transaction builder that is generalized you know for the advanced user to be able to fully customize uh you know their own farm function as they would want it as you know there will be a couple you know paths that are you know going to take a little bit longer to get off the ground and you know as we add more and more pipelines um we expect the number of possibilities you know possible farm functions to grow even further and you know it's kind of inevitable that there will be demand for some kind of generalized transaction builder okay i think we reached the end of the the questions if anyone else has you know other questions feel free to drop them on the town hall chat okay i'm tempted to start a separate discussion other other than you know the the unposed or the replant and look a little bit ahead of you know you know the future of being soccer or where are we at and and build up on on on a question um or an idea that we discussed briefly um last week which was a bank on top of beanstalk to control you know the money supply uh of of beanstalk and presented differently about having been sucked do it uh uh itself uh publius are you up for discussing this now or do you think we might wanna you know have that some other time i'm up to discuss anything you want mod uh i think it would be helpful uh you know if you wanna set the scene you should probably explain the whole concept to everyone and then we can take it from there great okay all right so the idea um um when we're on this current version or what are we thinking of it right now is what if the silo introduces a new kind of account so right now the way that we're interacting with the seller is think of it as a current account where people can deposit and withdraw at any time what if the silo has a new account that's a savings account and people deposit justin beans and then what bean salt does with that is that it uses those beans and it allows anyone to come and borrow those beans against against a collateral when there when there is demand for beans so the price of beans is uh you know above one and we bean stock wants to increase uh the money supply what it would do is it reduces the interest rate at which it offers you know those loans all the way down to zero let's say to encourage people to come in and you know borrow borrow beans against uh curatorial and and this way beanstalk is able to increase its supply without having to mint new beans then when the demand for beans drops and and the pressure beans is below one and bin sock wants to reduce the supply what it would do is it would increase the interest rate on those loans to encourage people to close down their loans and you know reduce the supply of beans or charge you know a high interest rate and that would naturally also help uh bring back the price of being back to one or reduce the supply of beans because you know you're bringing it back by burning burning beans through that interest rate that you're taking so to summarize it um what what you're doing here is you're you're expanding and contracting the supply of beans uh through loans and you're controlling it by either increasing uh the interest rate or reducing the interest rate uh to encourage loans or or you know encourage people to close to close back their loans that allows you to expand and contract the supply of beans without having to mint new beans nor not issuing a credit so in effect it becomes like an extra tool uh for tech maintenance for beanstalk to use let me know if this makes sense and and what are your thoughts so to better understand what you're talking about the question is that i have this around the minting of new beans and i see that alex also asked it in the town hall chat which is that so instead of people that have deposited beans uh in the silo or deposited lp tokens in the silo that people can deposit beans in the silo or now you're suggesting that people can deposit other collateral and do what yeah so those who have beens uh can choose to either put them you know in the normal accounts that we have or into the savings account uh that people can then come and take loans against it so now you have you know you can either buy beans or borrow beans and and those will have two different you know risk profiles or two different people so you wouldn't think of them as the same ones of course some people who might have bought now will want to borrow and the opposite but in general you'd expect them to be separate people those who want to buy are different from those who want to want to borrow the way for you to borrow is that if you borrow beans you're going to have to put collateral you know against it and then bean stock holds that collateral until until you close your lawn and so the person that is putting beans in this savings account to lend out the beans are they receiving the silo yield are they receiving the silo yield plus a premium minus a premium how does that work they they just receive the silo yield but they get five seeds instead of you know four seeds or two seeds so they get more seeds but they receive equal equal seniority just as everyone else and how does that work if the beans are being lent out if they're being lent out you can't withdraw if there are outstanding loans so because you're in the savings account you can only withdraw if there are no outstanding loans if there are outstanding loans you'll have to wait but the beans are being lent to somebody someone's borrowing those beans so how how can they be receiving the silo yield if the beans are being lent out great yes okay so um in effect the way that it would happen is let's say there are 1 000 beans deposited in the in the savings account what bean stock would do is it would have you know those 1 000 beans that will create 1 000 red beans and those red beans are white listed in the silo this will free up the other 1000 beans for anyone to come and borrow them so in effect every red bean is backed by either an actual real bean that is not outside yet or by collateral since someone borrowed it and you know put collateral against it and why would beanstalk or why would the dow whitelist the red beans for deposit the same reason it white lists any any other asset because it helps with peg maintenance and so now let's get into the idea of how that helps with peg maintenance so just to restate the situation uh somebody comes and deposits beans in the in this red bean account uh this red bean account and and for some reason why would beanstalk offer more seeds than for a normal lp yeah because those beans now have you know have you have a use or a utility so these those beans that in the savings account given that you are you know giving up it's it's how liquid they are or you know your opportunity of being able to withdraw them at any time since they're being giving out on loans um stockholders uh profit from either the interest rate that's giving out or from being able to you know contract them and reduce uh the the money supply of bean so whenever whenever you you loan out uh beans this is better than liquidity provided sure maybe three seeds but we can't wait on this because the concept is some you get instead of just straight depositing beans there's some benefit to depositing uh these red beans that the protocol can lend out instead and then the concept is that the protocol assuming that we it's done at the beanstalk level the beans stay deposited in the silo but can also be borrowed and they can be borrowed in the form of these red beans which can be minted against this collateral is that correct to an extent maybe i'll i'll rephrase