# Beanstalk > A permissionless fiat stablecoin protocol Beanstalk is a decentralized stablecoin protocol that uses credit-based incentives instead of collateral to maintain the dollar peg of its native Bean token. Beanstalk is a permissionless stablecoin protocol that issues Bean, a token pegged to the US dollar through credit-based mechanisms rather than collateral. It is classified as a decentralized finance protocol combining stablecoin issuance with borrowing, lending, and DAO-based governance tools. The protocol targets decentralized finance users seeking dollar-denominated liquidity without depositing collateral upfront. Instead of backing Bean with reserves, Beanstalk incentivizes independent market participants to restore the peg through yield-bearing deposits and debt instruments whenever Bean trades away from one dollar. Its Silo component rewards depositors with yield and governance rights, while its Field component issues interest-free debt repaid from future protocol revenue. This credit-based design lets the peg mechanism adjust incentives dynamically based on market conditions. The ecosystem includes Basin, a decentralized exchange protocol used for trading and liquidity provision, and governance tooling that lets stakeholders vote on proposals affecting protocol parameters. It is used by decentralized finance participants seeking stablecoin liquidity, liquidity providers on Basin, and community members participating in governance. The protocol migrated to Arbitrum following a governance exploit and subsequent community-led recovery. - Type: Protocol - Sector: DeFi - Status: Active - Founded: 2021-08-01 - Profile: https://thegrid.id/profiles/beanstalk ## Products - [Beanstalk Protocol](https://thegrid.id/profiles/beanstalk): Beanstalk Protocol is a permissionless stablecoin issuer maintaining the peg of its Bean stablecoin through credit-based monetary policy rather than collateral reserves. Users deposit Bean and other whitelisted assets into the Silo to earn yield, borrow against future protocol revenue through the Field by receiving Pods, and Fertilizer holders receive Bean rewards through the Barn. Each Season, the protocol adjusts a Temperature rate and Soil issuance based on oracle price data to push Bean's price back toward its peg, while a Pod marketplace lets holders trade debt positions and governance token holders vote on protocol changes. (Stablecoin Issuer, Live, Main Product) - [Basin](https://thegrid.id/profiles/beanstalk): Basin is a composable, EVM-native decentralized exchange protocol that lets developers assemble custom liquidity pools called Wells from interchangeable exchange functions, oracles, and implementations. Each Well combines a pricing function with an optional on-chain oracle called a Pump, allowing market makers to deploy liquidity with tailored pricing logic and multi-block MEV resistance. Users can swap assets without trading fees, provide or remove liquidity in balanced or imbalanced proportions, and developers can build new Wells from audited, reusable components. (Decentralised Exchange, Live) ## Assets - [Bean (BEAN)](https://thegrid.id/profiles/beanstalk): BEAN is a USD-pegged stablecoin issued by the Beanstalk protocol on Arbitrum. It is used for payments, as collateral in DeFi applications, and to earn yield through staking in the Silo. The protocol maintains the peg through credit-based mechanisms that attract lenders to burn Beans when the price falls below $1, and mints new Beans to distribute when the price rises above $1, operating without traditional collateral requirements. (Stablecoin) - [BeaNFT (BeaNFT)](https://thegrid.id/profiles/beanstalk): BeaNFT is a collection of ERC-721 non-fungible tokens tied to the Beanstalk protocol. Holders vote on BeaNFT Proposals shaping new collections and collection upgrades, and past BeaNFTs have been awarded to Farmers for interacting with Beanstalk during specific periods. Separate Genesis, Winter, Barn Raise, and Basin collections each mark a distinct phase of the protocol's history. (NFT) - [Stalk (STALK)](https://thegrid.id/profiles/beanstalk): STALK is the governance token of Beanstalk. It is used to vote on Beanstalk Improvement Proposals and to earn a pro rata share of new Bean mints, since holders' share of seigniorage rewards is proportional to their Stalk balance. Depositing assets in the Silo grows Stalk over time through Seeds, compounding a depositor's governance weight and future Bean allocation. (Governance) - [Unripe Bean (urBEAN)](https://thegrid.id/profiles/beanstalk): Unripe Bean is a claim token issued by Beanstalk representing a vesting share of Ripe Beans owed to holders who held Beans before the 2022 exploit. It is deposited in the Silo to earn Stalk and Seeds while gradually converting to Ripe Beans as the Barn Raise recapitalizes protocol liquidity. Its redemption value rises over time on a vesting schedule tied to Fertilizer sales and Bean supply growth. (Stablecoin) - [Unripe LP (urBEANwstETH)](https://thegrid.id/profiles/beanstalk): Unripe LP is a claim token issued by Beanstalk representing a vesting share of Ripe BEAN:wstETH liquidity owed to holders who provided liquidity before the 2022 exploit. It can be deposited in the Silo to earn Stalk and Seeds while its underlying value converts to Ripe LP as the Barn Raise recapitalizes protocol liquidity. Its redemption value increases on a vesting schedule tied to Fertilizer sales and Bean supply growth. (Utility) - [Fertilizer (FERT)](https://thegrid.id/profiles/beanstalk): Fertilizer is a semi-fungible ERC-1155 debt token minted by Beanstalk in exchange for wstETH to recapitalize liquidity lost in a 2022 governance exploit. Each unit carries Sprouts, representing debt Beanstalk repays in new Beans, and moves toward being fully redeemed as its Sprouts are fertilized. Its supply is capped by the amount needed to fully recapitalize the stolen liquidity, tying issuance directly to protocol solvency. (Utility) ## Links - [Main](https://bean.money) - [Blog](https://bean.money/blog) - [Whitepaper](https://bean.money/beanstalk.pdf) - [Documentation](https://docs.bean.money) - [Governance](https://snapshot.org/#/s:beanstalkdao.eth) - [Twitter / X](https://x.com/beanstalkmoney) - [Twitter / X](https://x.com/BeanstalkFarms) - [GitHub](https://github.com/BeanstalkFarms) - [Telegram](https://t.me/beanstalkusd) - [Twitter / X](https://x.com/basinexchange) - [GitHub](https://github.com/BeanstalkFarms/Basin) - [Discord](https://discord.com/invite/3QcnNe6ZBD) ## Legal This data is provided under two licensing models. Model 1 - open data. The open data core is licensed under the Open Database License (ODbL) — a copyleft/share-alike license allowing free use, modification, and sharing for any purpose. Attribution is required: include "Powered by The Grid" linking to https://thegrid.id wherever the data is used. Derivative databases must be shared under ODbL terms. 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