Symphony of the Week with The Vaults of The Lonely Mountain

Dear Friends and Fellow Ludwigs,

Welcome to the Symphony of the Week!

This week we are listening to a symphony coming from the pool “Vaults of the Lonely Mountain”. We will learn about the melody, the performance and offer insights through comparison.

Disclaimer:
At Beethoven we like to enjoy all kinds of music, 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

About the Melody

Already a classic even though it is remarkably young. Like a piece by Gimli son of Gloin, old and wise, young and strong, this pool is one of those pieces that was designed so that you can just sit back and enjoy the music. The players in the orchestra are 80% RING and 20% USDC.

Read up on Weighted Pools here.

Performance

In just its second week, BPT — Ring saw significant growth with liquidity going up by almost 200% over the 7 day period, 6th — 12th of February.

The increase was driven by the activation of BEETs farm rewards for the pool. From the 9th onwards, BPT — Ring received dual farm incentives in both RING and BEETs.

The impact of this was that APRs skyrocketed to over 600%. From here the pool maintained a return of over 1% per day (excl. compounding).

Fortissimo APRs (Week from Sunday to Sunday)

Comparison

This week was a very good week for the Ring token itself, during this time it’s price appreciated by 67%.

This was also seen in the The Vaults of the Lonely Mountain, where the BPT price went up by 66% (this increase excludes any liquidity incentives).

If at the start of the week a user put $10k into The Vaults of the Lonely Mountain vs HOLDing, the user would be better off by almost 7%. The liquidity incentives made up for any impermanent loss suffered.

In addition, if a user had invested that $10k into a 50:50 pool for this week, the user would have earned 30% less compared to the 80:20 Weighted Pool — The Vaults of the Lonely Mountain.

Not Financial Advice

This feauture should under no curcumstances 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.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store