Monthly, Quarterly and Half Year Performance Report

Dear Ludwigs, near and far

Today we bring to you our monthly showpiece, but this time we feature a few new verses. Once again, we ask you to come closer and gather around the conductor’s podium. It is time to review the monthly, second quarter and first half yearly financial performance for the month ending June.

This report aims to define the metrics of success for Beethoven X in a fun, simple and easy to understand manner as well as offer insight and transparency to you, our users. Based on the presentation given during the Monthly Community Town Hall this report is a way that users can stay up to date with the more quantitative aspects of the protocol.

This article will cover the following topics:

  • Highlights
  • Protocol Performance
  • Top Performing Pools
  • BEETS performance
  • Balances and Metrics
  • Governance

Highlights

June continued with the general market downtrend that we saw in May, this together with the insolvency of Celcius and Three Arrows Capital created an environment of challenging conditions. As a protocol, we continued building and here are some of the highlights:

  • Launched BeethovenX, powered by Balancer on Optimism
  • Monthly TVL outperformed our competitors
  • Over $2.9b in volume for the quarter, exceeded $7.2bn for the half year
  • Over $3m in swap fees for the quarter, exceeded $11m for the half year
  • $100k distributed to fBEETS holders during the quarter
  • Six governance proposals were passed in the quarter

The deployment of Optimism is a big milestone as it is our first venture into the multichain world. We are excited to show a wider audience everything we, the protocol and our community can offer.

Protocol Performance

Swap Volumes and Fees

This month saw a significant decline of activity across the Fantom network. This impacted both us and our competitors, some of whom are seeing daily volume numbers of only 10% compared to levels they achieved in April.

June also sees the first appearance of reporting numbers coming from Optimism.

In total the monthly numbers were:

  • Swap Volumes: $253m, an 80% decrease from May
  • Swap Fees: $480k, a 65% decrease from May.
Performance over the last six months, it also shows the split between the activity on Fantom vs Optimism

TVL Growth

The challenging market conditions we saw in June meant that digital assets who have a significant influence over the market, Fantom network TVL and BeethovenX TVL all saw large decreases in price, these were:

  • Bitcoin (38.5%)
  • Ethereum (45.6%) and
  • Fantom (38.7%)

The result was that our TVL was down 26% for the month.

This number outperformed all our competitors and the network, a feat we have been able to achieve in four of the last six months.

Monthly TVL growth vs competitors on the Fantom and the network as a whole

Second Quarter Summary

The second quarter was challenging with a number of events taking place at a macro level impacting either the entire industry or the Fantom network. While there were a few key events, two of the most notable were; the invasion into Ukraine and the collapse of Luna/ UST. The resulting impact is that over the quarter, Bitcoin (57%), Ethereum (68%) and Fantom (83%) were all down in value. This has an impact on our TVL, the USD value of Volume trade and the subsequent Swap fees earned.

Summary of our performance for the second quarter

Over the quarter BeethovenX saw $2.9bn in trade volume, which generated $3.2m of Swap Fees. Both these metrics are down from Q1 where Volume achieved was $4.3bn and $7.9m of Swap Fees. Representing a 33% and 60% decrease.

We also closed on 30 June with a TVL of $60m, down from the $370m balance at 31 March. This was an 84% decrease. This decrease is in line with what we have seen with the price of Fantom.

While the USD value of activity has been negatively impacted, we are very pleased to see that usage of the exchange has actually gone up. Over the quarter, we saw 2.7m Swaps booked on the exchange. This is a 31% increase from the 2m booked in Q1.

In a time period where there is a lot of uncertainty and decreasing activity on the Fantom network, increased adoption of the BeethovenX exchange creates a base to grow from as we navigate these uncertain times.

Summary of our performance comparing the first and second quarter.

Half Year Summary

While the second quarter was a challenging one, the first half of the year has been quite a successful one for BeethovenX.

In that time we have established ourselves as one of the leading DEXs and strengthened our bond with the community through initiatives like The Lotus Room and The Social-Science lab.

Bitcoin (57%), Ethereum (71%) and Fantom (89%) were all down over the first six months of the year.

