Beethoven X

Market Making

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.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Beethoven X builds upon Balancer's automated market maker (AMM) model with its rebalancing index fund, creative branding, and lower gas fees on the Fantom network.
What we like less
The Beethoven exchange can be confusing and uneven pools have higher slippage costs due to its inherent design, which can result in lower trading volume and yield.
What it means for you
Beethoven X offers a great way for you to get exposure to crypto assets on Fantom while earning yield as the pool is automatically rebalanced by external arbitragers.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: BEETS
  • Tags: Market Making
Key Metrics
  • TVL: $33.1M (Rank #108)
  • TVL Ranking by Market Making: #0
  • Blockchain: Optimism, Fantom
  • Chain TVL
    • Optimism: $19.41M
    • Fantom: $13.71M
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Trail of Bits audited in February 2022 and code has proven to be exact copy of Balancer, which has several experienced audits
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Requires members of a DAO to vote on-chain for approving contract upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • At least one minor governance issue documented
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
  • Beethoven X is a Balancer fork implemented on the Fantom chain
Things to know about Beethoven X

How Beethoven X works

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.

How Beethoven X makes money

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.

How you make money on Beethoven X

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.

Beethoven X Pools
Beethoven ETH Market Making
rETHETH
0.2%
Yield
$4M
TVL
Risk
C
Protocol
Beethoven X
Chain
Optimism
Details