Recording

Transcript

All righty. How are things going at being H.Q., folks? Good.

Glad to hear it. Sounds better than the alternative. That's good. Yet another day, another beat. We're just we're just grinding on engineering stuff right now. But, hey, so remind me or help me, I guess, clarify internally is the like is root sort of an internal being cooked up, I guess, project? I know I'm assuming there's overlap between the teams perhaps, but like, I guess is it Beanstalk that is directing a lot of the stuff that's happening there or is it entirely separate entity wise, etc. And people hear me?

Yeah, okay, cool. So I had my mic wasn't working earlier, but I think it was the push to talk. So Roots roots independent project. But you know, Pugliese and a handful other folks are definitely involved in like advising the design and whatnot. But you know, there's an independent engineering team and a handful of other folks. Gotcha. Okay, cool.

Makes sense, man. Well, yeah. So nice to meet you. Likewise. Likewise. I know I didn't hear back a fair bit more in, like, the May timeframe before things. Well, first crush to, you know, slash everything, you know, blah, blah, blah, wise. And then and then have popped up every now and then. More recently as is things have spurred back to life.

So yeah, it's exciting to see to being back in action, man. Glad to have you here. But before we get started, I wanted to ask, I know there's some folks who wanted to join this, but I couldn't make it. Is anybody opposed to just having the bot record this? We can. We can share with folks who are interested.

Yeah, no issue over here, tweet or. Oh, okay, great. Then we're good to go. Thanks. Thanks indeed, guys. Well, yeah, we can do this one of two ways. One, and this might just be a little bit helpful for a refresher on my end would be if you guys are down to run through I guess what the current the if you guys can run down a smooth brains explanation to how being curly looks and perhaps a light touch on where on where things look with with I guess repaying people from the past just because as we do think about different assets that we're working with and and safety among other things it's often it's helpful to

know where everything where everything factors in. My understanding is that you guys have separated church and state pretty effectively, it seems, but just, you know, good to to actually double check everything. And then I'm also happy to run through, you know, the way the way the beer chain works and explore different ways we might be able to work together here.

Does that sound sort of productive or sensible like quarter of operations last?

Yeah, that sounds good. Who, uh, Manafort or so said that you guys want to explain the state of being? You guys are more into it than I am, so I'm happy to chat. Unless you want to chat, I think. Just go for it. Yeah. Great. So, State of Beanstalk, you know, we we've launched roughly a month and a half ago, I believe there's, you know, around like $30 million of liquidity in the system and SMOKIER you kind of familiar with the with the barn raised mechanics and like unwrap LP and some of that I'm Nagle I'm in I looked at the I saw the first iterations and I was like okay kind of makes sense.

And then I did not keep, you know, good good pace after that. So I'm not sure whether I know. Like long story short, you know, if you had assets stolen during the exploit, you've been given this like underwrite LP and basically your ability to claim liquid assets from that unripe LP is the multiplier of the amount of the new debt.

So the new recapitalize those that have been paid off. Mm hmm. Times the the the amount of like times the liquidity in the system to some extent. Mm hmm. So, you know, I think right now there's been like 22% of the total amount that was that was stolen liquidity stolen from the system paid off. So there's still a long way for you pre exploit LPs to get made whole.

But then there's a there's a third kind of payment payment entity that's been introduced is the barn. So there's a silo the barn field. The barn is the recap fertilizers, which is fertilizer token and get some interest rate depending on when they participated in each of those three kind of things receives a third of the new B mints until all the fertilizer has been paid off.

And then it kind of goes back to this 5050 structure that existed pre exploit. But if there's any specific questions within any of that or something I didn't cover, like happy to go as granular as you like. No, that makes decent sense. So cool. So yeah that's kind of currently state you know I think like Baratunde we're in heavy load mode right now.

Yeah, it's, there's a lot of new things. We're working on a dex, a fungible deposit being token, which could be interesting as we think about a partnership, you know, prediction and, you know, single chain stuff, distribution strategy stuff. So like, there's a handful of of things we're looking at here, but, you know, all in all, we're still beneath l one We haven't bridged anywhere or done anything else yet, you know, So, so not too dissimilar from pre exploit minus the new, the new tokens the bar and kind of the the the vesting schedule for for exploited holders.

