January 2023 — Monthly Performance Report
This past year has been a mystical, marvellous, maddening, memorable mirage of moments. And damn, it sure has whizzed by.
Some of us are still catching our breath from 2022. It’s been a full year of financial reporting and we have come a long way.
In that time we have covered quarterly, half-yearly and annual reports. If you would like a trip down memory lane, our first-ever report can be found here.
Beautiful memories, and magical moments, but now it’s time to get back to business.
This report aims to outline the metrics of success for Beethoven X in a simple, and easy-to-understand manner, as well as offer insight and transparency into the protocol’s financial performance.
It offers users the ability to keep up to date with the quantitative aspects of the protocol and covers the month of January 2023.
In this report we will cover the following topics:
- Highlights
- Protocol Performance
- Top Performing Pools
- BEETS performance
- Treasury
Highlights
The month of January brought about some relief. The year started with positive growth across the board. From a protocol perspective, this macro sentiment aided growth in two key areas: Protocol fees exceeded $70k and the DAO’s treasury balance grew by more than 50%.
Protocol Performance
Total Value Locked (TVL)
Across most DeFi protocols, changes in prices of Bitcoin, Ethereum and host network tokens are the main drivers in TVL fluctuations.
This is because these host tokens tend to dictate the prices of other tokens deposited into the protocol. Changes for the month were:
Across both networks, the protocol saw positive TVL growth.
Protocol performance on Fantom exceeded that of both competitors and the network itself, resulting in the protocol obtaining a higher market share of the network TVL.
While Optimism experienced positive TVL growth for the month, protocol metrics were impacted due to the January 6th vulnerability disclosure and the redeployment of new pools.
You can read more about the vulnerability disclosure here:
And you can read more about how we managed the changes here.
If we take a closer look at TVL balances, they can be split into three main categories
- Weighted pools: Multitoken pools that can take up to 8 tokens of varying weights
- Stable pools: Liquidity pools that consist of either pegged or highly correlated assets
- Yield Bearing pools: Liquidity pools that contain tokens that generate both swap and yield fees for the protocol
The table below illustrates the change in TVL month-on-month per category.
Volumes and Fees
Month on month, the protocol achieved an 89% increase in volume on Fantom and a 190% increase in fees on the network.
On Optimism, the protocol achieved a 24% increase in volume, a 139% increase in swap fees and an 80% decrease in yield fees.
Again, this reduction in yield fees was due to the vulnerability disclosure - to mitigate the risk, protocol fees for those pool types were turned off.
Fee Distribution
During the month total fee inflows amounted to $231k. This was driven by $187k in swap fees from Fantom, as well as $19k Optimism swap fees and positive market movements of 17k. Comparing January to December, there was an increase in total inflows by 50%.
Outflows for the month totalled $163k with the vast majority flowing to Liquidity Providers totalling $158k.
Comparing January to December, there was an increase in total outflows by 44%
The impact of the monthly growth in fees meant that in January both the DAO’s treasury and gauge bounties saw a 63% increase compared to December.
Top Performing Pools
At Beethoven X, Liquidity Providers have the ability to design their own customised and personalised pools. In addition, the adaptable and dynamic fee functionality allows free reign to try and ensure pool’s function optimally.
Top performing pools on Fantom
These 10 liquidity pools accounted for 80.12% of the fees earned on the network.
A Late Quartet (FTM — ETH — BTC — USDC 25% each) and Fantom of the Opera (FTM 70% — USDC 30%) continue to be the best performing pools contributing 63.14% between them.
Top performing pools on Optimism
Enter the Stargate (STG — USDC 50% each) was the biggest contributor for the month, 20% of total network fees.
Happy Road (ETH 40% — OP 40% — USDC 20%) was next in terms of contribution, bringing 17% of the fees and Lido Shuffle (interest bearing (ib) wETH/ wstETH) was the last significant contributor, bringing in 13% of the fees.
In total these three pools combined brought in 50% of the fees on Optimism
BEETS Performance
The price and market cap of digital assets are often linked to the general performance of Bitcoin and/or the movement of their native network tokens. Over the month Bitcoin, Ethereum, and Fantom all experienced an increase in price.
BEETS opened the month at $0.038 and experienced positive growth throughout the month. It closed at $0.074
While all projects saw positive growth, BEETS outperformed both the FTM and ETH native projects.
Treasury
For the month of January, the fair value changes in token prices were the main driver behind the growth in treasury balances.
Please note: The reconciliation above excludes the fees earned for the month of January. This amounted to $48k to the treasury and $21k for reward distribution. This has been excluded as the transfer of funds to the treasury only took place in February and will be included in next month’s report
The table below shows a breakdown of treasury assets and the network they are held.
Below are the top 5 balances, they make up 80% of total holdings
You can follow the treasury balances here:
Closing
The year started on a really positive note. Key metrics were up from December and, at the time of writing, have continued that trend into February.
February will also give us an opportunity to assess the impact of the recent changes applied to the gauge system.
A lot to look forward to!
Until then,
Thank you!
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.
