About Beethoven Part:2

BTH is the token of Beethoven. Unlike the consensus mechanism adopted by chains such as Bitcoin, Beethoven uses a mechanism of lockup to build consensus. Participants can choose the lockup time freely according to their preferences.. Of course, different choices will result in different rewards. The longer one stake the higher boost of farming on can get.

Although this consensus mechanism cannot eliminate whales, it is a plausible way to prevent the whales from dumping. To make it clear, one can only get a higher reward by choosing a longer lock duration. If whales want to maximize their earnings they will choose a longer lock. Thus, the risk of dumping gets minimized and the token price gets stabilized. To be noted, lockup is not a mandatory thing. One can always stake with no lock out of concern of liquidity at the price of less earning. BTH will be distributed to users through yield farming. The users hold will be the avouchment for getting a share of BTH Vault earnings.

Consensus mechanisms

We know that Blockchain is a distributed decentralized network that provides immutability, privacy, security, and transparency. There is no central authority present to validate and verify the transactions, yet every transaction in the Blockchain is considered to be completely secured and verified. This is possible only because of the presence of the consensus protocol which is a core part of any Blockchain network.

A consensus algorithm is a procedure through which all the peers of the Blockchain network reach a common agreement about the present state of the distributed ledger. In this way, consensus algorithms achieve reliability in the Blockchain network and establish trust between unknown peers in a distributed computing environment. Essentially, the consensus protocol makes sure that every new block that is added to the Blockchain is the one and only version of the truth that is agreed upon by all the nodes in the Blockchain.

The Blockchain consensus protocol consists of some specific objectives such as coming to an agreement, collaboration, co-operation, equal rights to every node, and mandatory participation of each node in the consensus process. Thus, a consensus algorithm aims at finding a common agreement that is a win for the entire network. Bitcoin uses this PoW consensus algorithm. The central idea behind this algorithm is to solve a complex mathematical puzzle and easily give out a solution.

The disadvantages in the traditional field of DeFi

Under the traditional POW consensus algorithm framework the higher hash rate means more rewards per unit time. However, this concept does not apply to DeFi’s mechanism. In Defi one’s yield is determined by his stake and the duration of staking. The disadvantage of this mechanism is that it’s difficult to build consensus and leaves enough room for whales to manipulate the market.Once the price is high enough, traders then start ‘dumping’ by selling their altcoins off at the higher price. Given the low liquidity of altcoins, the effects of the dump are usually instantaneous, and the price can plummet within a matter of seconds. There is typically a lot of slippage in the pump and dump process and many traders are left holding worthless coins they bought on the way up. Thus, the manipulation by the whales will cause irretrievable damage to the ecosystem.

Stake lock

In Beethoven, the longer lockup time one chooses, the more rewards one can earn, which is a fair play. Here are two equations explaining the calculation of lockup time and farming boost:

f(t): Remaining Locked Duration

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f(b): Actual boost for farming

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tn: Selected Locked Duration

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bn: Corresponding Farming boost

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Sn: Installments of Staked amount

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Sall: Aggregate staked amount

There is one thing to be noted. After you chose the longest lockup, which is 15 days,the lock cannot be terminated due to the build-in codes of the contract. if you want to unstake for certain reasons, you can add stake with “0” day lockup to shorten the overall lockup time.

Community consensus

The long-term evolution of a community requires support from a numerous number of people in a long term, as community consensus is the main force to maintain the development for a community. A strong consensus of a community will become to be the backbone which will determine the success of one project.

Perhaps the most essential question for Community living is “How do we reach consensus?” We decided that in our Community we would all have a direct role in the ongoing decision-making. The key to doing this is that all residents belong to hubs of about a dozen people. In addition to being a support group, these resident hubs are where the key issues of guiding the Community are explored and decided.

To achieve community consensus ,we will ensure that consensus discussions include participation by those having a substantive position, proposal, or stake in the matter under discussion, and to ensure that discussions balance level of participation with diversity of participation, ie, don’t let one or two voices drown out others. Consensus is achieved through a repeatable process that takes the discussion through several stages designed to ensure the outcome is representative and well-thought-out. And to facilitates or moderates each discussion to ensure the above.

