• Recordings
• Notes
• What has been happening with the protocol in the last week?
• Are Stalk holders an important part of peg stability?
• Is a Dutch auction a good solution for Beanstalk?
• Publius’s thoughts on the current status of BIPs
• How does the A permeameter affect delta B?
• How will the delta B calculated in the BEAN:ETH pool?
• What is the Beanstalk DEX? Any updates?
• Any Root updates?
• How is the Halborn agreement going?
• What is convert?
• Why award Unripe assets with grown stalk?
• What is the relationship between FERT and BEAN:3CRV pool?
• What are Beanstalk Farms’ priories?
• Will Beanstalk become cross-network?
• Discussion on prediction markets built onto of Beanstalk?
• Why are Unripe assets allowed to be converted?
• Why is there a big jump in the amount of Pods?
• Can pods be traded for stalk as a way to reduce Beanstalk's debt?
• Why does it seem like most of the business development team is outsourced?
• What effect does the Ethereum upgrade have on Beanstalk?
• Does Beanstalk have any plans to get more liquidity?
• How does the deltaB work?
• Would it be beneficial to reduce debt through something like a buyback?
• Transcript

Recordings

Notes

What has been happening with the protocol in the last week?

• BIPs 22 & 23 appear to have hit quorum.
• The joke going around Discord is that the stablecoin is too stable.
• There is some friction around maintaining a perfect peg due to the fee in the 3CRV pool.
• The deltaB has still been very close to a dollar, basically every season. It's been a very low volatility few days.
• One exciting event was that there was a large withdrawal of about 2.5 million BDV, most of it in liquidity, from a single wallet. That was money that had come in after the replant.
• The price went down to around 92 and half cents because about 1.3 million beans were sold, causing the deltaB to go to negative 1.2 million beans.
• It was quickly converted and brought back to peg within 15 minutes, which was exciting to see.
• The system did mint around 200k soil, and it was quickly sown. But since the price had already returned to a dollar at that point, the system probably didn't need to issue that much soil. That highlights a potential efficiency improvement.
• Since then the price has stayed close to peg, and the reality is there aren't too many other assets to be sold, given that most of the assets are still unripened.

Are Stalk holders an important part of peg stability?

• Normally you think of the pod holders or lenders as the ones creating the utility, because that's where a lot of the stability comes from. But now with convert having such a meaningful part in peg maintenance, stockholders are also starting to create their own utility.

Is a Dutch auction a good solution for Beanstalk?

• At the margin, it can help minimize the amount of debt Beanstalk takes on.
• It seems that temperature is too high currently, and needs to come down.
• A dutch auction could help, but wouldn't be gas efficient.
• Not a priority, but something to think about.

Publius’s thoughts on the current status of BIPs

• It's important for systems creating money to be resistant to change.
• The 50% requirement is a way to ensure that a majority of the value is aligned with changes.
• The goal is to make changes difficult to make. There needs to be compelling reasons.
• We're hesitant to encourage delegation due to the centralizing effect, but we can't prevent somebody from doing it.
• Participation hasn't been a major problem, as most BIPs have passed.
• Maybe certain changes could require lower thresholds. Whitelisting assets might be one such case.

How does the A permeameter affect delta B?

• A high A parameter means the price is calculated closer to constant sum, which means the price will stay closer to the peg.
• With a lower A parameter, for the same imbalance, there will be more deviation from peg.
• There was a lot of discussion, and an A parameter of 1 was selected which is slightly more concentrated around the peg than is a constant product pool, but not by much.
• In practice, that means there is a decent amount of BEAN price volatility for a given ratio or imbalance in the pool, and the fact that the BEAN price has been so close to the peg despite having a relatively low A parameter is very encouraging from a peg maintenance perspective.
• A higher A parameter would have resulted in less deviation from the peg after the large withdrawal, and it might not have been as attractive to convert.
• Having a low A parameter and more volatility can help offset the friction from the fee, which helps Beanstalk oscillate the BEAN price above and below the peg.

