BEETWARS 2.0 — May the force BEETS with you
The music of Beethoven X is an everchanging melody. Evolving, shifting, and adapting with the times. Since the inception of the Beetswars much has changed, the landscape has reformed and with it, our sonata has followed.
It’s time to dive back into the fundamentals of the Beethoven X BEETS Wars.
It’s time for a new verse to commence.
It’s time for the BEETS Wars 2.0.
If you wish to skip to a specific section, please check out the glossary below:
Section 1: Gauge Vote Explained
- A little Bit of History
- The Gauge Vote
- Gauge Cap
- Creating a pool
Section 2: Reliquary
- Fresh Beets Pool
- fBeets
- Reliquary
- maBEETS
- How to guide
Section 3: Voting
- Snapshot
- Bounties
- Hidden Hand
SECTION 1: Gauge Vote Explained
A Little Bit of History
One of the most widely utilized contracts in DeFi is something known as the MasterChef. Created by SushiSwap, the contract has become a central part of DEXs far and wide. So, why is it so popular? The MasterChef has allowed DEXs to not only offer rewards in terms of swap fees but also additional Liquidity Mining incentives.
For Beethoven X, these additional Liquidity Mining rewards are distributed in our native token — BEETS. The MasterChef emits these tokens on a per-block basis, meaning there is a constant stream of BEETS incentives flowing to the pools on the Fantom DEX. Delicious and nutritious, liquidity providers on the platform unlock the ability to earn these Beets by staking their pool tokens.
For all newly minted Beets emissions, a small portion flows to the treasury, and the rest flows to Liquidity Providers in the ratio shown below:
The question then arises: which specific pools do these incentives flow to?
The incentives flowing to Liquidity providers are split into the following ratio between music-director allocated core pools and pools integrated into the gauge.
Core Pools — are Liquidity Pools that are deemed to be the most efficient, popular, and profitable pools for both users and protocol. These pools are governed by the Music Directors and are subject to change depending on market conditions.
Gauge Pools — are Liquidity Pools that have passed a certain set of requirements to be integrated into the Beethoven X Gauge vote.
Hold up, hold up. What’s a Gauge?!
The Gauge Vote
The Gauge vote is a system that has become an industry-wide standard for Decentralised Exchanges. It allows governance token holders of the protocol to vote and dictate where a portion of the DEXs emissions flow to. Let’s break it down with the BEETS Gauge system.
The Gauge vote has proven an efficient mechanism for directing BEETS emissions to Liquidity Pools on the Fantom DEX. Rather than the protocol deciding where all the token emissions flow (Core Pools), the decision is shared amongst Beethoven X’s treasured governance token holders — maBEETS.
The distribution and direction of these BEETS are decided on a bi-weekly cadence. Thus, users who hold Beethoven X’s governance token, maBEETS, unlock the ability to participate in a bi-weekly vote to determine which specific pools 50% of the BEETS emissions flow to.
Gauge Caps
To ensure the protocol continues towards its mission of longevity and sustainability, a gauge cap has been implemented, and fresh for Beetswars 2.0, this cap is now in relation to the TVL of the pool.
- Gauge pools with a TVL of between $4k and $10K will be capped at 1% of the vote allocation (0.5% of the total farm emissions).
- Gauge pools with a TVL of between $10k and $20K will be capped at 2% of the vote allocation (1% of the total farm emissions).
- And gauge pools with a TVL of over $20K will have their vote allocation uncapped.
Protocol Placed Bounties
For ANY pool that generates more than 2% of the monthly protocol fees, the Beethoven X DAO will place bounties in the form of an FTM/USDC LP ERC-20 token and wFTM. Note that pools that are below 20k TVL will still be capped via the metrics above. You can find out more about this in the Bounties section below.
Creating Your Own Pool
Aspiring for complete flexibility, Beethoven X provides a streamlined and permissionless tool for creating new weighted pools. Pools can be created with up to 8 tokens in whatever weighting desired.
How to create a pool
- Go the the Beethoven X website, navigate to the ‘invest’ tab, then click on the ‘create a pool’ button.
- Choose the pool token composition and weightings.
- Choose the pools fees.
- To be eligible for a gauge, the pool owner must be the Beethoven X multisig
- Choose the pool name.
SECTION 2: Reliquary
So how exactly does one acquire governance voting power?! And… what are the benefits?
It comes down to a unique new primitive… The Reliquary.
An innovative and creative new playing field. Reliquary takes the BEETS ecosystem up a notch. With the technology seamlessly integrated into the backend, the front end is what makes it really POP. Participating in a futuristic new yield and voting distribution primitive has never been simpler, but let’s go under the hood and explain how it all fluently comes together.
There are 4 key areas to the Reliquary implementation.
- Fresh Beets Pool
- fBEETS
- Reliquary
- maBEETS
Fresh Beets Pool
Unlike other protocols that utilize single staking for protocol governance, Beethoven X incorporates a far more efficient mechanism. Harnessing the flexible Balancer tech stack, Beethoven X governance operates via an 80/20 BEETS/FTM weighted pool.
Why an 80/20 pool?
- Deeper liquidity — BEETS staked increase the liquidity of the token, rather than reducing it.
- Hedging and price appreciation relative to FTM.
- Efficient incentive program.
- Asymmetric upside potential.
This specific pool is known as Fresh Beets, with an underlying LP token called fBEETS.
fBEETS
Funkadilicallly fresh, fBEETS is the LP token of the Fresh Beets Pool. It is simply the receipt token of the Fresh Beets Pool.
