Beanstalk Farms

Proposer

Beanstalk Farms

Summary

There has been much discussion in the Beanstalk community about the incentives for converting Unripe assets.

Currently Beanstalk rewards 2 and 4 Seeds per BDV for urBEAN (Unripe Bean) Deposits and urBEAN3CRV (Unripe BEAN:3CRV LP) Deposits, respectively. There is a significant amount of Deposited urBEAN3CRV that could be converted to repeg the Bean price.

The concept of Unripe Seeds Parity is to set the Seeds per BDV for both Unripe assets to the same amount, which would reduce friction in converting urBEAN3CRV to urBEAN.

Process Note

This temperature check proposal is intended for the DAO to express a preference in advance of the Silo V3 BIP. Ultimately, as the future proposer of the BIP, Beanstalk Farms reserves the right to set the Unripe Seed rewards in the BIP to any values.

Given that this proposal is simply for Beanstalk Farms to gather information, there is no quorum. Stalkholders are still strongly encouraged to participate in order for the outcome of the vote to be as representative as possible. The vote will last 7 days.

In the event that Stalkholders indicate interest in moving forward with Unripe Seeds Parity, the intention is to propose a follow up Temp Check with a multiple choice vote for what the Seeds per BDV values for Unripe assets should be set to.

Voting Choices

Unripe Seeds Parity is setting the Seeds per BDV rewards for urBEAN and urBEAN3CRV to be equal (currently their Seeds per BDV rewards and 2 and 4, respectively).

1. For (Unripe Seed Parity)
2. Against (Unripe Seed Parity)

Considerations

See the discussion channel in the Beanstalk Discord for more information.

Some considerations in favor of Unripe Seeds Parity:

• Most of the friction for conversions from urBEAN3CRV to urBEAN below peg are removed;
• There is less need (or no need) to use Seed rewards to incentive new urBEAN3CRV Deposits like there is with new BEAN3CRV Deposits;
• etc.

Some considerations against Unripe Seeds Parity:

• Given that most liquidity still underlies urBEAN3CRV, during the next growth cycle there is likely to be more upside volatility than normal given the reduced incentive to convert back from urBEAN to urBEAN3CRV (i.e., there’s no extra Seeds to be gained by doing so);
• The goal is for Beanstalk to be an autonomous system and manually changing the Seed rewards via BIP is akin to directly setting monetary policy, which should be avoided (until a Gauge System can change Seed rewards in an autonomous fashion);
• etc.