This Document is authored by @beanstalkfarms DAO.
It is presented here for our consideration and discussion!
Summary
There are 4 different ways for Beanstalk to be integrated into the Cre8r DAO ecosystem:
- Create a fundraiser mechanism for Cre8r DAO to raise initial capital from investors for their treasury in the form of Beans before Brick is launched. Allow for easy distribution of Brick airdrop to fundraiser participants upon BRICK launch.
- CRE8R DAO will launch a new marketing campaign for Beanstalk. Beanstalk Farms is be willing to pay Beans for the campaign, which CRE8R could allocate to any of the other above uses.
- Create a BEAN:CRE8R Uniswap (or Balancer) liquidity pool and incorporate it into the Silo in some capacity.
- Facilitate CRE8R DAO to accumulate protocol-owned liquidity and Beans through Brick Bean bonds.
This proposal outlines 4 different ideas on how the Cre8r and Beanstalk ecosystems can build synergies. The 4 different propositions have different development costs and benefits to each ecosystem, which need to be considered.
Proposition 1: Beanstalk Launchpad for early Brick/CRE8R investments
Beanstalk Farms will develop a launchpad smart contract for Cre8r DAO to raise a certain number of Beans in exchange for CRE8R tokens, Brick tokens, or anything else. The Beans raised could be available immediately, but the reward offered to contributors can be distributed after the fact through an airdrop. This provides Cre8r DAO the most flexibility while raising Beans.
Cre8r DAO is going to soon be launching an Olympus fork called Brick. Cre8r DAO has stated that they already have investors that are looking to seed capital for the Brick protocol, and that they would like to hold Beans in their treasury. Accordingly, Cre8r DAO has expressed interest in using Beans as a fundraising vehicle for their DAO. Thus, by allowing Cre8r DAO to start receive capital in the form of Beans now, they able to start accumulating Beans now.
Benefits
To Cre8R DAO: This will allow CRE8R to (1) start to build an investment portfolio in Beanstalk now through depositing or sowing these Beans and (2) obtain seed funding that will allow Brick to launch with assets already in the Treasury. These Beans could be deposited as CRE8R:Bean liquidity right away or used to provide Brick:Bean liquidity at launch. Given CRE8R’s interest in maintaining a long-term Bean position through Brick, helping to drive demand for Beans would benefit them. In addition, given Beanstalk’s willingness to help out on the development front, it would allow CRE8R to outsource the development required to seed Brick capital.
To Beanstalk: Increased utility and demand for Beans.
Proposal
- Beanstalk Farms will develop a launchpad for Cre8r DAO to allow early investors to exchange Beans for CRE8R tokens or Brick allocations (up to Cre8r) before the Brick protocol is launched, acting as a sort of pre-bond mechanism. The launchpad will facilitate investors to purchase Beans and invest in the launchpad directly from other currencies such as USDC and ETH.
- Beanstalk Farms will help CRE8R DAO find a sufficiently decentralized way to invest the Beans they raise for their treasure in the Silo or the Field (CRE8R’s preference) to allow them to start earning interest on their Beans.
Timeline
- Development: 1-2 Weeks. The sooner the better for the integration. This proposition requires less development work on the Beanstalk front and does not require a BIP from Beanstalk Farms.
Proposition 2: Launch a new Beanstalk Marketing Campaign
Beanstalk Farms has not done much marketing recently. The previous Beanstalk Farms x CRE8R campaign was tremendously successful and Beanstalk Farms is interested in launching a new campaign. Beanstalk now has a sufficiently large budget to pay CRE8R for the marketing. This payment could be used as seed funding for Brick or seed liquidity for the Bean:CRE8R pool.
Proposal
- CRE8R launches a new marketing campaign for Beanstalk.
- Beanstalk Farms pays CRE8R Beans for the campaign.
- CRE8R can choose what they want to do with the funding, but could be good to jumpstart any of the other above propositions.
Timeline
- Hopefully can start ASAP!
