Pods
Last updated
Last updated
Pods are the Beanstalk-native debt asset, redeemable for 1 Bean each once Ripened into harvestable pods. Pods can be bought and sold through the Beanstalk Pod Marketplace here or sown for Beans through the field here.
Consider the following representation of the Beanstalk Pod Marketplace, which has a podline of over 800 million pods. Each dot represents a buy or sell order at the time of posting.
Observing the buy and sell orders for Pods on the open market reveals significant discrepancies, highlighting the need for a pod pricing oracle to determine fair market value.
Irrigation has developed a custom pod pricing oracle that assigns a fair market value to each pod on the podline based on factors such as its place in line, the speed of the line, and the mean value of pods in the plot.
Using the pod pricing oracle, users can deposit pods into a TrancheBond contract by selecting which plots and how many pods to deposit. The TrancheBond contract then creates a variable risk pool that is divided into three segments: A, B, and Z-tranches. To achieve this, the value of each pod is combined into $1 drops as pictured below.
These pod positions can then be sold through the Auction Market.
Let's consider a user who owns pods distributed across different positions on the line:
1,000 pods at 100M place in line
1,000 pods at 300M place in line
1,000 pods at 500M place in line
Total = 3,000 pods
The fair market value (FMV) of these pods, determined by the oracle, is then calculated using the Bean denominated value (BDV). Based on the current Bean price, the oracle assigns a USD value to each tranche, and the pods are separated accordingly.
The price oracle assigns the following values to the different tranches as follows:
A Tranche: $333.51 (representing the first 20% of pods, which is 600 pods)
B Tranche: $500.26 (representing the middle 30% of pods, which is 900 pods)
Z Tranche: $833.77 (representing the last 50% of pods, which is 1,500 pods)
After this interaction, the user's position value is still equivalent to holding their original number of pods. However, they now have separate assets that represent different parts of the podline:
The A-tranche represents the first 20% of pods
The B-tranche represents the middle 30% of pods
The Z-tranche represents the last 50% of pods