Yeah. Makes good sense to me. And I guess the you know what I'm curious about as well as when you guys look at the Dex side and I presume when you say the dex side, is that referring to root or is there another one that's also sort of No, sorry. So I said it, Dex. It's like this beanstalk native.

Dex. Oh, okay. When I refer to Root roots more but more like a betting exchange for for arbitrary protocol. Typologies. Okay. Makes sense. Makes good sense. I know there's layers to be inverse. I need to become more, more literate. And I need to get. Now it's reality for an hour or something. Yeah. No, you're more your time is more efficient.

Just hitting one of us up, hitting me up and saving, you know, an hour of searching. It's fair enough. I always appreciate the same thing. Yeah, we're working on getting the bear train docks to the point where it's like, you know, like, I want people to be able to read, like, five lines and be like, Okay, I got it.

But we're not quite there yet either. So perhaps if you trade notes on that at some point, you. Yeah, but you guys are making like really impressive progress. So hats off. It seems that it seems that way. You know an it looks like our community is quite proud of you guys so exactly like yeah, of course. I mean, like if it's cool tech, it's cool tech, period.

So we're all in it for the tech. Exactly. So, you know, I'm open to kind of exploring whatever. Like obviously like, you know, I think mutually, you know, we'll probably want to review each other's documentation and, you know, our engineers will want to take a look what and whatnot. But just in the realm of like creativity and exploring what could be like having this conversation, right.

I'm not sure if you're an abstract kind of thought about like, you know, what you wanna talk about. Yeah, no, I think we better ideas around before, right? So what I figured might be most helpful is I can give you guys a little bit of a background on, like, what Baratunde looks like right now. You know, sort of where we stand at the moment to where we're going to be at timeline wise and, you know, sort of the assets that are going to be natively around the chain or sort of integrated into into the chain structure, I suppose.

And from there we can figure out, you know, where there are areas where being might be able to plug in or where stuff from the Baratunde ecosystem might be able to plug into, you know, to be in-world, I suppose. Right. I think can really go both ways and ideally probably does go both ways in some manner. So would that be helpful just to give people a sense of of what there might be to play with that?

That sounds perfect. Let's let's repeat. Cool, cool, cool, cool. So, you know, I'll give you guys the the the elevator pitch and, you know, at its core better chains and EVM compatible L one it's built on top of the Cosmos SDK and the first I kind of like scares people into like, oh, cosmos chain and it's like, yeah, it is the cosmos chain, but that's more from a, I think, capital efficiency structuring of tasks.

You know, almost like I'd say it's more of an infrastructure point of view cosmos chain than a cosmos first chain. I think what you guys can probably tell from our community and sort of the direction that we've taken around how we grow beer chain is that we're sort of very much EVM first when it comes to our growth strategy, but we think that there's a lot of really interesting, you know, it's a technology that is unlocked by plugging into the Cosmos SDK.

Now one of the most important things is that beer chain sort of uses a ripped up version of proof of stake that we call, you know, proof of liquidity consensus. And a proof of liquidity Consensus really means is that we're assigning financial well, we're assigning block rewards or incentives in accordance to, you know, the financial productivity of the different assets that are being used to secure the chain.

So, you know, in contrast to your traditional proof of stake system, where you have a single, you know, gas token that's being staked and, you know, you're being paid out, you know, based on the amount of total tokens you're staking in beer chain, you're able to actually stake a variety of different tokens. These are permissioned. So you can't stake just, you know, any random asset or shit coin that you want.

But there's a group of basically battle tested L1 tokens, super robust stablecoins and a small portion of consensus weights or rewards that are allocated to what we're calling sort of like, you know, up and coming blue chip or green chip governance tokens. So the way that that roughly breaks down is like, you know, 95% of a block rewards and incentives go towards, you know, your L1 tokens like you know, wrapped bitcoin wrapped ether, a VAX bear, etc., atom, so on, so forth.

Stablecoins like the current selection which is looking like usdc uct dai frax USD groups that really have, you know, like in most cases billions of dollars of liquidity and you know, are fairly ubiquitous, are used across a number of different centralized and decentralized exchanges. And then that small group of tokens of governance tokens that is meant to be something that really can align incentives between certain groups that are building on their chain and the chain itself.

