Beethoven X
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Beethoven X

Beethoven X — Quarter 3 Report

Re-imagineering the future of DeFi, one piece of music at a time.

The past 3 months have been unbelievably exciting. Despite the continuation of the Great Bear of 22’ there has been major development within the protocol and we couldn’t be more proud of how far we have come. As a community, as a collective, we have crossed major milestones that only 9 months ago seemed like a distant dream on a foreign shore somewhere far away.

DeFi moves incredibly fast and what that has catalyzed is a culture primed for growth and development. The currents that shape the industry around are constantly shifting and there has never been a time quite as distinct as now. With the winds of growth and change in our sails, this past quarter has really been about the evolution of our music.

We have grown as a protocol, we have grown as a team but most importantly we have grown as a community.

As we step into the future of the financial movement revolutionizing the world, the one thing that becomes ever more apparent is that it is truly the people that lie at the heart of change. As a great sage once eloquently said:

“The future of DeFi rests in the hands of its innovators and it’s the people that will guide this change”

We couldn’t do all of this without you and together, we will undoubtedly leave our mark on the future. Beethoven style.

Without further ado, we present to you the Quarterly breakdown!

It’s time to take a closer look at what’s going on under the surface…

Quarterly Performance Report

Before we bask in the glory of the music, let’s first take a look at the score! Once again, we ask you to come closer and gather around the conductor’s podium. It is time to review the monthly and third-quarter financial performance reports.

The report aims to define the metrics of success in a fun, simple and easy to understand manner as well as offer insight and transparency to you, our users. It is based on the presentation given during the Monthly Community Town Hall AMA and is a way that users can stay up to date with the more quantitative aspects of the protocol.

The performance report will cover the following topics:

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

Let’s dive right in!


September was a month dominated by global economic headlines, CDS became a buzzword, and UK bonds became relevant again (unfortunately for the wrong reasons).

So, while the financial world attempts to set fire to the rain, at Beethoven we’ve had our heads down and were delighted to celebrate:

  • Launched new boosted pools on Optimism
  • Monthly TVL outperformed our competitors on Optimism
  • Over $338m in volume for the quarter, bringing the annual total to $7.6bn
  • $0.7m in swap fees for the quarter, bringing the annual total to $11.8m
  • Acquisition of veBAL, auraBAL and vlAura

The deployment of the new boosted pools is a significant step forward in what the future of Liquidity provisioning could look like. We are excited to show our wider audience everything this technology can offer.

Protocol Performance

TVL Growth

Market-wide there was an overall downtrend for September. These underlying movements have a direct impact on our TVL as well as our competitors and the network. Key price changes were:

- Bitcoin depreciated (2.7%)

- Ethereum depreciated (14.4%)

- Fantom depreciated (17.8%) and

- Optimism depreciated (19.3%)


TVL on Fantom was down 13.7% for the month, while protocol TVL was down 14.4% it was largely aligned with the rest of the network. All major DEXs on the network had negative TVL growth for the month

The fourth quarter gives us the opportunity to capture more market share with the roll out of boosted pools. We look forward to the challenge and showing you the results in future months


The release of new pools meant that the month had a strong close.

We achieved a growth of 333.2% for the month outperforming all competitors and the network TVL growth.

At the time of writing our TVL has doubled from September month end and we hope to continue this momentum until the end of the year.

Swap Volumes and Fees

This month saw a continuation of the declining activity across Fantom. This impacted both us and our competitors.

On the Optimism front the decline was driven by the carry over of paused emissions. This was done so that with the launch of the new pools, we were able to create more focus there.

In October we are already seeing the benefit of this strategy, not only has the TVL significantly increased, but we have also already matched September for volume and fees.

This is all without aggregator integration, so we are still only at the beginning of this next phase.

We look forward to seeing what impact the new pool roll has on Fantom, and the results we can achieve for both networks until the end of the year.

