Beanstalk: A Decentralized Credit Based Stablecoin Protocol

by nsomanion 12/20/21, 1:16 AMwith 16 comments
by gstengeron 12/20/21, 10:57 PM

Wow, this makes so much sense. Beanstalk really could become the de facto algorithmic stablecoin.

by wallacolooon 12/20/21, 4:06 AM

so when the price of beans is low -- i.e. when there's more bean supply than there is demand -- the protocol tries to spur demand by increasing bean-denominated yield for beans ("weather"). the downstream effect of this is to further increase supply. and so the supply/demand imbalance that led to lower-than-$1 value persists (or will occur later, as the supply grows over time).

there's a million different ways to look at a system like this, and tbh i'm sort of drowning in the metaphors ("pods", "stalk", "weather", etc). is there a more convincing argument for how the protocol deals with the bean value < $1USD scenario?

by bonelessfrogon 12/20/21, 3:42 AM

Why are you using Uniswap as a price oracle? Isn't that ill advised especially with a TWAP methodology, an exchange with a low volume can easily be manipulated by someone with not-even-that-deep of pockets.

by vinceharrison 12/20/21, 7:40 AM

I think Bean’s ambition to be a 0 or extremely low interest lender is what got me really interested. They’re going to get there through a decentralized liquidity pool then attract creditors.

by yuppie_scumon 12/20/21, 3:15 AM

Probably going to cause some confusion with AWS Elastic Beanstalk,

by saltdooon 12/20/21, 3:09 PM

I tried search the symbol (Bean Logo1) and it didn't give me the correct results on google. This seems problematic for a stablecoin.

by wumion999on 12/31/21, 12:13 AM

This is really interesting