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BEETS Liquidity Staking

TLDR

  • We will incentivize 80/20 BEETS pools 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.
  • In the near future, 30% of all protocol fees will be distributed to Liquidity Stakers in the 80/20 BEETS/FTM pool.

80/20 BEETS Incentivized Pools

The primary source of initial liquidity for the BEETS token will be the 80/20 BEETS pools hosted on Beethoven X. To incentivize deep liquidity for these pools, we will be allocating them the largest multiplier across all available farms.

Benefits of the 80/20 Weighted Pools

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

Protocol Fee Distribution

In the near future, 30% of protocol fees will be redistributed to the BEETS lp. This happens by means of a SushiBar (xSUSHI) variation, let's call it the BeethovenOrchestra. Liquidity providers’ of The Fidelio Duetto (80/20 BEETS/FTM) will be able to stake their LP tokens in the BeethovenOrchestra and receive “fBeets” (or “fresh Beets”) these represent your LP position, which will grow over time the longer you stay in the BeethovenOrchestra. A new farm will be created for fBeets and emissions of the current BEETS/FTM farm will be redirected to this new farm. Once a week, the protocol fees are collected and 30% wil be put into the BEETS/FTM pool. The received LP tokens will then be transferred into the BeethovenOrchestra (the SushiBar) increasing the value of the fBeets token. This process is a manual effort for the time being but will be automated with a contract as soon as possible.
The characteristics and benefits of the 80/20 weighted pool will allow us to forgo any single staking pools for the BEETS token.