In this guide we will explain how to provide liquidity to Beethoven X pools on the Fantom network to earn swap fees and yield farming rewards.
What is Fantom?
Fantom is a high-performance, scalable, and secure smart-contract platform. It is designed to overcome the limitations of previous generation blockchain platforms. Fantom is permissionless, decentralized, and open-source. It uses a novel aBFT consensus mechanism called Lachesis which allows Fantom to be much faster and cheaper than older technologies, yet extremely secure.
What is Beethoven X?
Beethoven X leverages advanced DeFi protocols to offer novel decentralized investment strategies. Built on Balancer V2, it is the first next-generation AMM protocol on Fantom. With automatically rebalancing investment pools, they turn the concept of an index fund on its head: instead of paying fees to portfolio managers to rebalance your portfolio, you collect fees from traders, who rebalance your portfolio by following arbitrage opportunities.
What you will need to provide liquidity on Beethoven X on Fantom
- Metamask wallet
- FTM tokens in your Fantom wallet for gas
- Supported tokens to provide as liquidity on Beethoven X
Setting up the Fantom network with your Metamask wallet
Much like with the Polygon network, you can use Metamask to interact with Fantom. There is a web wallet you can use to monitor your balances. It was created as a Progressive Web App (PWA) to make it easier to launch on all major platforms.
To configure your MetaMask to have the ability to access the Fantom network you need to click the icon in the top right corner and select “Settings”. Once there, find the tab labelled “Networks” and when you arrive there you should see a button to “Add Network” where you can input the settings below:
Here is the list of the parameters so you can easily copy them:
- Network Name: Fantom Opera
- New RPC URL: https://rpc.ftm.tools/
- Chain ID: 250
- Currency symbol: FTM
- Block explorer URL: https://ftmscan.com
This process adds the Fantom network to the list of available networks you can switch to from within Metamask. Sometimes it is helpful to switch networks when Metamask is acting strange or if you are having trouble getting things to show up.
Move funds from ETH or Polygon/Matic networks to the Fantom chain
Key takeaway: Moving stablecoins to Fantom is cheap and easy, moving FTM is a bit more difficult. You can get a small amount of FTM if you have none from an FTM faucet.
A website called Fantom Community Alerts has set up a faucet to distribute FTM tokens to new users of the platform so they have enough FTM to make their first trade. You can find it in the section of their page with the label “FTM Faucet”. This is helpful if you are only using the stablecoin bridge mentioned below and have no FTM in your wallet to make the first transaction.
To move funds from ETH mainnet to the Fantom network, you must first own some FTM tokens on Ethereum, you can purchase them on Uniswap or Sushiswap. You can then use a service called Multichain.xyz to swap the FTM to the Fantom chain by selecting FTM (ETH) and FTM (Fantom) in the interface and performing the swap. Be aware that this method has Minimum and maximum amounts for swap sizes and fees. The minimum fee is 80 FTM so be sure that you are swapping enough tokens to make it worth the 80 FTM.
Using a service called xPollinate (which is powered by Connext and 1Hive) you can easily move stablecoins like DAI, USDT and USDC from the Matic chain to the Fantom chain. They currently support moving stablecoin funds back and forth between xDAI, Polygon, Fantom and Binance Smart Chain. This service is dependent on the availability of exit liquidity for each of the chains, which they display below the main swap interface. At the time of writing, there was plenty of exit liquidity for most of the chains except Polygon/Matic.
Finding the right pool to provide liquidity on Beethoven X
You can add liquidity to any token pair trading on Beethoven X, but most users choose to provide liquidity to the pairs that currently offer farming rewards. You can browse these pairs on the “Invest/Farm” tab of the Beethoven X app to compare the various APR % offered via BEETS token rewards. ONe of the interesting features of Beethoven X is the multi-asset pools which they have given fun names to, like “Fantom of the Opera” for the USDC/FTM pool. Beethoven operates in a similar banner to Balancer so there are different types of pools with multiple assets. You will find stable pools for assets that don’t fluctuate much in value as well as weighted investment pools that can contain up to 8 different tokens.
Steps to add liquidity to Beethoven X
Note: If you have not previously interacted with a token you may have to do an “Approve” transaction before any of the steps listed in this process.
In order to invest in one of the pools featured you will need to have at least one of the tokens from the pool in your wallet. In this example we will use USDC to deposit into the pool using the “Invest” button on the page for the farm. You do not need to have the proportional amount of tokens for the pool (in this case 30% USDC and 70% wFTM) but if you want to there is a tool that will calculate the exact proportions for deposit. It is possible to just deposit all of one asset or the other and they will be swapped automatically when entering the pool to match the pool’s proportions.
Once you hit the “Invest” button you will be shown the screen below where you can input the amount you would like to deposit.
Once you have entered the amount you would like to deposit, hit the “Preview” button and you will be shown the confirmation screen below.
Hit the “Invest” button and your tokens will be deposited and exchanged for BPT tokens which represent your share in the liquidity pool.
Stake your BPT tokens to start earning BEETS rewards
Once you have your BPT tokens you can then use them to stake and earn BEETS rewards. You can see in the picture above the “Deposit BPT” button, hit that button and confirm the transaction to start earning your farming rewards.
ONce you have staked your BPT tokens you can manage them from the same screen in the “Farm” section. There is a “Harvest” button that will collect your BEETS and deposit them into your wallet. Happy Farming!
Track Your Position With APY.vision
First time APY.vision users – enter your Fantom address in the box highlighted above. On mobile/tablets click on the search icon and copy their address into the popup
Once your liquidity position is deposited on Beethoven X, you can start tracking the performance of the vault. You can see in the picture below that APY.vision will track the shift in the token balances in the pool. For more details on a given position you can click the “View Details” button to get even more analytics and information about your position.
Coming soon: The ability to track farming rewards!
How to withdraw liquidity and what to expect
When you are ready to pull your liquidity from the farm, you must first hit the “Withdraw BPT” button pictured above and the dialog box below will pop up to unstake it. This action will harvest your BEETS rewards at the same time it unstakes the LP token from the staking contract.
After you have unstaked your BPT tokens, you will be given the option to “Withdraw” from the liquidity pool as pictured above.
After you hit the “Withdraw” button from the previous step you will be shown this screen above that gives the details of the transaction. Hit “Preview” to get to the next step.
After hitting “Preview” in the previous step, you will be presented with the screen above that allows you to withdraw from the liquidity pool. Once you hit the “Withdraw” button the tokens from the pool will be deposited back into your wallets in the amounts stated above.
After performing the transaction you will get the confirmation screen pictured above that shares the details of the transaction. After this step the process is complete!
Providing liquidity is a great way to earn some income on tokens sitting in your wallet. You do have to be careful when providing liquidity, as sharp price increases or decreases can have a huge impact on the performance of your position. To read more about the risks, we highly recommend reading this post. We suggest using APY.Vision to keep a close eye on your positions to know when to remove liquidity during times of extreme price volatility.
APY.Vision does not give investment advice and always insists that you do your own research. Read our full Legal Disclaimer.
Check out APY.Vision!
APY.Vision is an advanced analytics tool for liquidity pool providers and yield farmers. If you’re using any DEXs, AMMs, or liquidity pools this is the tool you will need to easily track the ROI of your liquidity provider and yield farming activities. Try it now!