Ludwigs, near and far
Come gather closer, gather in around the conductors podium, put down your instruments, and listen carefully. It’s time to dive into the results for March and do an overview of the first quarter.
The 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 AMA 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
- TVL Growt
- BEETS performance
- Treasury Update
- Governance
Let’s dive straight in.
Highlights
The first quarter of the year was an exciting but busy one for Beethoven X, things that stood out were:
- Exceeded $1.3bn in Volume per month throughout the quarter
- Exceeded $2m in Sweps Fees per month throughout the quarter
- TVL growth was faster than competitors and the network
- Protocol Owned Liquidity crossed $2m
- $300k distributed to fBEETS holders during the quarter
- 11 Governance proposals went to vote in the quarter
Protocol Performance
The month of March proved to be a challenging one, not only for Beethoven X but for the network as a whole.
Quite early in the month announcements made from high profile individuals had an impact on the network. While nothing changed regarding technology and operations, the general market sentiment towards Fantom and its protocols was impacted in a negative way.
We closed the month with a TVL of $370m, over the month this was down by $15.7m. Volume for the month was $1.3bn and fees generated was $2.2m.
In the graphic below you can see that even though March has produced the lowest numbers for 2022, they are still significantly better than any of the results from last year.
In previous months we spoke about maintaining the high level achieved in January and we continue to work towards that. The goal is to make January the benchmark, not the outlier.
We continue to work on having the right combinations for our pool designs that makes trading beneficial to both traders and liquidity providers.
If we look at the quarter as a whole, the underlying message was one of growth across TVL, Volume and Swap Fees.
The graphic below sets out how significant these growth numbers are.
Together with growth, we are also seeing adoption. At the time of writing, Beethoven X has crossed the $6bn mark in total volume and $11m in total swap fees.
TVL growth
In the section above we covered that TVL was down for the month ($15.7m) but up for the quarter ($274m). By using data available of DeFiLlama we have done some benchmarking of our growth against that of our competitors on the network and network itself.
The graphic below shows growth percentage each month based on the prior month closing TVL balances.
While January and February were strong in terms of growth, we can see that while March was challenging for us, the performance was better than the rest of the network. All protocols were down in the month: Curve 6%, Spookyswap 7%, Spiritswap 24% and the FTM network 41%.
$BEETS Performance
The challenging market conditions did have an adverse impact on the price of BEETS . We opened the month at $1.27 and went to a low of $0.49, but then had a strong finish closing the month at $0.73.
This price movement had a similar impact on our market cap, the below shows how difficult March was. Over the month the price of $BEETS decreased by 43% with the market cap decreased by 36%. Both Spookyswap and Spiritswap experienced similar results for the month. Curve was the only one to have a positive month, they are the only non Fantom native protocol.
While March was challenging, it doesn’t take away from what was a really strong quarter. In this period we saw price growth of over 270% and market cap growth of over 500%. These results were significantly stronger than the other three.
Treasury Update
For this month we split the treasury into three pillars:
- Protocol fees
- Treasury Balances
- Nature of Treasury balances (how diversified the treasury assets are, and what are they)
Based on these three pillars, the treasury and $fBEETS holders have benefitted fitted from Beethoven X’s strong performance this quarter.
For the period protocol fees amounted to just over $1m, resulting in $0.5m going to treasury and $0.3m going to $fBEETS holders. This distribution to $fBEETS holders resulted in $222k worth of $BEETS bought back on the open market.
The table below illustrates how protocol fees have been put to use for March and the quarter
At the end of March the treasury held around $10m in digital assets.
This is split between Digital Assets (80%) and Protocol Owned Liquidity (20%).
The underlying asset split is predominantly made up of $BEETS ($6.7m), USDC ($1m), A Later Quartet BPT ($0.8m) and A Late Quartet, Yearn Boosted BPT ($0.6m).
Governance
This quarter has seen governance receive exceptional levels of engagement from the community. Eleven proposals went up for vote, with ten passing and one being rejected. This excludes the votes opened up for gauge allocations and the treasury investment.
Below is a summary of the proposals that were raised, the one that was rejected related to the vote in March to join 0xDAO.
Closing
March brought about fresh challenges to which the Beethoven X responded by outperforming competitors on most metrics. The first quarter itself was one of really strong growth and we aim to continue building on this momentum.
A final thanks to all those who joined for the AMA, we appreciate your attendance and are grateful for the comments received. We will work to incorporate these suggestions for next month.
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.
