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BEETS Liquidity Staking

TLDR

  • 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.

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 (fBEETS). 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

Gauge Vote Bounty

Since the implementation of BIP -24, a portion of the total protocol fees flows to users who stake their BEETS/FTM LP position (fBEETS) in the form of a Gauge Bounty. This mechanism ensures users actively contributing to the protocol can claim BEETS bounties via engaging in the Gauge Vote.