Another month has come and gone and with festivities in the air it’s time to recap the performance of November.
This report aims to outline 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 offers users the ability to keep up to date with the more quantitative aspects of the protocol.
In this report we will cover the following topics:
- Highlights
- Protocol Performance
- Top Performing Pools
- BEETS performance
- Balances and Metrics
Highlights
November was another month dominated by significant macro level events. The headline act was undoubtedly the collapse of FTX, an event that has brought around far more questions than answers.
It wasn’t only bad news though, FTM itself had a very positive month for network news. The foundation and Andre released a series of articles that brought terrific insights into the foundation and the network’s future.
For us we also had some amazing highlights to celebrate:
- Highest Volumes since July
- Highest Fees since July
- Governance approval for the formation of the Beethoven X non-profit LLC
Protocol Performance
TVL Growth
For the month of November, the key price changes that impacted our TVL were:
- Bitcoin depreciated (16%)
- Ethereum depreciated (17%)
- Fantom appreciated (3%)
- Optimism depreciated (3%)
Fantom
Even though the token price for FTM was up, there was still an overall 12% decrease in network TVL. That change in TVL for both us (-14%) and Spookyswap (-9%) was largely inline with the overall network change, whereas Curve (-32%) and Spiritswap (-42%) saw a decrease of more than double that.
Optimism
The network saw a 47% change in monthly TVL, a significant change from October close. Our own TVL performance (-12%) was stronger relative to competitors on the network. Curve was the only only comparative AMM that had a positive TVL growth for the month.
Swap Volumes and Fees
The collapse of FTX brought a significant amount of volatility into the market.
At the time of our October Townhall held on 10 November key digital assets were significantly down: BTC (-18%), ETH (-25%), FTM (-18%) and OP (-13%).
From then until the end of the month there was a recovery across all four of these, with FTM seeing the most significant recovery.
The renewed interest in FTM brought about an increase of activity on the network which further aided volumes and fees.
*The fees below only detail those from swaps.
Excluded from the table above was the fees generated on yield bearing tokens which totalled approximately $19k.
Grant Incentive update
As a recap, the terms of the grant is that $OP will only be spent if it can be matched. Since September this matching is being done with protocol fees earned on the network, $OP is bought off the open market and paired with the grant before distribution.
In some instances, partner protocols match this with their own $OP grant and the results for November were very successful.
Over the course of the month, we have spent a net of 9,867 $OP.
Here is a summary of how we have been doing:
Top Performing Pools
Top performing pools on Fantom
A Late Quartet (FTM/ ETH/ BTC/ USDC at 25% each) continues to be our highest fee earner, with Fantom of the Opera (FTM 70/ 30 USDC) coming in second. These two pools accounted for just over 56% of the fees for the month.
Top performing pools on Optimism
For the first time this month we have developed* a way to present both the swap and yield fees earned on pools.
Lido Shuffle (interest bearing (ib) wETH/ wstETH) brought in 35% of the fees for November, followed by Steady Beets, Boosted (ib USDC/ ib DAI/ ib USDT) and Rocket Fuel (rETH/ wETH) which both contributed 11%.
In total these three pools combined brought in 56% of the fees on Optimism.
*If you are interested in finding out more on the methodology applied please reach out over Twitter or Discord
BEETS Performance
BEETs opened the month at $0.038 and dropped to a low of $0.023 before recovering to close the month at $0.037
FTM itself was up 3% for the month, and the trend can be seen in both Boo and Spirit.
ETH was down 17% for the month, driving the performance of both Curve and Uniswap.
Balances and Metrics
Financial Metrics
Swap Fee and Treasury Reconciliation
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 swap fees allocated to gauge bounties resulted in 283k $BEETs being bought off the open market.
Please note, Balancer have elected to make their portion ($11.8k) of the Optimism fees available for liquidity mining incentives. It is included in the total of $17.6k detailed in the table above.
Assets held by Treasury
The table below shows the Treasury balances at the end of the month.
The decrease in month-on-month balances was primarily driven by mark to market changes in the underlying assets.
Below are the top 5 balances, they make up 80% of total holdings
You can follow the treasury balances here:
FTM — https://debank.com/profile/0xa1e849b1d6c2fd31c63eef7822e9e0632411ada7
OP — https://debank.com/profile/0x2a185c8a3c63d7bfe63ad5d950244ffe9d0a4b60
ETH — https://debank.com/profile/0xea06e1b4259730724885a39ce3ca670efb020e26
Protocol TVL
The table and graphic below shows how the TVL is allocated on the two networks. Bulk of the Optimism TVL is located in interest bearing pools which generate additional revenue for both liquidity providers and the protocol.
Closing
How time flies, it’s been a month since FTX collapsed and Sam is still trying to “figure it all out”.
It’s in these moments that we are immensely proud to be able to say that we consistently produce financial reports.
Sometimes the results aren’t what we all want, but in a year of challenging events and that has proven (repeatedly) that the number doesn’t always go up we appreciate that you take the time to read these reports.
So thank you for allowing us the opportunity to share the previous and November performance with us.
We hope you have a happy holidays and we look forward to next month where we aim to bring you our first ever year end report.
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.