Second Quarter Summary

Over the quarter Beethoven X saw $338m in trade volume, which generated $699k of Swap Fees. Both these metrics are down from Q2. We also closed on 30 September with a TVL of $58m, down from the $81.1m balance on 30 June.

While the USD value of activity has been negatively impacted, usage of the exchange continues to increase. Over the quarter, we saw 4m Swaps booked on the exchange. This is a 50% increase from the 2.7m booked in Q2.

Year to Date Summary

Since the start of the year, we have seen $7.5bn of exchange volume, $11.8m in swap fees and 8.7m trades booked through our exchange.

While the year has been rather challenging, these are numbers we are very proud of.

Top Performing Pools

Top performing pools on Fantom

A Late Quartet continues to be our flagship pool bringing in the lion’s share of activity and fees.

While Fantom of the Opera is the second-best performing pool, there has been a widening of the gap in their relative performance. This is as a result of voter incentives being directed towards A Late Quartet

Top 5 performing pools on Optimism

Happy Road contributed 32% of the fees earned next biggest contributor was All You Need is Love which brought in 22%

BEETS Performance

Monthly Summary

The price of BEETs moved in line with other Fantom native tokens. BEETs opened the month at $0.056 and the trend for the month was downwards, the month closed at $0.03.

Quarterly Summary

If we look at the performance over the quarter, we can see that the BEETs price performance was largely in line with that of our competitors on the network.

Curve’s performance was largely aligned with that of Ethereum which was up 25.7% over the quarter.

When reporting and compiling the data, as far as possible, external data is used as that is often the most accessible. It also gives users of our report to verify the numbers that are presented.

Why is this important? During September we noticed that the supply data displayed by CoinGecko was incorrect, impacting our displayed market cap. Correcting this led to positive market cap growth for the month.

Balances and Metrics

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.

Hidden Hand and Votehoven relate to voter incentives, while the Optimism incentives relate to traditional liquidity mining

Assets held by Treasury

The majority of the negative changes were driven by the depreciation of the underlying token prices. Some other key drivers:

  • $75k reduction in USDC was primarily driven by the acquisition of the Ethereum-based assets (veBAL, auraBAL and vlAura)
  • The increase in Tarot deposits was as a result of depositing an additional 250k BEETs to earn fees
  • $BEETs and $OP balances on Optimism were used as incentives, contributing to the decrease in balances

The image below breaks looks at the largest 5 balances and their percentage of the treasury total. The efforts throughout the year have enabled us to achieve a more diversified treasury balance

Protocol TVL

At the end of September total, TVL was split stable pools 41.4%, weighted pools 34.1% and boosted pools 24.5%.

On Fantom the TVL is fairly evenly spread between the pool types, while on Optimism it is concentrated (83.4%) around the new stable pools launched close to month end.

September brought with it not only the close of the month but also that of the third quarter. While the month and quarter, in general, was challenging, the changes towards the end and early October makes us excited for what the fourth quarter can bring.

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.

Numbers are immensely important and when it comes to execution the Finance department at Beethoven X never fails to deliver. We’d like to take a quick moment here to show some love to the team members behind these magnificent reports and for all the underlying work that goes on behind the scenes to make this magic happen.

Now we have some of the “Theory” out the way, it’s time to make some music. Beyond the realms of finance, DeFi is also a social revolution and at Beethoven X we are never shy of a party. It’s time to kick back and it’s time to let loose. Join us as we reminisce on some of the memorable moments of the Quarter just passed.

Memorable Moments

We must always look to the score for guidance, but it’s the magic within the music that truly defines us. Stories, memories, and evolution, this quarter has been a mirage of unbelievable growth. The months have flown by but we definitely didn’t let them unravel before us.


Jacked up on Beetlejuice and unrivaled Optimism, the Devs have been building this quarter! No excuses; they put in the graft! BEETS V2, new factory pools! So much hard work came to fruition in the blink of an eye. The new front end is fresh, fast, and fluent. A masterpiece that even Beethoven would be proud of! But true beauty is not what the eyes behold; the magic is within.

