Beethoven X
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Beethoven X

August 2022 — Monthly Performance Report

Another month has come and gone and for many Ludwigs, this will be true for their summer. So while we enjoy one more cocktail, or Glühwein (if you’re in the Southern Hemisphere), let’s settle in to look at August's financial performance.

This report aims to outline the metrics of success for Beethoven X in a fun, simple, and easy-to-understand manner, as well as offer insight and transparency to you, our users. Based on the presentation given during the Monthly Community Town Hall AMA, this report allows users to keep up to date with the more quantitative aspects of the protocol.

This article will cover the following topics:

  • Highlights
  • Protocol Performance
  • Top Performing Pools
  • BEETS performance
  • Balances and Metrics

Highlights

In a time when the markets are struggling as a whole, it’s important to remember some of the achievements. Some notable highlights for August:

  • Over 1.1m in swaps booked for the month
  • Over $0.21m in swap fees for the month
  • veBAL gauge integration on Optimism
  • Treasury on Optimism
  • Introduction of the Core Pool model

Protocol Performance

TVL Growth:

The wider industry saw a general downtrend over the month; as a result, most digital assets had negative price movements. Here is a summary of how the important ones impacting us faired:

  • BTC (-14.3%)
  • ETH (-7.7%)
  • FTM (-17.23%) and
  • OP (-28.93%)

Fantom:

TVL on Fantom was down 40.2% for the month, a large contributor to this was the drop in digital asset prices and a significant outflow from Curve (38%).

Spooky’s (12%), Spirit’s (19%), and our (22%) drop in TVL are largely in line with the drop in the FTM price.

Optimism:

TVL on Optimism grew by 52%, this was largely driven by network adoption. Our decrease in TVL is a result of the temporary pause we had on liquidity mining incentives. Since then, veBAL gauges have been activated on Optimism and at the time of writing, TVL has doubled since August month end.

Swap Volumes and Fees:

The struggles experienced by Fantom as a network are having an impact across all protocols.

Fantom Swap volume was $102m (-28%) while Swap fees were $173k (-35%)

The loss of TVL on Optimism had an impact on Swap Volume by $10m (-56%) and Swap fees $42k (-47%) on Optimism.

Top Performing Pools

Top 10 performing pools on Fantom

The pools listed below contributed to 75% of the total swap fees on Fantom.

The three standout pools were:

  1. A Late Quartet with $54,711, 31% of total fees
  2. Solid BEETs with $25,0645, 14% of total fees
  3. Fantom of the Opera with $22,068, 13% of total fees.

Top 5 performing pools on Optimism

The pools shown above account for 98% of the monthly fees earned on Optimism.

The $23,200 earned by Happy Road contributed to 56% of the fees earned on the network.

As we roll out the new boosted pools together with voter incentives, we anticipate a significant shift in the pools that contribute to fees across both networks.

BEETS Performance

BEETs opened the month at $0.084 and the trend for the month was downwards which saw the month close at $0.056.

FTM itself was down 17% for the month, and the trend can be seen in both Boo and Spirit.

Curve’s price movements were more akin to that of ETH, which was down 8% for the month

Balances and Metrics

Financial Metrics

At the moment we consider three financial metrics:

  • Revenue to Emissions Ratio,
  • Protocols Revenue to Emissions Ratio and
  • Revenue to TVL Ratio.

The ratios above are only for activity on the Fantom network, an analysis for Optimism is planned for next month

Revenue to Emissions Ratio: takes the total swap fees divided by the total emissions directed to pools for that time period. This ratio looks to show the total revenue generated per dollar of emissions.

Revenue to Emissions Ratio: same as above, but it only uses the protocol earned part of revenue. This ratio looks at how much the protocol makes per dollar of emissions.

Revenue to TVL Ratio: takes the annualized swap fee and divides it by the average TVL during the period. This ratio shows the dollar amount generated per dollar of TVL.

Swap Fee Flow

Below you can see a breakdown of how swap fees were generated and allocated as part of the monthly protocol fee distribution. It also includes a reconciliation of the Treasury Balance Sheet.

The biggest item this month was the receipt of the OP grant, this will be used together with the fees held on Optimism to help bootstrap liquidity on the network.

For the first time, this month we can see the allocation to both Votehoven and Hidden Hand for voter incentives.

Also for the first time, we see expenses come through the treasury. This was in the form of the treasury covering infrastructure costs and a bug bounty payout.

Assets held by Treasury

The table below shows the Treasury balances at the end of the month.

This month we were able to split the balances at reporting, showing both the holdings on FTM and OP.

The growth in month-on-month balances was primarily driven by the receipt of the OP grant.

The moving of assets held on Beethoven from FTM to OP was driven by the implementation of BIP 24 — https://snapshot.org/#/beets.eth/proposal/0x2de0c116162b820bed17351164f1806106a04eb19c9499648d5725fd75b36dbe

The Rocket Fuel pool is now one of our biggest holdings and the largest four assets can be seen below:

Protocol TVL

August month end saw TVL was split 46% in Weighted pools, 27% in Boosted pools, and 27% in Stable pools.

With the deployment of Treasury Assets on Optimism, at month end the protocol owned most of the liquidity for Stable Pools on that network. At the time of writing, the growth in that pool has brought the ownership percentage to below 15%.

Closing

Thank you for sharing the month of August with us.

Despite the lower performance of the macro environment as a whole, there is still so much to look forward to. With the new pool factories around the corner, we are excited about what the next few months have in store for boosted pools, interest-bearing tokens, and how they can have a positive impact on liquidity providers, traders, and protocol performance.

Not Financial Advice

Investors should remember that the value of $BEETS, $fBEETS, and the income from them, can go down as well as up and that past performance is not a guarantee of future returns. You may not recover what you invest.

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