Symphony of the Week: Happy Road

Dear Friends and Fellow Ludwigs,

This week, our symphony heads out on a roadtrip to play in Optimism city. Our debut in this new auditorium sees us feature the local star, a young prodigy making waves in the industry. Together with its mentor it takes center stage, while an old friend provides the snare. The symphony is: Happy Road on Optimism

Sit back, relax and let the music lead the way.

Disclaimer:

At Beethoven X we like to enjoy all kinds of music, rock, jazz, classical, trip hop, each symphony is unique in its design. So while we may applaud the show, it doesn’t mean we think you should buy a ticket

Performance

Trade volume began the week with $160K (June 18) and steadily grew over to 198k over the next two days. Volumes then declined to a low for the week of 59k (June 22) before significantly increasing to peak at 457k (June 24).

TVL started at $1.4m and saw steady growth over the seven day period. The largest two daily increases were $360K (25.6%) on June 20 and $206k (10.9%) on June 24. TVL closed the week at $2.1m

Rewards

Swap Fee APR followed a similar pattern to that of volumes with a low for the week of 5.86% (June 22) and the high of 41.35% (June 24). The average over the week was 20%.

In addition to swap fees, Happy Road also received liquidity mining incentives. The beauty of the partnership between Beethoven and Balancer meant that for six days, rewards were earned in BEETS and on the final day in BAL*. Reward APR stayed consistently above 40% during the week and reached a high of 51.8% (June 19)

*For the seven day period starting 25 June Happy Road receives BAL rewards

Comparison

During the week, Happy Road ranked in first for volume for all pools on Optimism. The daily utilization rate was regularly above 10% and peaked 22.7% (June 24).

If we consider the cost of rewards allocated to the pool we can see that for most days, each $1 of rewards spent generated >$0.40 is swap fees. The low for the week was $0.14 (June 22) while the high was $0.95 (June 24). Happy Road has a dynamic swap fee, which means that as a protocol we have an additional tool to use to make this pool attractive to both liquidity providers and traders.

Over the period, OP moved by 14.28% and ETH by 13.01%, this meant that for this time Happy Road incurred and impermanent loss of 0.13%

The multi token pools that balancer tech offers allows users the flexibility to create custom made liquidity pools based on the relevant digital asset exposure they want.

If a user entered into a traditional 50:50 liquidity pool, the impairment loss incurred would have been:

  • ETH: USDC — 0.19%
  • OP: USDC — 0.22%
  • OP: ETH — less than 0.01%

Conclusion

This week saw the debut of one of our first symphonies on Optimism. Using the tools available we were able to celebrate a unique pool that exists no where else. Tune in next time to see what else is playing!

Not Financial Advice
This feature should under no circumstances be considered financial advice. Each Beethoven X pool is unique and carries the risks of all the underlying digital assets. Featuring on the Symphony of the Week is only a review of past performance. It doesn’t not represent an endorsement of any of the protocols or their digital assets. Beethoven X users should only invest according to their individual risk limits.

Remember that a liquidity pool is only as good as its weakest token. If a token were blacklisted, infinitely minted, frozen, or exploited in any other way, the value of a pool could go to 0. Beethoven X is never liable for losses incurred through using our UI or the Beethoven X protocol. Be careful, and do your own research.

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