Beanstalk Farms · March 24th, 2022
Today, Beanstalk Farms deployed a new BEAN:LUSD Curve stableswap liquidity pool. Beanstalk Farms intends to propose a Beanstalk Improvement Proposal within the next week to whitelist BEAN:LUSD LP tokens for Deposit into the Silo, which will provide a novel and competitive yield opportunity for LUSD holders in advance of the upcoming stability reward halving.
The Silo is the Beanstalk DAO. It offers both passive yield to Depositors and the right to participate in the governance of Beanstalk. Anyone can become a Silo Member by Depositing whitelisted tokens to earn Stalk. Stalk owners are rewarded with half of new Bean mints when the Bean supply increases.
The current whitelisted tokens in the Silo are Beans, BEAN:ETH and BEAN:3CRV LP tokens. If the BIP is committed, the Silo will accept BEAN:LUSD LP tokens for Deposit, providing a new yield opportunity for both LUSD and Bean holders, and deepening and diversifying Bean liquidity.
Over $300M in LUSD is currently deposited in the Liquity Stability Pool, earning ~6.6% APY from LQTY early adopter rewards. These LQTY rewards will halve on April 5th based on LQTY’s yearly halving schedule.
The Liquity Stability Pool holds more LUSD than necessary to cover liquidations. Upon adding BEAN:LUSD LP tokens to the Silo whitelist, LUSD holders may instead add BEAN:LUSD liquidity to the Silo, which is currently generating an APY of over 30%.
Adding the BEAN:LUSD pool to the Silo whitelist would provide LUSD holders with the highest-yielding opportunity available to their tokens.
Adding new pools to the Silo whitelist bolsters Bean price stability, increases utility, and deepens Bean liquidity.
The inclusion of new liquidity pools in the Silo is expected to drive increased demand to Beanstalk, further positioning Beans as the most attractive stablecoin in DeFi. Furthermore, adding new assets to the Silo also allows Silo Members to diversify their Silo holdings by providing Bean liquidity against various tokens like LUSD, aligning the success of protocols that issue whitelisted tokens and Beanstalk.
Beanstalk is a decentralized credit based stablecoin protocol. Liquity is a decentralized borrowing protocol that issues interest-free loans using Ether as collateral.
Both protocols are designed to be accessible, decentralized and composable.
Beanstalk is a decentralized protocol that allows anyone to realize the value of $BEAN, a decentralized credit based stablecoin. By eliminating collateral requirements, Beanstalk is the catalyst for a trustless solution that unlocks the potential of decentralized finance for everyone. Learn more at bean.money.