How Does Beets (Beethoven X) Work?

DEX|Risk B-|7 mechanisms|5 interactions

The primary decentralized exchange and liquid staking platform on the Sonic blockchain, built as a fork of Balancer V2. It holds $1M in deposits and provides the stS liquid staking token used across Sonic DeFi. Its B grade reflects standard well-tested mechanisms and small scale, offset by inherited Balancer V2 vulnerabilities and new chain risk.

TVL

$1M

Sector

DEX

Risk Grade

B-

Value Grade

C+

Core Mechanisms

DEX/AMM/Balancer-Fork

Balancer V2 weighted pool fork on Sonic

Standard Balancer V2 fork pattern. Inherits all V2 codebase characteristics including known vulnerabilities.

Liquid-Staking/LST

stS (Sonic Staked S) liquid staking token

Standard LST pattern (Lido since 2020). Applied to Sonic's native S token.

DEX/AMM/Stable

Composable stable pools for pegged assets on Sonic

Standard stable pool pattern. Uses Balancer V2 composable stable pool math.

Governance/veToken

veBEETS governance token

Standard veToken governance (Curve since 2020).

Emissions/Gauge

Gauge voting for BEETS emission allocation

Standard gauge voting pattern.

Yield/Farming

Yield farming with BEETS rewards

Standard yield farming pattern.

Ecosystem/Sonic

Core DeFi infrastructure on Sonic L1

Serves as primary liquidity hub and LST provider for Sonic ecosystem.

How the Pieces Interact

stS liquid stakingSonic DeFi ecosystemHigh

stS is a core primitive across Sonic DeFi used as collateral in lending protocols. A depeg would trigger cascading liquidations chain-wide.

Balancer V2 codebaseKnown vulnerabilitiesHigh

As a Balancer V2 fork, Beets inherits all V2 vulnerabilities including the composable stable pool math error that led to the $128M November 2025 Balancer exploit.

Sonic L1 dependencyChain riskMedium

Sonic is a new chain with limited battle-testing. Network outage or infrastructure bug could impair all Beets operations simultaneously.

veBEETS governanceEmission allocationMedium

Concentrated veBEETS voting power could misallocate emissions away from productive pools.

Yield farming incentivesMercenary capitalLow

Farming rewards attract mercenary capital that exits when incentives decline, creating sudden liquidity drops.

What Could Go Wrong

  1. stS (Sonic Staked S) liquid staking token is a core primitive used across Sonic DeFi. A depeg would trigger cascading liquidations chain-wide.
  2. As a Balancer V2 fork, Beets inherits all Balancer V2 codebase vulnerabilities. The November 2025 $128M Balancer exploit demonstrates this risk is real.
  3. Concentrated exposure to Sonic L1, a new chain. Network outage or infrastructure bug could impair staking and DEX operations simultaneously.

Balancer V2 Vulnerability Inheritance

Elevated

Trigger: A Balancer V2 vulnerability is discovered or the November 2025 exploit pattern is reproduced against Beets' composable stable pools on Sonic

  1. 1.Attacker exploits Balancer V2 composable stable pool vulnerability in Beets deployment on Sonic Liquidity drained from affected Beets pools
  2. 2.stS/S stable pools are affected, causing stS to depeg Sonic DeFi protocols using stS as collateral face cascading liquidations
  3. 3.Sonic ecosystem confidence collapses as core DEX and LST are compromised Mass exodus from Sonic chain; Beets and dependent protocols face terminal TVL decline

Risk Profile at a Glance

Mechanism Novelty0/15
Interaction Severity10/20
Oracle Surface2/10
Documentation Gaps3/10
Track Record6/15
Scale Exposure0/10
Regulatory Risk2/10
Vitality Risk10/10
B-

Overall: B- (33/100)

Lower score = safer

More on Beets (Beethoven X)

Related DEX Explainers