BIP-50: Reseed Beanstalk

Note that due to the Snapshot character limit, the Snapshot version of BIP-50 that follows is significantly abridged and includes many references to the complete BIP-50 proposal on Arweave that should be read here:

https://arweave.net/1QIJ2oHnaTcb3jqY3T7bC92KAS--CVLJmZlL5j_gI6s

Proposer

Beanstalk Farms, Ben Weintraub, Brendan Sanderson

Proposer Wallet: 0xf9d183af486a973b7921ceb5fdc9908d12aab440

Summary

1. Upgrade Beanstalk to include the following major features:
   • Secure Beanstalk, which implements function modifiers that maintain protocol wide invariants and adds them to most write functions in Beanstalk;
   • Generalized Convert, which introduces a new Convert function that uses Pipeline to Convert a set of arbitrary (non-Unripe) Deposits to 1 Deposit (including LP → LP Converts);
   • Generalized Flood, which implements Flood in a generalized fashion such that Flood can occur in multiple Wells at once;
   • Shipments, which introduces a generalized system for allocating new Bean mints to various components of Beanstalk; and
   • Tractor, which is a peer-to-peer transaction marketplace that allows third party operators to perform Beanstalk actions on behalf of a Farmer;
2. Upgrade Beanstalk to include the following various quality of life improvements:
   • Upgrade the Solidity version from v0.7.6 to v0.8.20;
   • Implement a generalized whitelist system that supports custom oracles, Gauge Point functions and Liquidity Weight functions that do not require a diamond cut to change for a given whitelisted asset;
     • Implement a generalized Chainlink oracle system such that a Well that has a non-Bean asset whose USD price can be queried via Chainlink can be whitelisted without a diamond cut;
     • Implement a generalized Uniswap V3 oracle system such that a Well that has a non-Bean asset whose price can be queried via Uniswap V3 can be whitelisted without a diamond cut, provided that the other token in the oracle pool has a Chainlink feed (e.g., WBTC/USDC on Uniswap V3 * USDC/USD Chainlink feed);
   • Change the control variable in the Morning Auction from 2 to 0.1 to slow down the increase in the Temperature;
   • Update the default Gauge Point function (used by all whitelisted LP tokens) to adjust the Gauge Points more aggressively the farther away the current % BDV distribution is away from optimal;
   • Update the Bean to Max LP Ratio to its minimum value upon Rain;
   • Add several view functions for getting Farmer's balances;
   • Redesign App Storage to improve developer experience and future proof new additions to contract storage;
   • Move several constants that have the potential to change into contract state;
   • Redesign reentrancy protection to support Pipeline and Depot;
   • Increase Stalk decimal precision by 1e6 to prevent micro Stalk from being lost;
   • Add a TokenTransferred event with data on sender and receiver addresses of Farm balance transfers;
3. Migrate Beanstalk from Ethereum mainnet to Arbitrum:
   • Pause Beanstalk on L1 mainnet;
   • Remove all L1 facets except for the DiamondCutFacet, DiamondLoupeFacet, OwnershipFacet and PauseFacet;
   • Upgrade L1 Beanstalk with a new TokenFacet and L2MigrationFacet that allows Circulating Beans to be migrated to L2;
   • Run initialization scripts that transfer whitelisted LP tokens from Beanstalk to the L1 BCM to be unwrapped and bridged to L2 BCM (BEAN:3CRV is migrated to BEAN:USDC on Arbitrum);
   • Deploy L2 Beanstalk;
   • Update L2 Beanstalk with the L1 state;
   • Deploy, add liquidity to and whitelist the following Wells (see Proposed Solution for details):
     • BEAN:USDC;
     • BEAN:USDT;
     • BEAN:WBTC;
     • BEAN:wstETH;
     • BEAN:WETH; and
     • BEAN:weETH;
   • Add all facets that include the upgrades described above (excluding FundraiserFacet, LegacyClaimWithdrawalFacet, CurveFacet and MigrationFacet) to L2 Beanstalk; and
   • Unpause L2 Beanstalk.
4. Update various processes and documentation such as Hypernative, Immunefi and the Disclosures to reflect the new state of Beanstalk.

Links

• BIP-50 GitHub PR
• GitHub Commit Hash: faa0ec60a455b0afdd20ad86f28f41cbc52c2e2d
• Safe Transaction

Problem

See the full Arweave upload of BIP-50 to read the Problem section.

Proposed Solution

See the full Arweave upload of BIP-50 to read the Proposed Solution section.

Technical Rationale

See the full Arweave upload of BIP-50 to read the Technical Rationale section.

Economic Rationale

See the full Arweave upload of BIP-50 to read the Economic Rationale section.

Contract Changes

See the full Arweave upload of BIP-50 to read the Contract Changes section.

Beans Minted

See the full Arweave upload of BIP-50 to read the Beans Minted section.

Audit

See the full Arweave upload of BIP-50 to read the Audit section.

Effective

After either:

• A two-thirds supermajority is reached; or
• The Voting Period ends and either (1) 50% of Stalk is voting For or (2) one-third of Stalk, plus the amount of Stalk voting Against, is voting For,

The L1 BCM will:

• Execute a diamond cut that removes the SiloFacet and wait for 2 Seasons to pass in order for all Deposits to Germinate (only if there are Germinating Deposits at the time of BIP passage);
• Execute the BIP-50 diamond cut, which:
  • Calls the ReseedL2Migration initialization contract, which:
    • Pauses L1 Beanstalk; and
    • Transfers all BEANETH, BEANwstETH and BEAN3CRV in L1 Beanstalk to the L1 BCM;
  • Removes all facets except for DiamondCutFacet, DiamondLoupeFacet, OwnershipFacet and PauseFacet; and
  • Adds the L1TokenFacet and L2MigrationFacet;
• Remove corresponding liquidity from the BEAN:WETH, BEAN:wstETH and BEAN:3CRV pools;
• Swap all 3CRV for USDC; and
• Send all WETH, wstETH and USDC to Arbitrum using the Arbitrum-native bridge.

In addition, a deployer will:

• Fetch the state of L1 Beanstalk at the end of the block in which the BIP-50 diamond cut is executed;
• Deploy the L2 Beanstalk diamond on Arbitrum (in a Paused state);
• Execute the series of scripts to:
  • Initialize the state of L2 Beanstalk;
  • Deploy all whitelisted Wells;
  • Mint Beans to be added as liquidity to the L2 BCM;
  • Mint remaining Beans (for Bean Deposits, Ripe Beans, Farm Balances and Beans in Pod Orders) to L2 Beanstalk; and
  • Mint Unripe Beans and Unripe LP to L2 Beanstalk; and
• Transfer ownership of L2 Beanstalk to the L2 BCM.

After which the L2 BCM will:

• Execute a series of scripts that verify the state of L2 Beanstalk;
• Claim ownership of L2 Beanstalk;
• Add liquidity to the BEAN:WETH, BEAN:wstETH and BEAN:USDC Wells;
• Transfer the corresponding BEANWETH, BEANwstETH and BEANUSDC Well LP tokens to L2 Beanstalk;
• Add all the facets mentioned in the Contract Changes section; and
• Unpause L2 Beanstalk.