And what I should probably explicitly state is that the whole idea of proof of liquidity, consensus is that the assets that are securing bearer chain can basically serve a dual purpose. They can basically on one hand be delegated to two validators. And, you know, they're they're original form, if you will, but also having, you know, used to produce virtualized assets that serve as the basis for people within the ecosystem to actually use in a native spot exchange such.

Mm. A perpetual futures exchange and CDP. So that means that you know, someone can be securing the chain with their ETH or their bitcoin or their usdc C and so on so forth, and earning block rewards in the form of zero for that single sided liquidity provision in which it is paired against the native Stablecoin honey under the hood.

And at the same time those assets can be used pretty productively so that those staked assets are not just sort of, you know, in in limbo, in escrow, kind of useless like they are in the vast majority of cases besides, you know, maybe looping some stake these on other as you kind of see nowadays. Right. So that's the whole idea.

A lot of what we try to do, a bear, Jane, like can we give people, you know, the ability to express their financial opinions in whichever manner they wish to while contributing towards network security? And actually, instead of taking the, you know, the choice that people normally have to make between earning yield by staking or earning yield by helping in a dex, it's like, Hey, why don't we just unite these two things at the at the top level, right?

So that's that's really part of the equation. And then we know when it comes to the different protocols that can become part of consensus, that's where the last level of the equation plays in here. And that's actually the third token. So there's bear out the gas token, there's Honey's a stablecoin that everything's paired against and basically serves as almost a router of sorts.

And then there's finally BGT or Fair Governance token. Now BGT is an illiquid receipt token that's given to people who stake in LOX or honey steak and lox or bera, you know, for a relatively long period of time. We're not looking at some curved here for, you know, four your lox or we're looking at I think what's more acclimated to, you know, defi market cycles, which is like 4 to 16 week lox and basically one is able to accumulate BGT the effectively vests over that time period kind of like maple finance style and it can be used for a couple of different purposes.

One is for determining which, you know, which protocols are actually, you know, voted into that consensus validator sets. So which tokens apart from those are ones. And staples I mentioned can be used to to stake on bear chain and secure the network. And at the same time it also it entitles the users who basically who basically hold BGT and in turn are also staking mbira to claim a percentage of the fees that are generated by the network itself.

Between the swaps, the CDP is the perpetual funding rates, liquidation, so on, so forth flowing back to users in the form of money. So it's really kind of cool. There is like, you know, if you're staking and locking your bearer on one hand, you're earning this somewhat fixed rate in a volatile asset on your bearer yields, you know, from the proof of liquidity consensus and from fear of being burned as the chain operates.

And then finally, you're also getting this kind of interesting variable yield in the form of stablecoins or honey that are collateralized by the fees from these swaps, perhaps, you know, CDP, so on, so forth. So I think that's pretty much gives an overview of the system and how it goes goes full circle here, guys. You know, the, you know, interesting or operational point here that may also be relevant being that you know, there's this worlds in which we could see Bean as one of those assets that that's in the consensus vaults as you know part of that part of that 5% you know up and coming blue chip protocol allocations.

We we've affectionately called it the Gen garden internally. And that's because, you know probably some good the medics there would be in as well but that's where you know daos liquid funds existing protocols that are quite large on other chains like groups like you know of a and compound and light own types would be able to sort of port over to better chain or deploy a large amount of capital on bear chain and then find themselves in a position where they can basically on one hand have an additional source of utility and yield for their token.

You know, of course, liquidity bootstrapped against honey in the native Dex. And I think also just like relatively tight alignment with the chain itself compared to sort of the the normal game of like Mad Libs and hopping from ecosystem to ecosystem looking for grants and or, you know, any pool of liquidity that that is yet to be sucked dry.

So the whole goal of of that you know that that consensus weight allocation towards up and coming protocols is that we thought that it was a sort of a great a great actual use of like what we think the value of proof of liquidity is, you know, let those assets contribute to an ecosystem and let those assets contribute to utility for everyone in, you know, in I guess the chain.