Ecosystem programme of Beethoven

Beethoven aims to reward the long term holders due to the reason that an awesome project requires long-term supporter to subsist. That means the liquidity farming is hospitable to long term holders.

There are 0, 1, 5 and 15 days stake locked for the investors to choose, the farming boost are 0%, 1%, 8% and 20%, stake period can be altered by personal wishes in accordance with their rewards. The withdraw function will be unable to proceed if the stake is already locked. This mechanism will ensure the vast majority of interest to be gained by Beethoven long-term supporter and believer.

The long-term holder will become to be the cornerstone of Beethoven, to become a Beethoven farmer and believer is a better choice if you want to gain substantial profit

Governance

Beethoven cash seeks to motivate the broader community to take part in the Polygon ecosystem. BTH is a token ruled by every community members and BTH holders naturally have the right to attend in any voting or decision-making process on every issue .

After the project goes online and runs smoothly, more than 60% votes of BTH holders will build and verify the proposal of new token.

In the long-term, the community in the form of Beethoven Farm Improvement Proposal and Beethoven Farm Configuration Change Proposal will take charge of the governance of Beethoven . Through DAO, BTH holders can vote for critical topics such as functionality improvements/changes. Voters will receive BTH for participating in governance.

After the genesis farming, Beethoven Vault will go online. Vault refers to capital pools that automatically generate yield based on searching profitable opportunities in the market. It servers as a trust broker in crypto market. Users do not need to have a proficient knowledge of the underlying protocols involved or DeFi but only need to stake tokens into the Beethoven Vault and gain benefit regularly. Beethoven Vault will benefit users by saving gas costs, automating the yield generation and automatically shift capital to new and more profitable projects. It represent a passive-investing strategy and saving users’ energy to look for new projects.

Security & Risks

In the space of crypto, especially in the Decentralised Finance (DeFi) space, users have to understand the risks of projects and smart contracts before venturing into DeFi. We call this DYOR (do your own research).

As part of Beethoven’s long-term commitment to security and building trust within the community, we have laid out the ways in which we attempt to mitigate risks and provide a seamless Beethoven experience that users can trust.

General DeFi Risks

DeFi risks encapsulate a wide range of risks such as impermanent loss to risks of falling for scams such as wallet draining, private key being stolen, et cetera. Hence, DeFi users have to be careful themselves and learn to educate themselves constantly in this space. You can find a guide to keeping your funds SAFU here.

Smart Contract Security & Risks

Smart contracts are an innovative way for cryptocurrencies to interact with one another and with dApps (decentralised applications). However, due to the complexities that come with smart contracts, certain smart contracts may be prone to hacks. We’ve mitigated this risk by equipping all smart contracts with 24hr time-locks (except $BTH rewards multiplier at 12hrs) and having reputable auditors audit the entire project.

Fun Fact: Most of our vaults are operated using only 1 contract (not creating new contracts for each vault), so new vaults are created using the same construction (but with different constructors; which are the parameters/inputs to the contract). Working according to this mechanism assures the following:

Vaults will be audited end-to-end

Shorten the time needed to implement new vaults

Focus on adding value other than the creation of smart contracts

Audit report

Anchain.AI

Beethoven Safeguards

CertiKShield

Cover Protocol

3rd Party Risks

Beethoven serves as a yield aggregator by providing vaults that BTH-compounds rewards. However, vaults do not indicate any partnership or support by Beethoven. We’ve mitigated this risk by splitting the vaults into ‘regular vaults’ and ‘non-$BTH earning vaults’ based on the individual yield farm’s reputability on the BSC space, of which ‘non-$BTH earning vaults’ are considered riskier and specified on the platform by an explicit warning:

Bug Bounty program

In partnering with Immunefi we have established a way for the community to help and improve on the general quality of used smart contracts.

Immunefi is the premier bug bounty platform for smart contracts and DeFi projects, where security researchers review code, disclose vulnerabilities, get paid, and make crypto safer. Immunefi removes security risk through bug bounties and comprehensive security services to help drive high-quality decentralized financial products to the public.

Find more details here on how to enrol in the bug bounty program and receive bounties up to $100,000.