Beethoven X 101: Become a DeFi composer
Flexible and efficient, Beethoven X is a decentralized investment platform built for the future of finance. Leveraging the most advanced technology in the industry, we provide an innovative solution for liquidity provision that is focused on sustainability, accessibility, and capital efficiency.
Let’s get creative!
Why just listen to the music when you can create it? The following article will describe in detail how to add liquidity (invest) into the Beethoven X platform
Step 1: Enter the site
Every great composer has to start somewhere. The first step for every aspiring DeFi Ludwig is learning how to play. Are you ready Ludwig? Are you ready to craft your first DeFi symphonic masterpiece? Let’s get the players together and create a DeFi musical pool!
For this example, we are creating the music on Optimism! The same steps apply for our Fantom DEX.
Step 2: Invest page
To create the music, you first need to head over to the invest section at the top of the page.
The initial pools for you to view are the “Incentivized pools. These are symphonies already crafted by other budding composers and are pools that have additional incentives (besides swap fees) flowing to them.
On Beethoven X, you have complete flexibility and can compose your own pool with up to 8 tokens consisting of any weight. You can let your creativity free! However, for this particular symphony, we will show you how to add liquidity to one of these already crafted pools.
Step 3: Explore the pools
For this example, we will provide liquidity to the Rocket Fuel pool, a wETH-rETH metastable pool! This pool differs from a stable pool via an innovative mechanism known as a rate provider: a contract that constantly updates the ratios between ETH and rETH to ensure all the yield from the underlying staked ETH flows to you as a liquidity provider!
Pretty neat ey! But I digress; let us get back to the music!
Step 4: Pool information
You can’t create music without first looking at the score! Scroll down to the “About this pool” toggle; here you can find all the detailed analytics of the pool. You can switch between “BPT price, Volume/ TVL, and Fees” to grasp the past performance of the pool.
If you scroll further down the page, you will find detailed statistics and descriptive overviews of the tokens included in the pool. Every symphony has different players, and every player adds their unique tune!
Step 5: Connect your wallet
Before you make the music, you must allow Beethoven X to access the players. In this case, we are talking about the tokens within your wallet. It’s super simple! Just click the “Connect wallet” button in the top right corner, select the web3 wallet you wish to connect and voila!
After signing in and approving the transaction, your wallet will register in the top right corner of the page.
Step 6: Investment information
You are now well on your way to creating your first masterpiece. Simply click “INVEST”. Here you will find some important information regarding the particular pool type.
As this is a metastable pool, the invest page explains how investing in custom token ratios can move the asset ratios in the pool apart. Although this action doesn’t have a considerable effect in a metastable pool, you can still incur a small penalty in the form of price impact.
Step 7: Custom investment
You are killing it, Ludwig!
The next step is configuring the amount you want to invest into the liquidity pool. This amount is completely customizable. However, you should consider that your investment can be influenced by price impact if you move the pool ratios apart considerably.
Are you confused by the terms? Hover over each of the information buttons and discover what each phrase means. Or, quickly check them out below:
Price impact: This is the difference between the current market price and the price you will pay due to your investment influencing the balance and internal price of tokens within the pool. If you are encountering a significant price impact, you can swap your assets to proportions that will align the pool closer to its intended ratio.
Potential weekly yield: This is your projected weekly yield based on the last 24 hours. The APR is a culmination of swap fees and additional incentives.
Max slippage: This is the maximum amount of slippage that you’re willing to accept for this transaction.
Step 8: Preview and invest!
The preview page gives you another chance to double-check everything is looking oh, so, sweet. After approving the transaction in your wallet, you will have successfully invested in your first liquidity pool!
Nice one, Ludwig. Can you hear that? The symphony is beginning to sound!
You are almost there; there are a couple more things to do though.
Step 9: Stake those BPTs
Upon investing in a liquidity pool you receive Beethoven X Pool Tokens (BPTs). These BPT tokens represent your share of the liquidity pool; at any point, you can use them to redeem your share of the underlying tokens.
What about pool rewards?
Swap Fees: You never need to claim swap fees. These rewards are automatically reinvested back into the pool. Your BPTs won’t increase in size, but the value of your share that it represents will.
Incentives: To earn the additional incentives, you must stake your BPTs! Head to the top of the pool section and click the “STAKE NOW” button.
Step 10: Stake it to make it
Slide that slider all the way (or select the amount you would like to stake), approve the transaction and click stake. BOOM! And just like that, you have made history. You have just created music!
Feel’s good, doesn’t it? Now relax, sit back and relish in the symphony. You deserve it.
The swap fees will automatically compound into the pool, and your additional incentives will accumulate in the top right corner next to your wallet address.
You can always check out your investments by checking out the “my investments section” on the homepage every time you jump onto the site!
We are so stoked to have another esteemed composer creating music. We can already tell you’re going to be one of the greats, you’ve got the skill, rhythm, and flow of a maestro!
Our symphony continues to grow louder every single day, so make sure to jump in and say hey to our wonderful community on Discord. Let’s create something magical!
Love and Kindness from yours truly,