What Is Beethoven x?
Beethoven X aspires to be a one-stop decentralized investing platform on the Fantom Opera platform, according to the company.
They take use of the best-of-breed DeFi protocols in order to provide unique decentralized investing solutions. Beethoven X, which is based on Balancer V2, is the first next-generation AMM protocol to be implemented on Fantom.
What is Balancer?
Using Balancer, you may automate the management of your portfolio, offer liquidity, and monitor prices.
Rather of paying fees to portfolio managers to rebalance your portfolio, Balancer collects fees from traders who rebalance your portfolio by exploiting arbitrage opportunities. This is a radical departure from the traditional index fund model.
As previously stated, Balancer is built on an N-dimensional invariant surface, which is a generalization of the constant product formula published by Vitalik Buterin and shown to be feasible by the popular Uniswap decentralized application.
Balancer V2 introduces significant new features that will reduce gas costs, improve capital efficiency, enable arbitrage with zero-token beginning capital, and open the door to bespoke AMMs, among other things.
Pools with a monetary value attached to them
AMM, or the standard constant product AMM, popularized by Uniswap, is an extension of the weighted pool concept. Each pool may include up to eight distinct tokens, and each token is allocated a weight, which determines what proportion of the pool is made up by each asset in the pool.
The balancer’s weighted pool equation is an extension of the x*y=k equation that takes into account unequal weights and additional assets. It is as follows:
where V is a constant, B denotes the balance of an asset, and W is the weight of an asset in the pool.
Trading and arbitrageurs rebalance the pool when the price of each token fluctuates, and they do so by executing swaps. This ensures that the proper weighting of the value held by each token is maintained while also collecting trading fees from the participants in the market.
Curve’s StableSwap AMM is a more efficient design for specific assets that are anticipated to constantly trade at or near parity (for example, various versions of stablecoins or synthetics), and it has been promoted for this purpose.
These pools enable bigger transactions of these assets to be executed without experiencing a substantial price effect.
Liquidity Bootstrapping Pools
They are helpful for launching tokens and trading big quantities of money over a period of time. Their weight shifting methods provide high start prices with fluctuating sell pressure as a consequence of the weight shifting processes.
For more information, see LBP’s for Token Launches.
Pools of MetaStables
These are a generalization of stable pools, which are pools of tokens with established exchange prices that are maintained throughout time.
They make use of equations that are similar to those used by stable pools, but they may be used to allow swaps between tokens whose values are slowly fluctuating.
Use-case examples include the following:
- cDAI slowly accumulates lending fees and appreciates relative to DAI
- StaBAL3-USD Pool token collects trade fees relative to other Stable USD tokens
How do Liquidity Providers earn yield?
When there is a transaction in a pool, the pool gets a trade fee from the participants. The trade cost is priced in the input token, which is used to do the transaction. Each pool has its own set of transaction fees, which are determined by the underlying assets.
Aside from that, liquidity providers have the option to stake their LP tokens in the right farms in order to earn extra BEETS liquidity mining rewards.
What is the procedure for receiving my trading fees?
As fees are collected by the pool, your Beethoven X Pool Tokens are also collecting fees on your behalf since they represent your proportionate part of the pool’s revenue.
Consider the following scenario: Alice, Bob, Chuck, and Diana all contribute liquidity to a pool with a beginning value of $100. After some time has passed, it has accrued a large number of trading fees and is now worth $200. Despite the fact that the pool itself expands, their proportionate portions remain the same.
How does a pool determine the price of tokens?
The AMM logic, in general, defines the prices that merchants are willing to pay. Pools with a constant product formula are used in Weighted Pools; Pools with a Stable Swap formula are used in Stable Pools.
How does the self-balancing index fund work?
Beethoven X enables the establishment of index funds that are self-balancing in nature. Investors in exchange-traded funds (ETFs) do not have to pay a portfolio manager to regularly rebalance the fund, as they would with an ETF; instead, liquidity providers earn fees when traders rebalance the trading pools.
This works because market participants are encouraged to rebalance their portfolios in order to take advantage of arbitrage possibilities, which is why it works.
All contracts are irrevocable and cannot be amended or upgraded!
Balancer V2 makes use of an authorization system that provides for fine-grained access control on a function-by-function basis.
The Authorizer contract, which regulates access to all protected function calls, is at the heart of the system.
Default admin role
In contrast to the basic admin position, which does not offer authorization to do any protected functions, it does allow for the giving and cancelling of roles to other entities (or himself).
All entities who have been assigned the default admin role have the ability to grant and revoke execution roles on a function-by-function basis. In the case of singleton contracts, such as the Vault, all responsibilities assigned to it are tied to the contract address.
If we were to install another Vault contract, any responsibilities that had been given on the ‘old’ Vault would no longer be applicable on the new one. In the case of contracts deployed via a factory, such as the pools, the responsibilities assigned to each pool are connected to all pools generated by the same factory address.
