Beethoven X is a decentralized market making protocol that lets anyone trade or provide liquidity (to earn trading fees). It is a fork of Balancer V2 built on the Fantom network.
Beethoven X pools (composed of up to 8 different crypto assets) can be thought of as a self-balancing index fund, whereby the liquidity providers get paid when their deposited funds are automatically rebalanced by external arbitragers. When a Beethoven pool is created, the ratio of tokens in the pools is set. This pool is then constantly rebalanced as users make trades within the pool to ensure that each asset maintains a proportional value to the rest of the pool. The Beethoven system automatically determines the best available price from its range of available pools via its Smart Order Routing (SOR) system.
Beethoven collects revenue from trading and flash loan fees. Pool trading fees are highly customizable, ranging anywhere from 0.0001% to 10%. Beethoven takes 30% of all fees collected from trading and flash loans to buy BEETS and redistribute them to fBEETS holders (represents LP positions), 50% of protocol fees used to build a diversified DAO controlled treasury, and the remaining 20% used to fund the team's continued development and protocol infrastructure costs.
You earn rebalancing fees for maintaining the crypto equivalent of an index fund on Beethoven. Some Beethoven pools also offer additional incentives in the form of native protocol tokens and the BEETS token, which can be used to direct 30% of protocol emissions to specific pools on a bi-weekly basis.