Guide to Earning Yield on Beanstalk 🚜 🌱
A Farmers Handbook
Welcome bean farmer! 🚜
Beanstalk 🌱 is a credit-based stablecoin pegged to $1.
Beanstalk exists to disrupt DeFi and the rent-seeking collateralized stablecoins market by creating a decentralized protocol that can trustlessly issue billions of dollars of stablecoins. This is only possible using a non-collateralized model and a decentralized credit facility.
This guide will show you exactly how to buy Beans and stake them in the Beanstalk Protocol to start automatically earning yield.
Earning Yield on Beanstalk
To get started buying & staking $BEAN navigate to https://app.bean.money/silo, and connect your wallet.
The Silo is where you deposit your Beans or LP tokens in order to generate yield in the form of more Beans, Stalk, and Seeds. The more Beans and LP tokens that are staked in the Silo, the more tightly Beanstalk holds it’s $1.00 peg and the less incentivized people are to leave because they begin compounding their Beans, Stalk, and Seeds.
Within the Silo you can either deposit just Beans (first row), Uniswap BEAN:ETH LP Tokens (second row), or BEAN:3CRV LP tokens (third row). Each one has a different return profile and variable yields.
Under rewards, you can see that each kind of deposit gets 1 stalk per bean and either 2 or 4 seeds per bean. Seeds determine how much Stalk you’ll grow each season. You are rewarded with more Seeds by depositing LP tokens than simply silo’ing Beans. Silo’ing just Bean is less risky because you don’t get the price exposure to an additional asset that comes with LP’ing.
Stalk is the governance token and represents your ownership in the protocol. Each Season (1 hour) you’ll recieve a portion of Bean mints that corresponds to how much stalk you own. So if you own 1% of the stalk, you’ll get 1% of the mints that go to the Silo. Stalk is not yet liquid but it will be over time (see the 6 month road map).
That’s it! Now just sit back and enjoy life on the farm 🌱 🌾
This guide is meant to be a quick overview but you can find a lot more information below or in the discord:
Beanstalk How To Guide: https://bean.money/docs/How-To.html
Beanstalk Whitepaper: https://bean.money/docs/beanstalk.pdf
Beanstalk Discord: http://discord.gg/y4cJNv5DTM