As a result, if a role is given on a StablePool that was generated by the StablePoolFactory contract, the role is extended to all other StablePools that were formed by the factory. It is connected to the address of the StablePoolFactory. As a result, if we were to install another StablePoolFactory, the pools generated by it would not have the same access roles as the pools created by the first.
As of right now, only the Balancer Admin multisig has access to all of the roles.
The MasterChef is the owner of the Beethoven X Token (BEETS) and is under a timelock that is set to a minimum of 6 hours.
It is Beethoven X’s policy to employ Balancer V2 contracts in their entirety, which have undergone many thorough audits and are part of a comprehensive bug bounty program to which Beethoven X makes a cash contribution.
Beethoven X has completed an audit with the Trail of Bits team of programmers. You may read the audit in its entirety here.
The most apparent source of Protocol Fees is the financial services industry. Trading firms pay fees to Liquidity Providers in return for facilitating the execution of their swap.
In the course of performing a deal, fees are denominated in the Input Token.
It is planned to collect the Protocol Fees for transactions as a proportion of the trade fees that are presently being collected (a fraction of a fraction). From the standpoint of the merchants, there has been no rise in the price.
Flash Loan Fees
Another source of Protocol Fees is interest on Flash Loans, which is a kind of short-term loan.
Protocol Fee Distribution
Trade and flash loan protocol fees will be used to purchase BEETS on the open market and redistribute them to fBEETS holders, with 30% of the fees collected going to this purpose. 50 percent of protocol fees will be utilized to construct a diversified DAO managed LP treasury that will function as a significant tailwind for future development.
In order to support future development and infrastructure needs, the team will retain the remaining 20 percent of the proceeds.
The team’s funds will be diverted to ensure that Beethoven X remains an environmentally friendly organization, by directly removing all of our Green House Gas Emissions Scope, 1, 2, and 3 and investing in regenerative capturing solutions such as forestry, regenerative agriculture, and direct air capturing (as well as other initiatives).
LBP’s for Token Launches
While participating in a liquidity creation event, protocols may launch a token utilizing Balancer’s Liquidity Boot Strapping Pool (LBP) technique, which is a variation on the Liquidity Boot Strapping Pool (LBP).
When a token is launched via the LBP, the price will first be set high in order to discourage bots, front-running, and speculation. Because of the way the LBP is designed, the price might automatically decline during the course of the liquidity creation event’s lifetime.
In an LBP, the weighting of the launch token and collateral token inside the pool is meant to fluctuate (for example, from 95-5 to 50-50), guaranteeing that the price of the token decreases and the initial capital is increased.
Create an LBP is simple and fully permissionless, which means that anybody can set up a token launch using the UI on Beethoven X and interact directly with the underlying contracts, regardless of their level of expertise. In order to operate on Beethoven X, the LBP must adhere to the contracts developed by Balancer Labs.
The following are the primary characteristics of more equitable launch auctions conducted using the LBP:
- Price Discovery – In the LBP, the price starts off high and then gradually declines over the course of the liquidity generating event, following a predefined price decay curve. Any step of the LBP may be affected by purchasing pressure, which can counteract the price decay.
- Every user has the ability to launch tokens and participate in liquidity generating events without requiring authorization from the LBP’s administrators. There are no listing criteria, and there are no whitelists to follow.
- A fair token launch is important because it eliminates the need to compete with bots or pay large gas costs in order to complete your transaction during a liquidity creation event using the LBP. Anyone may purchase into or sell out of the LBP Pool at any time during the LGE, with no restrictions on when they do so. As a result, price discovery becomes a self-regulatory process, and the token launch becomes a far more equitable distribution event.
- To maximize capital efficiency, the weights should be set such that the original price of a token may be multiplied by as much as a factor of 99 in respect to the initial collateral that was put up with it. The original collateral may be withdrawn in full at any point in time (provided the launch token does not previously exist outside the LBP, enabling someone to sell into the pool).
LBP for Users
When it comes to participating in a token launch, a Liquidity Bootstrapping Pool is the most fair, open, and user-friendly option.
At its core, an LBP Launch utilizing the Liquidity Bootstrapping Pool (LBP) is a crowdfunding method that allows any kind of cryptocurrency project to acquire funds from people all over the world via the use of a single platform.
Whales, geopolitical maps, intermediaries, and third parties are not favored over any other participant, and wealth may flow freely to initiatives that the community deems worthwhile of support within the framework established by the system.
The following are the advantages of launching LBP auctions for projects:
- Price discovery for a new token occurs freely since the fair value is determined in an open and transparent way, allowing for more transparency. A “pre-sale” price does not become a statistic that deters subsequent investors from making a purchase.
- The distribution of fresh tokens to a community of supporters and investors is done in such a manner that sniping bots and whales are discouraged from participating. Because of this, token launches become a more egalitarian and fair procedure.
- Through the use of these funds to offer liquidity on Beethoven X or another exchange platform, new enterprises may get the liquidity they need to jumpstart their operations or make their token marketable. So, users may directly contribute to the success of their favorite projects by making direct donations to the projects themselves.