Reliquary
Innovative, evolutionary, and promising. Harnessing the power of the Reliquary, users’ fBEETS tokens are activated once deposited into the Reliquary contract. The technology unlocks the positions underlying voting power and BEETS rewards and boosts them in relation to maturity (time). Users also receive a financial NFT that serves as a receipt token for the position.
maBEETS (Maturity Adjusted BEETS)
Magical, mystical, marvelous. maBEETS are an evolution and progression into the unknown. Users who deposit their fBEETS into the Reliquary unlock the ability to earn maturity-adjusted voting power and BEETS rewards. As a position matures, the underlying fBEETS are boosted into an increasing number of maBEETS relative to the maturity curve. The BEETS Relic is what tracks a user's evolving maBEETS position. The more maBEETS a user has, the more voting power they have!
For the ultimate Reliquary guide, hop into the article below:
SECTION 3: Voting
So… You’re up to date on how the gauge votes work, you’ve deposited into the fresh beets pool, staked those sweet sweet fBEETS, and now you’re marvelous maBEETS are burning a sizable (maturity adjusted) hole in your wallet.
It’s time to vote!
Snapshot
Voting is a simple procedure using the web3 voting platform Snapshot. The particular power that a vote carries is in the direct proportion of the total maBEETS voting power that the user has over the total maBEETS voting power that has voted in that gauge. Voting takes place over a three-day period, commencing on Thursdays in a bi-weekly cadence.
How to vote on snapshot
- Navigate to the Beethoven X Snapshot page during an open gauge vote (https://snapshot.org/#/beets.eth)
- Connect your web3 wallet that holds maBEETS. This is done using the ‘Connect wallet’ button in the top right hand corner of Snapshot.
- Select which pools you want to vote for and input the weightings.
- Confirm and sign the transaction in your wallet.
- You’re all done!
And remember votes can be changed all the way until voting closes. Gauge vote results are posted to Twitter in the following week or can be viewed directly on Snapshot.
Fun Fact: Did you know that Balancer Labs created Snapshot?
Bounties
But that’s not all.
For a DAO or protocol with a Liquidity Pool on the platform, there is a strong incentive to ensure that their specific pool receives ample incentives to grow token liquidity. One means to do so is via direct liquidity mining incentives on the DEX. Another, and often far more efficient means is to persuade maBEETS holders to vote for their pools and direct BEETS to the LP.
As such, Protocols/DAOs often offer gauge bounties for users to vote for pools hosting their tokens.
In simple terms, users are rewarded for voting for certain pools. Users who vote for protocols that have offered bounties can claim rewards from a third-party site.
Why do protocols offer bounties? The Gauge vote has unlocked a capital-efficient mechanism for protocols/DAOs to essentially incentivize their pools. With Gauge incentives historically yielding a positive ROI on $BEETS emissions/ $ bounty it makes sense from a capital efficiency perspective for DAOs/Protocols to do this. In fact, for the past 3 rounds, the ROI on bounties has been over 3x! This means a $1 bounty, would result in over $3 of BEETS incentives on the LP.
In addition to external protocols providing bounties to their pools, the Beethoven X DAO also provides bounties of its own. As part of the Beethoven X fee structure, 30% of protocol fees are converted to Beethoven Pool Tokens (BPTs) and placed as bounties. To further grow these bounties, Beethoven’s Fantom ecosystem gas monetization tokens and ecosystem vault tokens are used to provide additional BPTs.
The overall aim of this is to provide users with additional incentives to not only hold maBEETS, but partake in the voting system. This means that as a maBEETS holder, you can unlock swap fees from the underlying LP position, gain maturity-adjusted incentive rewards, generate maturity-adjusted voting power, and leverage external and protocol places bounties!
But how does one claim these bounties?
Hidden Hand
Hidden Hand is a gauge voting marketplace built by Redacted Finance. It’s a seamless voting marketplace used by some of the biggest players in the DeFi space including Balancer, Aura, and Frax. After a recent proposal to Redacted/Hidden Hand governance, Beethoven X has adopted the platform as its primary voting market.
BeethovenX Hidden Hand Marketplace
Hidden Hand incentive marketplace for BeethovenX
hiddenhand.finance
Why Hidden Hand?
We believe that introducing a Hidden Hand market is the final piece of the puzzle to supercharge gauge market participation with a seamless UI and UX experience. This encompasses not only our beloved Ludwigs but also external DAOs/protocols looking for an efficient and sustainable means to grow token liquidity.
Users can vote for pools through the Hidden Hand UI, as well as claim bounties once the vote has finished.
Music Director (MD) Delegation Service
With the move Hidden Hand it was decided that both Votehoven and its delegator service would be sunset. To make delegation available and to use use the following service has been set up via the MDs.
Here’s how it works:
- Users may delegate their maBEETS voting power to the MD gauge delegation wallet: 0x641e10Cd6132D3e3FA01bfd65d2e0afCf64b136A.
- Delegated voting power will be used to vote in gauge votes only — the delegation service wallet will not vote in other governance proposals.
- 80% of the voting power will be directed proportionally to bounties.
- The remaining 20% of voting power will be directed according to the MD’s discretion with the aim of serving the good of the protocol.
- Any and all bounties received for voting go to the wallet holding the maBEETS (the delegators), with these claimable through Hidden Hand.
Fore seamless interactions there is a frontend link on the maBEETS page that users can follow to delegate votes.
Beetswars
For all the data lovers out there, an external team of Ludwigs has put together a beetaliscous site that showcases all the stats and statistics you would need to know. You can even shift and merge relics via their Relic tool!
Outro
You are now the wielder of an unwavering force. True Beets knowledge is a power unlike no other. Use it wisely Lukewig. As you begin the illuminating journey navigating Beetswars 2.0, remember the wise words of your BEETS forefathers…
“May the Force BEETS with you.” — Obi-Wan Beetsobi