Proposition 3: BEAN:CRE8R Liquidity Pool
Create a BEAN:CRE8R liquidity pool on Uniswap or Balancer. CRE8R will supply the initial CRE8R tokens as an airdrop to Silo Members that provide the initial Bean liquidity to the pool. Beanstalk Farms will incentivize liquidity in the BEAN:CRE8R LP tokens by submitting a Beanstalk Improvement Proposal (BIP) to allow Farmers to receive Stalk and Seeds in exchange for depositing BEAN:CRE8R LP into the Silo for a specified number of Seasons, which should provide some sticky bootstrapping liquidity for Cre8r tokens.
Our estimate is that Beanstalk Farmers would provide up to $2-3M Beans if they had the opportunity to match their Silo’d Beans w a Cre8R airdrop. This would effectively create a “bonus” for LP providers to this pool in the form of Cre8r tokens. We will need to implement certain rules to minimize the attraction to add LP and immediately dump the Cre8r tokens that were airdropped, but we think this can be done someone easily.
Benefits
To Cre8R DAO: The Cre8r token has recently launched a CRE8R:ETH trading pair on Uniswap V2 and has attracted ~$1 million in liquidity. This is a great start, but for CRE8R maintain a more stable price while attracting larger pools of capital it needs to attract significantly more liquidity. CRE8R currently doesn’t have any liquidity mining incentives to attract more liquidity. By creating a CRE8R pool, there would be incentivizes distributed through the Beanstalk ecosystem to build liquidity in such a pool. There are over 30 million Beans sitting in the Silo unused. By allowing Farmers to convert these Beans into CRE8R:Bean liquidity, CRE8R may be able to rapidly build a deep liquidity pool.
To Beanstalk: Beans do not currently have much utility outside of the Beanstalk ecosystem. Integrating a CRE8R:Bean pool and offering a CRE8R airdrop will create new utility for Bean holders. This will in-turn increase demand for Beans as the CRE8R ecosystem attracts buyers.
This synergy between Beanstalk and Cre8r DAO will create net positive effects on both ecosystems
Risks
To Cre8R DAO: if Silo Members all dump the airdropped CRE8R tokens on the market, that would hurt the price and liquidity of CRE8R tokens.
To Beanstalk: if CRE8R holders all use the new Bean liquidity as exit liquidity, and immediately dump their Beans on the open market, this would be net negative for Beanstalk.
Proposal
- Beanstalk Farms will propose a BIP to allow BEAN:CRE8R LP tokens to be Deposited into the Silo for Stalk and Seeds for a period of Seasons to bootstrap initial liquidity.
- CRE8R DAO airdrops a portion of CRE8R tokens to Silo Members who contribute Beans to #1.
- Beanstalk allows Farmers with Deposited Beans to convert the Deposited Beans with the CRE8R tokens provided by CRE8R DAO to Deposited BEAN:CRE8R LP tokens and retain Stalk and Seeds for doing so.
Timeline
- Development: 1-2 weeks. The sooner the better for the integration, but a sufficient amount of dev work is required on the Beanstalk side.
- BIP Voting: Up to 1 Week. The Beanstalk community will need to approve the BIP through an on-chain governance vote. This may take up to a week from when the BIP is proposed.
Proposition 4: Create Bean / Brick liquidity Bonds in Brick Protocol
CRE8R has mentioned that they plan on holding a substantial portion of the Brick protocol’s treasury in Beans. Once Brick is launched CRE8R will accept Bean bonds in exchange for the Brick token. Brick would add some of these Beans as Brick:Bean liquidity and be able to deposit the Beans + LP into the Silo and sow the Beans in the Field.
Proposal
- Brick protocol will accept Beans and Bean:Brick LP as bonds.
- Beanstalk Farms will submit a BIP to allow Bean:Brick LP Deposits into the Silo.
Timeline
- CRE8R has said the expected timeline on the Brick launch is 9-12 weeks. Beanstalk will coordinate accordingly on their end.