Unparalleled efficiency. Composable. A pool built for all.
A MetaStable pool is the most efficient pool type for two highly correlated tokens. Instead of containing two pegged assets like a stable pool, the pool includes two tokens that are closely related. Often, this incorporates a base token and a staked derivative such as ETH and stETH, but it can also include any token integrated into a yield-generating market. Unlike a typical stable pool, MetaStable pools host a unique and innovative feature set that ensures investors and traders unlock the full power of Interest-Bearing assets.
Building off of the stable math made popular by Stable pools, MetaStable pools are uniquely positioned as the most efficient pool type for Interest-Bearing assets due to one pivotal function; the Rate Provider. This Rate Provider is a specific contract that accounts for the slow appreciation in the value of Interest Bearing (IB) tokens. In a typical stable pool without a rate provider, the pool contract ignores the daily increase in the ratio between the base and IB asset.
What does this mean? In almost every other Liquidy pool with interest-bearing assets, the two tokens trade at 1:1.This imprecision of other pools negatively impacts all LP providers. Instead, arbitrage traders are the ones who benefit via the incorrect ratio and price discrepancy. Simply put, liquidity providers lose out on the yield generated by these tokens, as it is leeched out due to the activity of arbitrage traders.
Beethoven X navigates this problem by integrating a rate provider contract that constantly updates the ratio between the two assets. Instead of assuming a 1:1 ratio, the rate provider queries the blockchain and constantly updates to the correct ratio. No longer does the yield leech out to arbitrage traders. The yield from these IB tokens now actually flows to the liquidity providers!
Interest-Bearing tokens are the ultimate example of capital efficiency in DeFi. As a user, there is little to no effort required to generate additional value. Pairing these tokens with their base token into a liquidity pool allows users to earn additional yield due to swap fees, on top of the underlying yield from the token.
Innovation meets utility. MetaStable pools differ from StablePools by utilizing the innovative Rate Provider. Instead of assuming a 1:1 ratio, the rate provider queries the blockchain and constantly updates to the correct ratio. No longer must users lose out on the yield generated by IB tokens to arbitrage traders. The Rate provider unlocks the full power of IB tokens.
Composable and flexible. The newest iteration of metastable pools highlights the composability of the DEX through a process known as nesting. Super capital-efficient MetaStable BPTs can now slot inside other pool types to increase yield and unlock efficient swaps through the nested structures. Meet the composable stable pool.
Composable stable pools allow a fluid and seamless route for swaps on the DEX. Nesting BPTs culminated with the flexible vault structure ensure an interwoven hub for assets. Instead of requiring multiple pools that fractionalize liquidity, trades can flow through an interconnected pathway within pool constructs.
The Rate provider unlocks an innovative revenue source. Instead of being strictly reliant on swap volume for revenue generation, Beethoven X can utilize the Rate Prover to take a fee on IB yield generated. For the first time a DEX is no longer bound by the swap fees on the protocol, instead, protocol revenue is purely dependant on TVL.
Liquidity providers gain exposure to a super-capital efficient pool type with multiple tokens that naturally appreciate all while earning swap fees. Traders can then leverage the interconnected liquidity and low gas fees. All the while, the yield capturing mechanism of the protocol ensures a sustainable revenue source that filters back to users as gauge invectives.