Under the hood, the Optimism DEX saw the rollout of new magical and marvelous Metastable and Boosted pools! The future is interest-bearing people! Not only are the new pools more rigorously tested, efficient and mesmerizing, but they also unlock an innovative source of protocol revenue. How? With these new factory pools, a protocol fee is now taken on the IB yield generated. Any token that naturally increases in value due to underlying staking or boosted yield now offers an innovative solution to revenue.


This quarter has been unrivaled in excitement and opportunity! The launch of the new pools caused quite a stir in the Optimistic city; far and wide, maestros were breaking down to the sound of the boosted beats! New collaborative, funky, and downright badass boosted pools caused the TVL on the DEX to surge to an ATH. Famed artists from all over the city attended the show; Lido Finance, Rocket Pool, Reaper Farm, Granary, Aave, and Qi DAO are to name a few. This party wasn’t a spontaneous occasion, in fact, it was a meticulously planned spectacle. How so, you ask?

Back in June, melodies and symbiosis rang true as we set off with Balancer on our journey to the city of Optimism. BAL would be the emission token, and Beethoven X would run the DEX, but with BAL as liquidity mining incentives, the power to direct token emissions fell in the hands of veBAL rather than fBEETS holders. When the initial pools were successfully integrated into the veBAL gauge in August, it opened the door for strategy to take center stage.

veBAL Strategy

Gauge incentives have historically proven an efficient mechanism to bootstrap the adoption of liquidity pools. We knew this and had prepared diligently with 3 million BEETS, 500000 OP, and protocol fees. When the first gauge vote went live, Beethoven X offered gauge incentives for vlAURA holders to vote for our pools. Why vlAURA holders? Aura boasts a similar concept as convex is to curve. Aura buys up veBAL, and users who hold Aura’s governance tokens can vote to direct the BAL emissions the protocol has power over. Efficiency is key and at the time, offering gauge incentives were a far more efficient mechanism for liquidity mining returns for protocols.

But DeFi is an ever-changing fluent space; flexibility is essential. To ensure that Beethoven X is anchored in resilient foundations, we implemented many other strategies to ensure BAL emissions continually flow to the DEX. Alongside regular liquidity mining and gauge incentives, we harnessed the ability to direct emissions via POL farming and BAL governance acquisition. At the end of August, $278,000 was reallocated from A Late Quartet on Fantom and deposited into Rocket Pool on Optimism. Any BAL that the POL earned has been paired with ETH, locked into veBAL, and used to vote and direct BAL emissions.

In September, another governance vote then altered the allocation of protocol fees on Optimism. Instead of 50% of protocol fees flowing to the treasury, that portion now purchases Aura, veBAL, and auraBAL monthly. To kick this strategy off, Beethoven X invested $25,000 into each token, ensuring a diverse and systemic approach to participation. Not only have we successfully deployed on Optimism this quarter, but we have strategically positioned ourselves to efficiently participate in the BAL wars no matter the market conditions.


Evolution. Change. There is always room for improvement. Bear markets gift the chance to take a step back, assess the situation, and analyze potential outcomes. The team did a lot of that this quarter. One particular situation scrutinized was the integration of locking for fBEETS on Fantom. Gifted time to reflect, we realized that although widely utilized, the current locking mechanism had some major drawbacks that made the mechanism a questionable choice for future implementation. Forceful. Inefficient. Locking was not a fair venture for all. Exploration and curiosity are the drivers of our growth and our evolution. So, we searched for solutions.

Inquisitiveness so often uncovers value, and this was no exception. The Reliquary stepped out of the shadows as an innovative primitive that offered an alternative solution to the shortcomings of the current vote escrowed model. Through the use of financial NFTS, the Reliquary offers users the freedom and flexibility to build sustainable positions over time that align users’ incentives with the desired outcomes of the protocol in a more ethical manner. After putting our research forward to the community, we opened a vote to instead transition to this model, and at the end of September, this vote passed. The DEVs are now hard at work getting ready for deployment in the next few months!


