BeethovenX

Introduction

In October of last year we launched our second coming on earth using Balancer technology on Fantom.

With that we launched the first official Balancer friendly fork and since then we have been actively working on pushing the capabilities of the technology to its full extent. All of these efforts have not gone unnoticed, in this time it has strengthened the relationship we have with Balancer.

The relationship is now potentially expanding and with the prospect of Optimism launching its token and kicking off what could be an explosive summer of growth. An opportunity has once again presented itself to push the boundaries of what we can do, but this time as part of something bigger.

Proposal

We propose that BeethovenX takes charge of an official Balancer deployment on Optimism. This will include contract deployment, front end, infrastructure, branding, marketing, communications and ongoing maintenance as required. Balancer will on their end activate gauge votes to Optimism, liquidity mining will be in the form of BAL and not BEETS.

Not only this would help Balancer expand their ecosystem on a promising layer 2 scaling solution of ethereum. It will also bring about a stronger bond between us and Balancer. A partnership between the two of us, we will be seen as a protocol that is working together with one of the original DEFI bluechip protocols.

Motivation

In order to bootstrap adoption and secure the position as a leading Optimism dex, we request an initial allocation of up to 3M $BEETS from the treasury. This will be used over the course of six months in order to provide incentives to veBAL voters to direct BAL emissions to the Optimism pools.

Any farming by either protocol’s treasury on Optimism is acceptable with the condition that earned BAL rewards are either locked in veBAL or held on the balance sheet. No farming and dumping.

The Balancer optimism governance multisig would have five members, three Balancer community members and two from BeethovenX.

Balancer has their protocol fee set at 50%, this is what will be used on Optimism. The fee will be shared 50/50 between Balancer and BeethovenX. The BeethovenX part of the protocol fee income will be distributed under the same rule as the protocol revenue of BeethovenX. As a reminder that is:

• 50% to the DAO treasury
• 30% to fBEETS holders
• 18% to the team
• 2% to the Beethoven X-fund

What this means is, if we had to replicate the exact same circumstances on Optimism, as we have here on Fantom, only 60% of the current volume is required to achieve the same revenue to $fBEETS holders.

Summary We emphasize that this is a Balancer deployment on Optimism, operated and managed by the BeethovenX team. BeethovenX has no intention of leaving Fantom - all of our usual emissions are kept on Fantom. This is a unique opportunity for BeethovenX and fBEETS holders to expand to Optimism, and by acting early we can secure a large share, hopefully the majority share, of the dex market there. If it succeeds, this would be a huge win for both protocols.

In total, it will be up to approximately 3m $BEETS used in the process over the span of six months. For context, the treasury currently holds 9.4m $BEETS. While this is a sizeable portion of the $BEETS held, in return we would get:

• Close integration with the Balancer ecosystem
• An additional revenue stream for all Beethoven stakeholders
• Huge upside potential from layer 2 scaling of Ethereum
• BAL through Treasury farming

Specification

To approve the optimism launch and authorisation to use up to 3m $BEETS for voting incentives to veBAL holders If the proposal passes, both on our and Balancer’s governance, the BeethovenX team will begin working on Balancer Optimism deployment as soon as possible.