What does the future hold for Beanstalk Farms and stablecoins? On this Podcast, we chat with bean founder Publius and discuss the pros, cons, and future of algo stables.

Show Notes:
- Publius' beginnings at Galaxy digital and serendipitous introduction to crypto

- Introduction and background on @papapelli

- Publius' introduction to algo stables via basis cash — which felt like a scheme for early investors to cash out via later investors due to its seignorage model

- Deep dive into seignorage models for different fiat and digital currencies (including a comparison to LUNA)- How seignorage determines who profits from the growth of stablecoins

- Why we need algo stables? High borrow / carry costs of stables made use in many applications impractical (lending rates of 10-15% create opportunity cost), which in turn holds back the potential of DeFi

- The potential upside of algo stables, if they can achieve a sustainable model

- How algo stables can achieve sustainability via genuine demand vs. the risks of synthetic demand via subsidized yield (e.g. $LUNA/Terra Collapse)

- Challenges of convertibility, burn/mint, and reflexivity in times of financial crisis

- The sustainability of demand for beans outside of yield farming

- Publius' take on Beanstalk Farms as an economic system that individuals can opt into (similar to how individuals may opt-in to holding $BTC

- How bean seignorage allows holders to benefit from the future growth of the beanstalk economy, making bean the first positive carry stablecoin

- The tradeoffs between collateralized stables with high carry costs vs. more volatile stables w/o carry cost

- @papapelli's take on the trade off between maintaining peg v. generating yield

- How the fed pegs USD to .98c next year (given a 2% inflation target) and its unfair distribution of capital

- Lessons from letting beanstalks peg mechanism ride through volatility cycles

- Lessons from Luna/Terra's collapse — how internal leverage within the LUNA ecosystem led to its downfall and how stalk creates a different mechanism within bean

- How to create non-reflexivity for stalk, beanstalks governance token

- How silo whitelists can be used to control internal leverage within the beanstalk ecosystem

- The exciting potential for positive carry, low volatility digital assets

- How, with widespread adoption, the silo could become the future hub of DeFi

- The risk to algo stables of growing too fast without organic demand (and how anchor exasperated inorganic demand for $UST)

- Discussion of Silo APRs and seignorage sustainability including a comparison to how  Bitcoin ($BTC) miners are compensated for participation in the $BTC network via new BTC mints

- Sam Bankman-Fried's DeFi blackbox analogy, how bean silo yields look similar, and how silo yields differ from AMM inflationary rewards

- Where silo rewards come from (future demand for $beans) and how rewards will change / experience volatility over time

- How bean could be seen as a decentralized low-volatility version of Bitcoin (BTC) that incentivizes bean holders to participate in beanstalk's economy

- How supply levers could allow beanstalk to achieve the digital currency objectives Bitcoin (BTC) originally envisioned

- How volatility and large drawdowns are normal and accepted by bean vs. how large drawdowns set LUNA into a death spiral

- Is Bean Luna/Terra with better peg mechanics or a decentralized, low-volatility digital asset similar to $BTC?

We have loved diving deepe

Follow the Moonshot Research team @USA_Pharoah, @KidQuartz1 and @PapaPelli or visit us at www.moonshotresearch.xyz.