Looking back at this quarter, it’s evident that financial and technological development has been around every corner! But, DeFi is about so much more than finance. It is the evolution of governance and the progression of collaboration. At the end of August, the new DAO framework launched Beethoven X into a more synergetic future. Building a framework for governance is no easy feat, especially decentralized financial governance. These types of tunes have never graced the soundwaves before. To create something truly magical, we had to draw the advantages of old systems into the new.

In a space that is rapidly evolving, time is often precious, and reactivity can be essential. Thus, the new framework aimed to ensure an inclusive decision-making process that is also streamlined and efficient. The Beethoven X DAO is a Ludwig-centric, efficient and resilient system. The new framework unlocked a simple pathway for users to become even more connected within the protocol, and with a seamless flow between the committees and users, the Beethoven X DAO is a stride forward into a more decentralized and collaborative future.


Dj, switch up the BEET! We moved onwards, forward, ever-adapting, ever-changing. Not only have we evolved as a protocol and community, but the underlying tokenomics of fBEETS has also changed. Back in August, BIP-14 proposed to change the mechanics surrounding the fBEETS buyback. Previously, 30% of Beethoven X’s protocol fee was used to buy BEETS off the market and then distributed to fBEETS holders via an increasing ratio of fBEETS to Fidelio Duetto BPTs.

BIP-24 changed this; instead of increasing the fBEET ratio, the fees now flow to fBEETS holders in the form of gauge incentives. The reasoning behind this change was that it allowed users to earn a greater return while simultaneously ensuring that the highest revenue-generating pools received a substantial portion of gauge incentives. So far, 536,862 BEETS ($18253) have flowed to users as gauge incentives to vote for high revenue-generating pools such as Late Quartet.

Did someone say flywheel?

Why is it in Beethoven’s best interest to ensure these specific pools receive ample gauge incentives? It’s the magical flywheel term! An increase in gauge incentives results in an uptake in users voting for those pools, which causes an increase in BEETS emissions, this then commonly sees a boost in TVL and swap volume, which then feeds back to an increase in revenue! Round and round we go! However, there is one downside to this; an increase in TVL doesn’t always correlate to an increase in swap volume… Swap volume hinges on market sentiment. BIP-24 set the stage, but it’s the next act that will wow the crowd.

30% of all protocol fees across both Optimism and Fantom flow to fBEETS holders. With the recent successful launch of the new factory pools on Optimism, fBEETS holders have begun to see these incentives increase. This is partly due to increasing swap volume but also down to the innovative interest-bearing protocol fee that has recently been implemented. Innovative interest-bearing protocol fee? Please go on…

Sustainable protocol revenue

This is far BIGGER than it sounds. This has unlocked a sustainable and promising new source of protocol revenue that is purely dependent on TVL. This is a huge leap in ensuring sustainability and profitability for the years to come. For the first time, Beethoven X is no longer tied to swap volume as a primary source of revenue. This is unlike any other DEX in space. Truly unique! Not only is this hugely beneficial for the protocol, but this fundamentally secures a continuous source of revenue for our fBEETS holders and feeds back into the Liquidity Pool as incentives. Boom.

X Fund

Impact over Intention. At Beethoven X we truly care about the beautiful planet that we live in and all of its wonderful inhabitants. A commitment we have made as a collective is to make sure we do our very best to support and protect the world around us in as many ways as we possibly can. The X fund is our promise as a protocol to giving back and to re-imagining what it means to be part of a global community. “Above and Beyond” and “Leave no Trace” are the arcs (environmental and social) that define the X fund and they embody our philosophy to give back to the beautiful planet that surrounds us, unapologetically.