How will the delta B calculated in the BEAN:ETH pool?

• It will be a similar calculation as prior to the exploit. It will look at the ratio of BEAN to ETH relative to the ratio of USDC to ETH in another pool.

What is the Beanstalk DEX? Any updates?

• It will be a liquidity vacuum, because there is so much friction around fees that doesn't need to exist.
• Development is underway on a constant product pool, which will be BEAN:ETH.
• Thinking of calling them wells instead of pools, continuing to play on the metaphor.

Any Root updates?

• Will be proposing a BIP on fungible Bean deposits. It will likely be BIP-24.
• BIP-24 will be audited prior to proposal, thanks to the Root funded retainer.

How is the Halborn agreement going?

• Two different aspects of the agreement
• Retainer
• Seraph agreement
• Making good progress, still some things that need to be worked out on the Seraph side of things.
• Hope is to have the UI audited and start a full reaudit of the protocol.
• Pod marketplace upgrade will be ready for them to start auditing in the next couple weeks.

What is convert?

• Changes the ratio of your position of Beans and LP tokens within the Silo.
• When the price is too high, you can convert your Beans into LP tokens, which has the same effect as selling BEAN because it has the effect of lowering the deltaB.
• When the price is below $1, BEAN is removed from the pool and the deltaB increases.

Why award Unripe assets with grown stalk?

• They should continue to function as normal deposits, with the exception of not allowing them to be used as exit liquidity.
• No reason to additionally penalize them for having assets in the Silo when it was exploited.

What is the relationship between FERT and BEAN:3CRV pool?

• The amount of Fertilizer that can be sold changes.
• The system is looking to recapitalize to an amount of LP tokens in the 3CRV pool.

What are Beanstalk Farms’ priories?

• UI is improving, and will be audited and open-sourced.
• Starting work on the DEX
• Integrating Seraph
• Coordinating with various participants like Root and Bean Sprout
• Bean Sprout will work on business development

Will Beanstalk become cross-network?

• Development will continue to happen on Ethereum mainnet.
• Some assets may be bridged to layer 2s, but the focus is on the main protocol.

Discussion on prediction markets built onto of Beanstalk?

• Experimentation should be encouraged.
• The ability to use existing Silo positions is attractive.
• Prediction markets typically have liquidity issues due to the opportunity cost of supplying liquidity, but since the Silo deposits continue to earn seignorage there is no opportunity cost.

Why are Unripe assets allowed to be converted?

• The underlying assets will remain in the system, and the interests of Silo members with unripe assets align with the need for peg maintenance.

Why is there a big jump in the amount of Pods?

• The removal of liquidity caused the deltaB to be -200k, and a lot of soil was issued.
• Highlights a potential efficiency improvement in soil issuance, since the peg had already been restored.

Can pods be traded for stalk as a way to reduce Beanstalk's debt?

• Not currently, because stalk is always associated with a BDV deposit.

Why does it seem like most of the business development team is outsourced?

• There are many independent entities working to build on Beanstalk whose interests are aligned with Beanstalk's success.
• We want to work with many businesses and teams

What effect does the Ethereum upgrade have on Beanstalk?

• Not too much, especially with no BEAN:ETH pool.
• If there is a fork, Beanstalk will continue on whatever chain 3CRV has value on.
• Somewhat unfortunate to be at the mercy of the decisions of centralized entities, but hopefully as Beanstalk scales stalkholders will have more of a say

Does Beanstalk have any plans to get more liquidity?

• Continue to create utility by staying at peg, and inviting businesses to come take advantage of the positive carry of BEANs.

How does the deltaB work?

• The deltaB is time-weighted over the course of the season.

Would it be beneficial to reduce debt through something like a buyback?

• If Beanstalk has to borrow Beans as a result of paying off pods, the total debt level could increase.
• There is no reason to do so because the pod debt has no maturity date.
• Might be interesting to have a buyback price relative to the current temperature. Needs more discussion.