One of a few factors that indicate the first six months of the year was quite strong for us compared to the market is that our TVL was only down $36m (37%)

At this stage there are no prior half year statistics to show a comparison for Volume, Swap Fess and Number of Trades. However, we do look forward to sharing this with you in December’s report.

Summary of our performance for the first half of the year.

Top Performing Pools

Top 10 performing pools on Fantom

The pools shown above account for 77% of the monthly fees earned on Fantom.

When taken in isolation, A Late Quartet brought in 34% of the swap fees for the protocol alone, other strong performers were Fantom of the Opera (12%) and My Beautiful Dark Twisted Decentralized Dollar (12%).

Top 5 performing pools on Optimism

The pools shown above account for >95% of the monthly fees earned on Optimism.

Happy Road contributed 60% of the fees earned and 35% of the volume for the month. The next biggest contributor was Lennon’s Long which brought in 18% of the fees and 30% of the volume.

BEETS Performance

The price of BEETs moved in line with the rest of the market. BEETs opened the month at $0.136, challenging market conditions saw it decrease to a low of $0.057 before there was a small recovery to close the month at $0.066

This price movement had a similar impact on our market cap and the graph below shows that June was difficult for the market in general.

Second Quarter Summary

If we look at the performance over the quarter we can see that the BEETs price and Market Cap performance was largely in line with that of our competitors on the network.

Fantom was down 83% over the quarter and the performance of BEETs, Boo and Spirit was largely in line with this.

Curve’s performance was largely aligned with that of Ethereum which was down 68% over the quarter.

In the end, the summary of the quarter is that for all four exchanges, price and market cap performance was aligned to the networks they were founded on

Half Year Summary

The price of Boo and Spirit moved in line with that of Fantom, the FTM price was down 89% for the six month period.

Ethereum was down 71% in that time and Curve’s performance was somewhat linked to that.

Our strong performance in Q1 meant that we outperformed these trends.

Balances and Metrics

The balances and metrics component of our reporting is still relatively new. At this stage we are only able to show monthly numbers.

Financial Metrics

At the moment we consider two financial metrics:

  • Revenue to Emissions Ratio and
  • Revenue to TVL Ratio.

Revenue to Emissions Ratio: takes the total swap fees divided by the total emissions directed to pools for that time period. This ratio looks to show the return generated per dollar of emissions.

Revenue to TVL Ratio: takes the annualized swap fee and divides it by the average TVL during the period. This ratio shows the dollar amount generated per dollar of TVL.

When comparing June to May, the drop in swap fees experienced this month negatively impacted the June ratios.

The high Revenue : Emissions ratio for stable pools was driven by the collapse of UST. My Dark Twisted Decentralized Dollar was the third highest fee earned in the month of June.

Swap Fee Flow

Below you can see a breakdown of how swap fees were generated and allocated as part of the monthly protocol fee distribution. It also includes a reconciliation of the Treasury Balance Sheet

The $7.6k held on Optimism relates to the fees that will be matched with $OP incentives in order to source BAL emissions.

Assets held by Treasury

The table below shows the Treasury balances at the end of the month.

In general, the negative changes were driven by the wider downturn in the market. The increase in Other relates to claimed LQDR that had not yet been locked.

The four largest holdings at the end of the month were

Protocol TVL

At the end of June TVL was split 41% in weighted pools, 33% in boosted pools and 26% in stable pools. Protocol owned liquidity was above 1% across all pool types.

Decreases in TVL across the various pool types was driven by both the wider market downturn and TVL that left the network

Governance

This quarter was another busy one for governance. Six proposals went up resulting in eight votes (Treasury Revenue was split into three separate votes). For the year, 17 proposals have been voted on.

In this quarter, all proposals that went to vote passed. The most significant ones were: Implementation of Locking and Managing Balancer on Optimism.

Another notable vote was the one relating to the Increase in Protocol Fee. This vote was important as it represents the first proposal that was not only suggested, but also managed by the community, a significant step for the DAO.

We are humbled by both the community’s passion and participation in governance matters

Closing

June was a challenging month but we are excited to see that exchange usage is on the rise and we are live on Optimism.

We are proud to have been able to share with you the results of the month, the second quarter and our first ever half year review. The journey continues on this path of providing consistent and reliable financial information.

Until next month,

Thank you from all of us at Beethoven X

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.

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