Leave No Trace focuses on offsetting our carbon footprint by investing in processes that actively compensate for the emissions of team and protocol.

Above and Beyond looks to our cultivation of community support by distributing funds to social organizations around the world that address social issues pertinent to the experiences of life endured through circumstance.

The data for Q3 is currently being collated and will be presented to the community as soon as it has been finalized and funds have been distributed.


Security, security, security!

When it comes to DeFi the most important base layer and one which is often overlooked by the masses is security. Without a bulletproof foundation that has been put through rigorous testing, users are exposed to elevated risk factors that compromise safety and adoption. By prioritizing security and investing in initiatives like bug bounties / smart contract audits protocols can actively combat many of the security risks inherent to the industry. We have been supporting this endeavor diligently and in as many ways as we can.

As a community, Beethoven X has been an active contributor to the Balancer Labs Bug Bounty programme; as we encourage white hat hackers, the belief is that we also promote a culture of safety and mitigate some of the risks we face as a collective in DeFi. The Balancer Bug bounty only covers part of the spectrum for smart contract risk on our Platform and a such, we launched our own bug bounty to incentivize protocol-specific security. For more details on the specifics, check out the following article

Social Science Lab

The social science lab has been on an absolute roll this quarter. With so much unfolding in the space, it’s been critical to take a step back and try to make a little sense of the surroundings. It has become ever more apparent that DeFi is much more than a get rich quick scheme and has deep roots in the social strata that define who we are as beings. Community is everything and human behavior simply cannot be overlooked. In the wake of the crisis caused by the fall of Terra Luna the need to make sense of the home, we all call DeFi approached necessity. How could these things happen? What does this mean for the future?

Over the course of 3 months, Josey embarked on a quest to find the missing links in our knowledge and attempt to bridge the gaps surrounding the crisis in crypto. As with every great exploration, the journey to the peak of understanding was no easy undertaking; there were trials and tribulations but in the end, the social labs and their team of scientists came out victorious. The result of this expedition is an absolute masterpiece of a thesis. Over the coming weeks, we will be breaking down all of the key discoveries and sharing with the community everything that was learned.

Lotus Room

Community is everything and the Lotus Room has been one of the ways we could give back. Inspired by the need to have space where everyone could recharge and reconnect, the Lotus Room has found its way into the hearts of many of our Ludwigs. What started out as exploration has now cemented itself as a foundation for connection and community. The weekly community breathwork sessions have been a lifeline for both the team and our users. Guided by Yogi Astralnaut, the breathwork/meditation has provided a solid ground for restoration and the evolution of our music. Beyond the realms of the breath, the Lotus Room has also fostered the development of community conversation; from Tech Tuesdays to Conscious Conversations there has been budding enthusiasm for these sessions and they continue to grow week by week.

Battle of the BEETs

Every symphonic masterpiece needs space to shine; in September, that opportunity came knocking! For the first time ever, we ran a community competition where users were asked to compose their own liquidity pool in a battle to win a bounty of prizes. With meticulously selected fair and competitive metrics for success, the competition got fierce; it truly was a Battle of the Beets! It came down to the last few days, a nail-biting finish that could be followed along with our very own BOTB leaderboard! A huge congratulations to the top 3 pools who won a share of 10,000 BEETS and NFT prizes.

🥇 Divine Root Profiteer


🥉 Pirate’s Paradise


Music is about the journey. The adventure. The feeling and the flow. It’s powerful! A mesmerizing entourage of rhythm and emotion. It embraces, it pulls, it pushes. We all find ourselves lost in the everlasting moments that music conjures. It all happens so fast! The music suddenly fades, the symphony settles, and you are left wondering what just happened. Where did the time go?

In these moments, we get the chance to reflect, learn, to grow. To understand what has happened, where the journey took us, and where are we heading. This quarter has been nothing short of jam-packed. Even when the markets may look dubious, we have explored onwards, developed, and built.

The evolution continues….



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