it again whenever anything gets into the into the savings account uh say this you know someone wants to deposit 1 000 beans into the saving account bean stock would mint red beans 1 000 red beans you know and keep those you know 1 000 red beans and it's in this ledger so it has you know stock and seed and then it has those other 1000 beans free you know outside of the silo for anyone to come and borrow them so every red bean is backed by an actual bean or if someone you know borrowed an actual bean and instead of it there's collateral then it this red bean is backed by a connector instead of a bean if you want to think of it in the way like traditional banks work it's they just basically like issue issue credit so it becomes like you know just like a ledger in in a database so you know we say that we have those beans but they're actually no real beans okay so somebody deposits this bean into the red bean that's called the red bean silo and then beanstalk mints a red bean into the silo which it then keeps as a bean and then it also allows someone to borrow that being the actual being because someone else is putting collateral up against it so someone now puts up ether lusd or some other collateral die usdc and then they borrow in a collateralized form they borrow against uh they borrow against their position correct for simplicity let's say that the collateral will only be you know three curve it will it will have to be a white listed asset because this is how you charge interest by swapping the collateral with with whatever pool that you have and burn the beans um so let's say let's say we only have you know b and three curve and you can only take collateral and three curves so how would that work so let's let's say um we have like you know 1000 um loans outside at like 10 percent um whenever you charge interest you would take you know like one free curve swap it for beans and then take that beans and burn it that way you know you reduce the supply of beans or you accrued interest for all stockholders got it so there's some there's some extra rake on top of on for having this outstanding position yeah it's the interest rate at which you took that one it could be zero but if the beans are burned then how is the the red beans backed by the beans oh you're saying because it comes from the three curve it comes from the other acid yeah so the collateral is occasionally burned yes all the way up to zero unless someone closes their lawn but if no one closes their lawn then at the end of the day you know we burn because we give someone you know a bean we eventually burnt it because they have we used order quadrant to burn it is the collateral type only being related assets like being three curve or could it be usdc in theory it can be anything but for simplicity like we might want to to to think or keep it as only a white listed asset and the purpose of this is so that we can have increased cell pressure when the price is above one or one how it helps with peg maintenance and so it essentially front runs the protocol and kind of pushing down the the price faster um you know given that there's you know demand to make the spread at the current interest rate so it can be in two ways because you can expand and contract supply so let's say it's time where you want to expand supply then you would offer zero interest rates or low low interest rates it depends on you know how fast people are interested in it but the interest rate will keep decreasing to encourage more and more people to take loans um and as they take loans you know the supply of beans increases so you'd expect the price of being to to drop and then when the opposite happens you start increasing the interest rate you know keep increasing it so that people who already have outstanding loans are encouraged to return their loans and close and close it down and that would reduce the supply of if they don't close their lawns then you keep burning their collateral and that will naturally you know it's like you're closing their loans for them totally makes sense i mean it seems a little bit like uh you know kind of like die cdp model where they have their fluctuating interest rate uh you know as the price of die moves above and below one and but instead of you know kind of liquidating uh against dye the the acid that's liquidated immediately gets transport you know either buys back beans or gets converted into strictly beans and then just burns them uh you know makes sense yeah alex asks uh i think there are a few questions maybe i've missed them but one of the questions is like how would that have an effect on on liquidity providers or lps in general there will be two you think of them as two different like risk profile people because those who borrow beans are restrained by the interest rate of you know of whatever interest rate is that changes so there'll be different versus those who buy beans and can hold it so if you you know if you wanted to long beans and and you bought you you borrowed a lot of beans and then the price of bean is down the interest rate keeps going up you don't have the option to hold your beans or keep them you're gonna be forced to you know return it or pay a very high interest rate so they're different they're different people or different profiles from it the one thing that would happen is yes you're not going to issue you know as much credit and you're not going to also mint as much uh depending on how many people borrow and you know close their loans but that will also depend on you know maybe maybe there is no one at all interested in borrowing beans or maybe there are a lot who are interested in borrowing beans but the market will decide that so i think what's even more interesting is implementing this on top of both beans and lp tokens where you still have the base assets getting converted such that peg the peg is maintained maximally at the protocol level at the macro level but then it is really interesting not to have some sort of layer of people can borrow beans and put up collateral to sell them at an interest rate where the trade is profitable if the rate of interest that they're paying over the time of the short where they're borrowing the beans selling the beans and waiting to buy them back at peg it's just that the interest rate over that period of time has to be less than the spread that they're collecting so it's a really interesting concept where it allows tighter peg maintenance and less growth from inorganic demand uh for beings it's it's pretty unique uh it's an interesting idea yeah agreed i think the whatever um meant that are taken away uh is going to be in an organic demand in in in in effect and then bienstock would have the ability to you know remove all of that in organic demand uh without without having you know to to impact itself pressure basically um let's let's think it over and see you know where where does this take us or how does it develop yeah it's a super super neat idea mod it's like really cool okay i have no more normal questions or ideas um come on you have plenty more ideas man don't understand no i think i think i think this is where we are or at least at least for today awesome awesome what a fun class yeah um i have to say class is my my favorite day of the week lots of fun all right thank you thank you everyone for joining us uh publius as always uh thank you for making the time uh and chatting chatting with us and see you see you all next once maybe a reminder um on this thursday down meeting we're gonna have a live demo for for the new user interface otherwise see you all in the next class