BSP-6: Seed an alUSD:BEAN Pool

Proposal: Seed an alUSD:BEAN Pool with funds from Bean Sprout.

Proposed by: mistermanifold

Summary: Seed an alUSD:BEAN pool with 250,000 Beans from the Q1 2022 Bean Sprout budget. Alchemix has put up a governance vote to seed this pool with $250,000 in alUSD. Bean Sprout and Alchemix will conduct a 1:1 alUSD:BEAN swap, and seed a pool on Curve.

Reasoning: Alchemix’s alUSD has gained just under $200M in marketcap. By creating an alUSD:Bean LP, with the future hope to whitelist the pair into the Silo, alUSD holders will have their highest yield opportunity to date, and further stimulate Bean demand. Current alUSD yield opportunities consist of:

• alUSD-3CRV pool which yields 8-9% on Convex with ~180m TVL
• d3 pool (alUSD, FEI, FRAX) which yields 10-12% on Convex with ~125m TVL
• alUSD Tokemak reactor yields 8% but only a few million in TVL

If the alUSD:BEAN is whitelisted into the Silo on a future date, we believe the pool will attract a significant portion of alUSD liquidity. The relationship is symbiotic for both alUSD and Bean.

Bean Sprout will retain half of the LP after pool launch and the Beanstalk DAO will decide how to best manage or distribute the LP on a future date. Bean Sprout’s LP will not be deposited in the Silo.

The Alchemix DAO will have DAO discussions once the pool has reached >$10M TVL as to redeploy the their $250K alUSD seed elsewhere or retain the seed capital in the pool. Bean Sprout will coordinate with Alechemix during this time, and withdraw it’s 250K Bean seed if Alchemix decides to withdraw their seed alUSD. If Alchemix decides to retain the seed capital in the pool, Bean Sprout will keep the 250K Bean seed in the pool indefinitely.

Proposed Budget: 250,000 Beans from the Q1 2022 Bean Sprout budget. The pool will be seeded following approval of BSP-6.

Note on BSP Numbering: There was an error on the last BSP and we have now reconciled it internally. BSPs will continue from BSP-6 onward in the normal manner.