Beets
About
Beets is a decentralized finance protocol on the Sonic blockchain offering liquid staking services and an automated market maker (AMM) exchange powered by Balancer v3. It functions as a hub for liquid-staked tokens, enabling users to stake native S tokens for yield-bearing stS while providing liquidity across diverse pool types. The protocol integrates governance through maBEETS tokens that reward long-term participation and alignment.
Where Does Yield Come From?
Beets generates yield for users through two main mechanisms: liquid staking and providing liquidity.
Liquid Staking
When you stake S tokens (the native token of the Sonic blockchain), you receive stS tokens. These stS tokens are "liquid-staked" tokens that represent your staked position. They earn staking rewards because your S tokens are delegated to Sonic validators, who help secure the network.
The rewards are distributed with a fee structure:
- First, 15% of the staking rewards go to the validators for their node management.
- Then, the protocol takes a 10% fee on the remaining rewards.
- You receive the net yield, which is automatically reflected in the increasing exchange rate of your stS tokens compared to regular S tokens.
Providing Liquidity
Beets includes a decentralized exchange (DEX) powered by Balancer v3. When you add your tokens to a trading pool (become a liquidity provider), you can earn from several sources:
- Swap fees paid by traders who use the pool.
- Rewards that come from any yield‑earning tokens (like stS) held inside the pool.
- Additional stS rewards that the protocol distributes to liquidity providers.
The DEX also offers custom pool types, a "hooks" framework for adding extra features, and "boosted pools" that combine liquidity provision with lending opportunities for higher potential returns.
Governance Rewards
Users who want to help govern the protocol can earn extra rewards through the maBEETS system. This works in two steps:
- Provide liquidity to the Fresh Beets Pool (which holds 80% BEETS and 20% stS) to receive fBEETS tokens.
- Deposit your fBEETS to create a maBEETS position. Each position is linked to a special NFT (a non‑fungible token) that adjusts based on its maturity.
Rewards from maBEETS increase with both the size of your position and the length of time you hold it, encouraging long‑term participation and alignment with the protocol.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Spearbit13-12-2024 |
| The audit revealed no critical or high-severity vulnerabilities, with all medium and most low-risk issues addressed before deployment, indicating a generally secure implementation with residual low-impact concerns. |
Trail of Bits06-01-2025 - 10-01-2025 |
| The audit found no critical or high severity vulnerabilities, with only one low-severity issue and two informational findings. The codebase is well-organized with thorough test coverage, and no immediate upgrade is required for the deployed contract. |
OpenZeppelin15-03-2021 |
| OpenZeppelin's audit uncovered a critical mathematical bug in StableMath alongside several medium and low-severity issues, with most concerns acknowledged or addressed by the Balancer team during the engagement. |
Trail Of Bits22-03-2021 - 02-04-2021 |
| The audit revealed critical concerns around asset manager privileges and arithmetic rounding in stable pools, but the codebase follows best practices overall. Trail of Bits recommended addressing all findings and performing additional testing before final deployment. |
Certora15-02-2021 - 22-04-2021 |
| The formal verification identified and resolved critical security vulnerabilities in the Vault contract, with all fixes validated against comprehensive formal specifications, significantly enhancing the protocol's safety guarantees. |
OpenZeppelin09-10-2021 |
| The audit uncovered one critical mathematical bug affecting reward distribution and several medium-to-low severity issues, all of which were addressed or acknowledged by the Balancer team before deployment, ensuring the updated contracts maintain the protocol's high security standards. |
Trail Of Bits27-09-2021 - 08-10-2021 |
| The audit revealed critical rounding vulnerabilities that could enable token theft, though Balancer addressed most findings promptly. While the system demonstrates robust security practices, its complex composability necessitates thorough documentation and ongoing arithmetic validation. |
ABDK27-05-2022 |
| The audit revealed only low-to-moderate severity issues primarily related to code quality and design optimizations, with several already addressed by the client, indicating a relatively secure implementation of the authorizer components. |
Trail Of Bits23-05-2022 - 27-05-2022 |
| The audit found no significant security flaws in the Balancer relayer contracts, with only informational issues and one undetermined finding that appears difficult to exploit, indicating a relatively secure implementation for the reviewed scope. |
Certora21-06-2022 - 23-09-2022 |
| This formal verification audit identified one low-severity issue and two informational findings, with the majority of specified safety properties proven correct under the verification assumptions. |