And then also as a better long term means of alignment than just throwing grants that people like. You know, optimism has been an interesting exercise in that recently. So yeah, man, I hope that helps is a little bit of a rundown and hopes that that gives you guys a little bit of a sense of what we're working with to start the one part that I will be, I guess upfront and a little bit hesitant about is that when it's come to the assets that we put in these in the garden to date, you know, a lot of them are still in limbo slash, you know, in in the case they're, they're being finalized.

But we haven't announced any of our recent fundraising as of yet. And I think that that may could that may spur a little bit more competition or interest as well. But in most cases, these groups are basically staking anywhere between like the low to mid eight figures of their native of, you know, a stablecoin of some sort or another already accepted consensus asset, if you will.

So, you know, basically all one tokens and or and or staples along with a bunch of their you know native token or their their staple in the case of bean for example. So that basically that way it's like, hey, on one hand we're incentivizing liquidity for the ecosystem, we're providing, you know, that sort of value. But at the same time, we're, you know, we're putting this pool together so that people from our community are able to, you know, I have another source of yield for the token, which is pretty exciting.

I think that that's perhaps one of the things that we think about most in terms of like, you know, stablecoin adoption and or of token adoption, just because we've seen more than enough. And I think you guys have engineered systems pretty effectively to avoid, you know, like useless governance tokens. I think that the stock model is pretty interesting.

And we think similarly about how a we can, you know, drive as much value for honey as possible. And part of that is, is why it's used as like the, you know, the router effectively within our dex, but also such that we can ensure that the groups that are building on the chain of the greatest set of incentives for, you know, for for their users.

So yeah, I hope that that rundown wasn't too confusing and I hope that gives you guys a sense of what the, the better chain flywheel our ICO looks like. Smoke For those who are confused, where would you direct them? What would the best material to start with? Better chance. Yeah, I will. I'm happy to pass along a set of documents that are a little bit rough around the edges right now because there's still things that are being finalized.

But, you know, should give a sense of of how things work. Would that be helpful if I dropped that in the chat? Yes, please. Awesome. But I might. Let me just is this a public chat or is this one that like, can anyone in buying stocks stocksy it? Yes. The partner chat. Yes, I think it is there. By any chance a slightly more siloed one we can we can.

We could set one up after the call, so. Okay, don't worry. Okay. Perfect. Yeah, maybe I'll I'll pass one in there if that's cool. Guys, just because these are these are like 80% of where we like them to be. But yeah, yeah, yeah. So now, so I was gonna say, first off, thank you. That's a super, super helpful overview and big fan of the model.

I think I think proof of liquidity is definitely a step in like a really positive, interesting direction and you know, being able to, you know, create a full, a full tech stack of, you know, really like indeed financial primitives like CDP and whatnot is is a really interesting way to go. Go. And I'm generally like a really big fan of it.

And also, yeah, and also completely understand, you know, the conservatism in the early whitelisting process. Like that's just good risk management and something you have to do. So, you know, no worries there. You know, I think that as I think about this, the potential possibilities are endless between these two protocols, like, you know, you know, as being stock kind of, you know, also builds out its tech stack and and there's CDP and there's probes and whatnot.

And as Barry Shane does the same, you know, being able to port, you know, be native assets towards parachain and bear to native assets toward towards stock. I mean there's just a lot there that might take some time to fully contemplate. But it seems to me like, you know, there's going to need to be some mutual whitelisting process, which obviously is very healthy and reasonable, that that should probably occur between both teams and like, you know, just a forum for to ask questions and review documentation and and just get comfortable with each other.

Just just so everybody kind of like kind of understands each other's protocol, like very, very in-depth because I think that's important at this stage. And from that point, you know, hopefully there's, you know, that there. And, you know, I'm I, I'm I'm hopeful of this. And I'm sure you are, too. Like that. There's a point in the in the near to mid future where you know, we can we can kind of, you know, announce some type of partnership or something.

We're doing together where there there's, you know, potentially a mutual whitelisting of assets or, you know, one way to start and another way to to to go afterwards following. But like that's kind of how I envision, you know, something like this moving forward and like taking tangible next steps. But curious on your thoughts. No, I'm I'm very much on the same page there.

I think I think that, you know, the the way that I would consider this is it would be great to understand, you know, what is it that you guys need to accomplish most with being in the next little while? And, you know, how do we how do we effectively, you know, help Like, yeah, is there anything that you naturally see as something that Baratunde can help us?

