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Sept. 29, 2021

Ep 16 - Count your magic beans Jack - Beanstalk is taking on the giants of stablecoins

Ep 16 - Count your magic beans Jack - Beanstalk is taking on the giants of stablecoins

Guest Info

Name of Guest: Publius
Name of Project: Beanstalk
Project Twitter URL: https://twitter.com/BeanstalkFarms
Project URL: https://bean.money/

Project/Guest Description: Beanstalk is a unique new algorithmic stablecoin based conceptually on ESD, but built from scratch to avoid the problems they had. Mission driven to build the primary stablecoin for DeFi, the team is fighting to deliver a powerful protocol that is permissionless, decentralized, and censorship resistant.

Show Notes

ESD influenced
Wanted to build something
Scalability
2nd biggest opportunity decentralized algo stablecoin
ESD design fixes
Game theoretic design flaws
Became all encompassing
9 months of dev
50 days ago deployed
ESD price too high increase supply
Ground up reimagining

Collateralized Models
USDT and USDC
$100 billion in collateralized
Reliance on centralized party to administer the system

Oracle is eth / usdc and bean/usdc

DAI
Basically add value
Collateral not decentralized
Still an element of centralization with DAI
Mint DAI against the CDP
More assets backing the DAI
Capital inefficient
Locking up Ethereum isn't a great solution
High borrowing costs to use DAI
Cost prohibitive
20% borrowing costs changes math on betting markets

No premine
Works from launch
Initial 100 minted

How beanstalk works
Every hour - season
Price oracle is queried
If price too high increase supply
If price too low, then soil debt
Pods are debt bearing asset of the system
When price is below to encourage debt
Supply of soil

Behavioral econ theory built into it.

Participation

Business Development

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