Liquidity providers deposit funds into BMX and receive trading fees from traders (supply-side fees).

BMX is a non-custodial exchange for spot and perpetual contracts built on Base. BMX has three product lines: Classic, Freestyle, and Based MediaX

BMX tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Derivative exchanges

# BMX Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by BMX to operate its business. Included in this metric are token incentives distributed to supply-side and demand-side users, as well as operating expenses related to liquidity bootstrapping and ecosystem growth. Operational costs are primarily incurred through bribes paid to Aerodrome to incentivize liquidity for pools containing the BMX asset and direct distributions to traders and liquidity providers.

## 2. Data sources

- **Blockchain events**: `Claimed` events from `IncentiveGauge` contracts; `NotifyReward` events from `BribeVotingReward` contracts; `Distribute` events from `RewardDistributor` contracts; `DistributeVolumeRewards` events from `VolumeRewardDistributor` contracts; `Reward` events from `DibsRewarder` contracts; `GaugeCreated` events from `Voter` contracts; and `PoolCreated` events from `Factory` contracts, covering Base.
- **External data**: End-of-day price feeds and asset metadata.

## 3. Step-by-step calculation

### Component A: Deliswap token incentives

- **Purpose**: Captures token incentives distributed to users of the Deliswap product.
- **Logic**: `Claimed` events are parsed from `IncentiveGauge` contracts. The `amount` and `token` address are extracted for each claim event associated with the Deliswap product.
- **Key fields**: `amount`, `token`

### Component B: Aerodrome liquidity bribes

- **Purpose**: Identifies operating expenses paid as bribes to Aerodrome to bootstrap liquidity.
- **Logic**: `NotifyReward` events are parsed from `BribeVotingReward` contracts. To identify relevant bribe contracts, `GaugeCreated` events from `Voter` contracts and `PoolCreated` events from `Factory` contracts are utilized to filter for Aerodrome pools containing the BMX asset. Only events initiated by specific BMX-funded addresses are included to ensure the costs are attributed to the protocol.
- **Key fields**: `amount`, `reward`, `from`

### Component C: BLT and volume-based incentives

- **Purpose**: Captures incentives paid to BLT pool participants and high-volume traders.
- **Logic**: `Distribute` events are parsed from `RewardDistributor` contracts for the BLT rewarder address. Additionally, `DistributeVolumeRewards` events from `VolumeRewardDistributor` contracts and `Reward` events from `DibsRewarder` contracts are aggregated. For volume rewards, individual incentive quantities are extracted from the `amounts` array within the event data.
- **Key fields**: `amount`, `token`, `amounts`

### Component D: General token incentives

- **Purpose**: Captures general token incentives distributed via designated rewarder contracts.
- **Logic**: `Distribute` events are parsed from `RewardDistributor` contracts for specific rewarder addresses. These incentives are typically distributed in the form of the oBMX asset to ecosystem participants.
- **Key fields**: `amount`, `token`

### Component E: USD conversion and aggregation

- **Purpose**: Normalizes all identified expenses into a single USD-denominated metric.
- **Logic**: All identified expense components are aggregated by day and chain. Amounts are normalized by decimal precision and multiplied by end-of-day price feeds. Daily granularity is maintained using UTC day boundaries.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

BMXBMX

Archived

Expenses

Expenses

Competitive landscape

Chain breakdown