You know, I'm still I'm still fairly new to you know, I think this was the first time I've actually heard Baratunde explain and a lot of it a lot of it just clicked for me. But, you know, so I'm still thinking through things. But, you know, I think from a high level perspective, Smokey, like, I think if there is if there's an overlapping user base, you know, you know, users, you know, are going to want to do interesting things within port growth protocol.

So if there's assets in both protocols, like I'm not quite certain yet, like, you know, from a functionality or a utility perspective, maybe aside from the old, frankly, just being upfront like either protocol might offer to each other. But, you know, as the tech stack is built on both protocols, like, hey, maybe, you know, people want to port beans to Baratunde to go use some CDP or hey, maybe, you know, people want to port honey or whatnot over to help with being in the silo and, you know, create a fungible token denominator on some order book on Arbitron.

I don't know. But I think that that's going to be the fun part of this. Once once we, you know, hopefully get comfortable enough with each other to to start rolling out a whitelisting process. So, you know, like some of the stuff that I've discussed or I think ideas that the around before was I was like and I know some of these are probably more just in others, right?

But if there was a world in which there was a being deployment on Barrow chain in which, you know, the, you know like sewing was done with, with Barrow for example, instead of like eith that could be pretty interesting, right? Or it could even be potentially done with, you know, state like assets that are state to the consensus forms in parallel.

There could possibly be some pretty stuff there. There could be some pretty funky ways of looking at, you know, being slash honey peppers in on main that's and or you know, on that even within the bare verse in terms of like you know, some of the secondary dexs that will be launching within the ecosystem perhaps as you know, both assets are growing in maturity because, you know, while there will be the chain decks and the consensus vaults that, you know, are contributing to the proof of liquidity consensus.

And I think that's sort of where like the the blue chip stuff ends up, if that makes sense. There's also going to be, you know, sort of like your balancer style. Dexs was boosted towards the plug in Stitch Fix. And, you know, I think there's going to be like a solidly style one as well. And there's always a uni forks and there's a sushi fork too, because why not?

Right? So there's also interesting opportunities to see where they plug in there. You know, there's the guys from Finance who are setting up a money money market could do some stuff in there and see if there's a way to, you know, have been supported as on the earlier assets, even if they're they normally air on the side of a FFO conservative ness.

I think there's a lot of different ways we can explore things there. You know, for us, like especially given our our focus around liquidity, I suppose what would make me most excited and what I think would be most interesting would be, you know, a world in which the deepest being X liquidity pools exist on their chain or, you know, are flowing through a bear chain in some manner because it's like the long term vision of the of the system.

It's for us to be able to, you know, basically it's it's for us to be able to have the depth and velocity of capital that you normally only really get in a centralized exchange. But with the composability and customizable nature of an on chain ecosystem, and I definitely don't think that you see stuff as interesting as being in a sex, and I'd much rather see stuff like being on Barra as well because like part of what we're also shooting towards and I think perhaps is you know the community got a vibe for was that like in the way that the most interesting projects are launching on Arbitron right now perhaps due to the amount of

liquidity or the proximity to to, you know, to interesting things happening there and how active that ecosystem is, We want that to be better and more at launch. And we think that, you know, given the fact that there's like what, 25 ish native protocols and some 60 others that are, you know, on the road when it comes to to our launch and we don't even have the Testnet live.

I think that we have a pretty good chance of doing that. So we'd love to be able to have as many folks that are a friends of ours and close to the community as many are within the Bienstock ecosystem and people who are doing interesting things, you know, benefiting from that. What we hope to be a Cambrian explosion in the very, you know, pretty early.

So I'm not sure how how risk on or how risk averse you guys might be about you know looking at interesting stuff like that in new chains especially ours because you know first and foremost but I think that could be something that would be really interesting to explore as well. Like, is there a world where is there a world where be not, you know, curve dependent, if you will?

Yeah, absolutely. I mean, you know, one of the things you know, we're working on right now is the decks which would which would, you know, basically make us independent from curve as is the thought here. But at the same way, you know there's certainly interesting things that could potentially be done on other chains like Mary Chain when it comes to liquidity being liquidity as well.

