BeethovenX

Proposal

This proposal asks the DAO to approve payment of 41,062 USDC from the Beets DAO Treasury to cover its share of the cost of auditing loopS, a new tokenized looping strategy around the stS/S loop on Aave. The total audit cost is 59,062 USDC. Of this, 18,000 USDC is being covered by Sonic Labs, leaving 41,062 USDC to be funded by the Beets DAO Treasury. Contributors have already advanced these funds upfront to secure the audit with Spearbit, one of the leading smart contract audit firms. This BIP therefore seeks retroactive reimbursement from the DAO Treasury.

Motivation

loopS packages the recursive stS/S strategy on Aave into a fungible token, making leveraged yield strategies more accessible to the wider Sonic community. The product is designed to:

• Broaden participation by simplifying access to complex strategies.
• Generate protocol fee flows and potential treasury growth.
• Reinforce Beets as a core builder of innovative DeFi products on Sonic.

The security of the smart contract is critical. An external audit by Spearbit ensures that the product launches safely, reduces smart contract risk, and builds trust among users and partners. Spearbit has been chosen due to their strong track record with sophisticated DeFi systems and their prior audit work relevant to the Sonic ecosystem.

Impacts / Risk Assessment

• DAO Treasury: One-time retroactive expense of 41,062 USDC.
• Audit Cost Split: Of the total 59,062 USDC cost, Sonic Labs is covering 18,000 USDC, reducing the DAO’s burden.
• Risk Mitigation: Spearbit’s audit significantly reduces the chance of vulnerabilities and strengthens loopS’ security profile.
• **Contributor Reimbursement: **Contributors already paid upfront to secure Spearbit’s availability; DAO approval ensures treasury resources, not individuals, cover this shared protocol cost.
• Ecosystem Impact: A secure loopS launch enhances Sonic’s DeFi landscape, increases user confidence, and expands Beets’ product suite.

Specification / Execution Plan

If approved:

• Beets DAO Treasury will reimburse contributors 41,062 USDC for the audit payment made upfront.
• The audit, already in progress with Spearbit, will be finalized before loopS deployment.
• Results of the audit will be published to the community for transparency.