BEETS Liquidity Staking
- We will incentivize the BEETS/FTM 80/20 pool with farming rewards to promote deep liquidity for the BEETS token.
- Liquidity Providers (LPs) are exposed to minimal Impermanent Loss in an 80/20 weighted pool.
- A portion of protocol fees is distributed to users who stake their LP for fBEETS in the form of gauge vote bounties.
The primary source of initial liquidity for the BEETS token will be the 80/20 BEETS pools hosted on Beethoven X (fBEETS). To incentivize deep liquidity for these pools, we will be allocating them the largest multiplier across all available farms.
As illustrated in the chart below, the 80/20 weighted pool suffers significantly less impermanent loss than the standard 50/50 pool utilized by most AMMs. We see it as the optimal solution to ensure deep liquidity while allowing BEETS holders to maintain long exposure.
Comparison of Impermanent loss for differently weighted pools