Trail Of Bits22-08-2022 - 02-09-2022 |
| The audit revealed one high-severity access control bug that would prevent pool owners from calling privileged functions, along with several lower-risk issues, indicating the codebase requires refactoring to reduce complexity and improve maintainability. |
Trail Of Bits11-10-2022 - 25-10-2022 |
| The audit found no critical, high, medium, or low severity vulnerabilities, with only three informational issues identified, indicating the Balancer Managed Pool contracts were well-secured at the time of review. |
Certora08-05-2023 |
| The formal verification audit validated core security properties of the TimelockAuthorizer while identifying several design quirks, with the most significant finding being a medium-severity root claim issue that the team accepted as a known limitation under trust assumptions about root addresses. |
Certora06-08-2024 - 19-09-2024 |
| The audit revealed several severe vulnerabilities that have all been addressed, leaving the protocol with only minor known issues and a comprehensive set of formal guarantees for core vault and buffer operations. |
Trail Of Bits11-12-2024 |
| The audit reveals critical vulnerabilities in Balancer v3's buffer mechanism that could drain the entire Vault, though these were addressed in the fix review; however, the system's inherent complexity and residual design risks warrant careful monitoring and further testing before production deployment. |
Spearbit27-11-2024 |
| The audit uncovered one high-severity rounding inconsistency that could affect pricing in edge cases, along with several low-risk and informational issues, most of which were promptly addressed by the Balancer team prior to the report's publication. |
Cantina17-12-2024 |
| The audit found no critical or high-severity vulnerabilities, with medium risks addressing slippage protection gaps and reentrancy that should be addressed before production deployment to ensure user fund safety. |
Certora12-12-2024 - 24-12-2024 |
| The audit found only minor low-severity issues that were all promptly fixed, with no critical or high-risk vulnerabilities identified, indicating robust security posture for the Gyroscope pool implementation. |
Cantina25-11-2024 - 29-11-2024 |
| The audit found only minor informational issues that were all addressed, indicating robust security posture for the Balancer v3 codebase reviewed. |
Certora23-01-2025 - 30-01-2025 |
| The audit found only low-severity issues with two fixed and one acknowledged design limitation, indicating the Stable Surge hook implementation has no critical security flaws but includes acceptable trade-offs in fee calculation accuracy. |
Certora03-02-2025 - 07-02-2025 |
| This audit identified only minor code quality and consistency issues, with no security vulnerabilities found in the MEV Tax Hook implementation, indicating robust security design for capturing MEV through dynamic swap fees. |
Certora10-02-2025 - 17-02-2025 |
| The audit found only minor informational issues, all of which were either fixed or acknowledged, indicating the Liquidity Bootstrap Pool implementation is robust with no significant security vulnerabilities identified. |
Certora11-08-2025 - 19-08-2025 |
| The audit found no critical or high severity issues, with all medium and low findings either fixed or acknowledged, indicating a well-secured LP oracle implementation following formal verification review. |
Certora04-09-2025 - 08-09-2025 |
| The audit found no critical or high severity vulnerabilities, with all identified issues (1 Medium, 1 Low, 2 Informational) resolved before deployment, indicating robust security practices for the nested pool functionality. |
Certora09-09-2025 - 10-09-2025 |
| This formal verification audit confirmed the EclpLPOracle contract's mathematical correctness and identified zero security vulnerabilities, providing strong assurance for its manipulation-resistant TVL oracle functionality. |
Certora01-12-2025 - 26-01-2026 |
| The audit found no critical or high-risk vulnerabilities, with only medium and low severity issues that were either already fixed or pose minimal exploitable risk, indicating a generally secure implementation of Balancer V3 core components. |
Spearbit13-12-2024 |
| The audit revealed no critical or high-severity vulnerabilities, with all medium and low-risk issues addressed or acknowledged, indicating a generally secure implementation with residual design considerations for slashing handling and user experience. |
Trail of Bits06-01-2025 - 10-01-2025 |
| The audit found no critical or high-severity vulnerabilities, only one low and two informational issues, indicating the Sonic Staking system is relatively secure with robust test coverage and mature codebase practices. |
Legal
Legal form
Non-profit limited liability company (LLC) organized as a DAO
Registration jurisdiction
Republic of the Marshall Islands
Status and notes
Operating entity: BeethovenX DAO LLC, a non-profit LLC formed under the Marshall Islands DAO Act. The operating agreement is available in the official documentation. Token holders who participate in governance via maBEETS become members of the LLC. Formation date: April 5, 2023.