Beethoven Very Profitable With Bribes (Fantom Chain)

When we farm in pools more often than not we are earning a protocol's native token. That token has almost no intrinsic value. What do I mean by that? Lets look at an example.

Over on Pangolin, Avax protocol, users can farm in the pools and earn PNG tokens that are native to Pangolin. The pool yield interests are sweet but they are in the from of mostly PNG tokens.

So for investors who farm in these pools they often will sell the PNG token and in return get some coins that they truly want to hold. What this does is PNG price gets trashed.

Chart above is over a three month long of PNG price. It is clearly in a down trend as PNG is currently around $0.29 per token. So even though investors are farming in the pools their yield if held would most likely be at a loss making the % yield fall. Not ideal at all for farming. However not all pools on every protocol is the same.

Beethoven's Beets

Over on Beethoven its native token is Beets. Since the protocol's inception to date the value of Beets has astonishingly held up well in price. There is a good reason for such a evaluation. Two key reasons here for Beethoven and we will discuss both of them.

First reason essentially the APR % for the pools are very high compare to other pools. Therefore Beethoven attracts a lot of investors to their pools.

All the pools earn both yield in native token Beets and trading fees. The total APR ranges from high two digit percentage all the way up to over 500%. In total Beethoven currently has over $300 million in TVL.

The second reason why the protocol's native token Beets is doing well is because of bribes. For those who do not know bribes are where individuals or entities who wishes to have a specific pool increase in TVL by providing rewards for participants. Let us look specifically at an example.

Holders of Beet token has the opportunity to vote on support a specific pool in Beethoven. The more votes a pool has the more rewards in Beets are yield in them. This in turn lures more investors to farm the pool making higher TVL in the pool.

This is known as a farm war between pools for pulling in more TVL. In similar way there are Curve wars but over on Fantom we have Beets wars. Multiple protocols will have bribes to lure in more TVL and overall this benefits the investors too as it stands they earn pool yields and bribes.

Example of Bribe in Action

Chart above is the Vaults of The Lonely Mountain and in this pool the past couple of weeks a lot more liquidity has been staked. This is because there were not only high yield in participation but also bribes.

OneRing specifically provided additional rewards that are bribes to the pool participants in the specific time of vesting. In return investors earned portion of those bribes based on their proportion of assets over the entire pool invested.

Conclusions

So imagine investing in Beethoven we can earn % yield of Beets for farming pools and earn bribes for specific pools. Oh one other element of earning on the platform is that if users staked their Beets rewards they can earn even more Beets.

So lets summarize this opportunity so that one can visualize how profitable it really is. First we invest in the liquidity pool to earn % yield in Beet tokens. Then we earn bribes just for being in the pool at a specific time. Of course in order to win in the bribes we need to remember to use our voting power of our Beets holdings to vote for pools that we want to earn the most yields. On top of all that the rewards earned in Beets can be staked to earn more. So we have 3 components to earn on the platform for simply farming in Beethoven's pools. Ain't that something?

None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!