Beethoven X is a permissionless platform, which means that anybody may establish auctions and LBPs on the site without obtaining permission.
Beethoven X indexes each auction that is published on the platform immediately based on the information that the protocol or project has placed on the blockchain, and this indexing is free of charge.
A project’s inclusion on Beethoven X does not constitute an endorsement or sponsorship of that project by Beethoven X, its community, or anyone else. Due to the high-risk nature of participating in any fair launch auction, the value of tokens you have acquired as a result of your donation may be reduced to zero.
Beethoven X is not liable for any damages that may be suffered as a result of the use of our platform.
Participating in Auctions
Users who desire to participate in an auction will be required to complete a number of stages.
- The first requirement is that you have the financing token that the company has selected to use as collateral for the launch of their token. This is the token that will be used to acquire the newly released token in the LBP auction, which will take place on November 30th. In most circumstances, teams would utilize FTM or a stable coin like as USDC, MIM, or UST as the collateral token, rather than a cryptocurrency. Please keep in mind that you will also need to have some FTM in your wallet for petrol expenses. With the event that you need assistance in financing your wallet, transferring assets to Fantom, or if you are new to DeFI, please see our “New to DeFI & Beethoven X” options here for assistance.
- Go to app.beets.fi and click on the Connect Wallet button in the upper right corner of the screen. Using the Navigation bar, you will now be able to go to the Fair Launch Auction tab.
- You may find the project you’d want to support in the list of Liquidity Generation Event Auctions that are coming up or that are now occurring.
- It is possible that the auction window has already started and that you will be able to participate and acquire the new token at this time. If this is the case, please wait until the countdown has finished. Please remember not to ape in since the price is intended to go down in the future. Consider doing your own study and developing your own theories about when and at what price you are comfortable engaging in an auction.
- In order to purchase the funding token with your collateral token, you must first enter the amount you want to spend on the funding token. The first step is to authorise the expenditure of your collateral token on Beethoven X, which can be found in your wallet (this is only required once). Second, you will need to provide your approval for the token acquisition. When buying from the LBP, you will have a total of two transactions that will need the use of gas.
How to know if you should invest in a Fair Launch Auction
Before investing in cryptocurrency, like with everything else, it is critical that you do your own research (DYOR) and execute some due diligence (DD). Some of the features of a project that you may want to look into are as follows:
- If the price is X and the number of tokens in circulation (new projects tokens assigned to LBP plus created) is Y, the implied market capitalization is Y. What is the implicit market capitalization of the project, which is X * Y? You may make a comparison between this number and those of other comparable initiatives. You will need to know the total amount of tokens that have been issued in order to do this. Please make a comparison between this amount and the total number of tokens available for sale in order to properly assess risk.
- Team reputation – is the team and community active and responsive on social media platforms such as Twitter and Discord? Is there anybody on the squad that has a good reputation? Does the team and project get good feedback from other reliable sources or influential individuals?
- Tokenomics is concerned with how the supply of tokens is divided. Are the tokens issued to the team and prospective investors vested? When are the unlocking events taking place? What variables are likely to have an impact on the price of the token in the medium and long run? How are such projects carried out once they have been launched and beyond?
- LIQUIDITY OF THE LBP – What is the strategy for using any liquidity obtained via the fair launch auction? Will the project make use of it in order to facilitate trading? Will you be able to resell the token if you decide that you would want to?
- It’s all about the product being developed – what will be built as part of the auction’s protocol or project? Do you believe that this concept will be successful in the long run? Are you confident in your decision to stick onto this token, regardless of how the market circumstances impact the price, since you believe in the product and technology?
Beets Liquidity Staking
- BEETS pools with 80/20 splits will be rewarded with farming awards in order to foster high liquidity for the BEETS coin.
- In an 80/20 weighted pool, Liquidity Providers (LPs) are only exposed to a minimum amount of Impermanent Loss.
- It is anticipated that 30 percent of all protocol fees will be given to Liquidity Stakers in the 80/20 BEETS/FTM pool in the not-too-distant future.
Protocol Fee Split
Soon, 30% of protocol fees will go to the BEETS lp. This is achieved using a SushiBar (xSUSHI) version, the BeethovenOrchestra.
The Fidelio Duetto liquidity providers (80/20 BEETS/FTM) may invest their LP tokens in the BeethovenOrchestra and get “fBeets” (or “fresh Beets”).
The present BEETS/FTM farm’s emissions will be routed to the new fBeets farm. Weekly protocol fees are collected, with 30% going towards the BEETS/FTM pool.
This will increase the value of the fBeets token by transferring the LP tokens to the BeethovenOrchestra (SushiBar). Currently, this is a manual procedure that will be mechanized as soon as feasible.
The 80/20 weighted pool’s advantages enable us to avoid single staking pools for the BEETS coin.
The BEETS coin serves as the protocol’s governance token, and it is issued by the Beethoven X Foundation. Additionally, BEETS liquidity stakers will soon be able to obtain a percentage of the protocol fees that are collected. BEETS have a maximum supply of 250,000,000 units in total.