So you know, I think like like I like I said earlier, like I really think there's like endless, endless ideas we can riff on right now just because the, the possibilities are that interesting, which is probably a pretty good sign. And, and Yemen, I guess for like next steps. Like I like to kind of like, you know, put action that things that it's possible I think right now for next steps you know I'd love to get a chat going mutually with you know some of the key people on it on both teams that, you know, should be involved in the conversation and, you know, start to, you know, maybe take a look at each other's

documentation, have a chance to ask questions and whatnot, and then, you know, hopefully get to get to a point where in the near future, you know, both communities can get comfortable enough, you know, you know, bridging assets and having, you know, being soccer, burger chain, native assets, you know, sitting with the other protocol. And, you know, I think we're going to have to work through some of the typical, you know, risks.

You know, bridge risk is a big thing that, you know, is going to come up, I think, for you guys, you know, think, you know, Beanstalk being a younger algo stable protocol could be could be viewed as a risk for us. You know, we probably want to get smarter on the validator side and kind of the centralization aspect of Baratunde.

Like, there's just a lot of things we yeah, there's lots of stuff that we can dive into and I'm totally good with that. We can probably find a time to do that, perhaps a little bit more of a concentric group just so that we don't end up in a situation where there's too many cooks. Because I know that it's super easy to have that.

I think that, you know, happy to say that we've been able to assuage most concerns in the past that people have had on the bridging side. Also, just because, A, we're working with with pretty much every effective cross-chain messaging protocol and term and, you know, our bridge is actually likely the, the end game of our bridge is something that actually uses a combination of verification of cross chain messages like it basically does like a mini tendermint consensus where like it's verifying messages from layer zero axilla and and synapse to ensure that something is, you know, valid.

So what's kind of cool there is like theoretically for for something to go wrong under chain from bridging point of view you'd have to have like two or three of these protocols fail at once. So, you know, we're hoping that doesn't happen. If so, we're all kind of flux. But like, you know, that's the goal is to make things as airtight as possible.

And at the same, yeah, as you noted, there's areas where we will be a little bit more conservative, but, you know, we're pretty open minded. So I think that's it would be great. I can set something up in the partnership server or something for a for for our team or our teams to connect in the end and find some time, perhaps within the next week or so.

This week is probably going to be like a little bit nutty to dive into stuff just deep because we're also in the middle of a whole bunch of hiring in a little bit of like fundraising type stuff. So, you know, I think to to do it justice would be great to do next week. Do you think that's that's possible?

Yeah, totally. Next week's fine. You know, I think I think both teams are probably in the middle of a lot right now. So next week's fine. I mean, I just sent you a dime, so. So maybe we can just kind of coordinate there. But aside from that, hey, it's awesome to be able to to talk to you in person.

I, I love what I love what you're working on. And I'm super excited that I just feel like there's a lot here and and we'll probably we'll get to the bottom of it Awesome appreciate that time and and likewise a big fan of what you guys are doing. I think that I'd like to fight it every now and then as and I've busted Jack's balls enough times but I think that there's a lot of like a lot of the theory is really solid.

So I think we'll be fine. Fight it. Fight is okay in my books. And so no worries at all to actually polish FUD. So. Yeah, exactly. Cause that's. Jack, thanks for thanks for coordinating and making this happen. Yeah, thanks for jumping on. I figured Mr. Manifold and Smokey are the. Yeah, definitely the guys that should be talking to each other.

So glad to hear this happening. Yeah, we'll try to make something happen and we'll just figure out what you know, what permutations make sense, what everyone's comfortable with, and what we can do to to have you guys doing some cool stuff with us or around launch, I think. Awesome. Yeah. And let me know if there's anything else I can I can try to think up.

Cool. Yeah. And I think that would be cool to plug in. I'm going to butcher his or her name, but suffice near fist. So maybe. Yeah. Yeah. Savvy Surfy. There we go. That sounds about right. She had some interesting ideas around ways that that things could work here. You know, I think some of the implementations were just a little bit off, but they were close enough to there's probably a way to to do something similar.

So yeah, wonderful. Yeah, we'll get her involved, but this sounds great. So, you know, we got a crowd here. I hope everyone's well and, you know, see everyone in class and Smokey, let's, let's, let's chat. I just sent you a demo so we can take it from there. Sounds good. All righty. I see you guys are talking. Does.