Beanstalk is a decentralized credit-based algorithmic stablecoin protocol that is built on Ethereum. Beanstalk relies on 3 interconnected parts:

• Decentralized price oracle
• Decentralized governance mechanism: the Silo
• Decentralized credit facility: the Field.

Beanstalk uses 2 Uniswap liquidity pools – USDC: ETH and USDBean Logo: ETH – to create a decentralized price oracle. When the ratios of the two pools are identical, the price of Bean Logo1 is considered equal to $1. By trading against ETH instead of USDC directly, Beanstalk minimizes exposure to the centralized operators of USDC

Beanstalk uses the Silo, the Beanstalk Decentralized Autonomous Organization, to create a robust decentralized governance mechanism. Any Bean owner can earn yield from passive participation in Beanstalk governance by Depositing their assets in the Silo to receive Seeds and Stalk. Stalk owners can submit and vote on Beanstalk Improvement Proposals and collect a portion of Bean supply increases as interest.

Beanstalk relies on a decentralized community of lenders to maintain Bean price stability. The faster Beanstalk can attract creditors, the more stable the Bean price. Bean lending takes place in the Field. Soil is the pre-approved number of Beans that can be lent to Beanstalk. Anytime Beanstalk is willing to issue debt, there is Soil in the Field. Any Beans not in the Silo can be lent to Beanstalk in exchange for Pods.

Beanstalk issues 3 ERC-20 Standard tokens: (1) Beans, the Beanstalk stablecoin, (2) Stalk, a yield generating governance token, and (3) Seeds, which yield 1 Stalk every Season. Seasons are the Beanstalk-native timekeeping mechanism. Each Season is ∼1 hour long.