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

Cap is a non-custodial exchange for perpetual contracts built on Arbitrum. Cap was founded by an anonymous team and launched in 2021.

CAP token holders own and govern the protocol. They currently take a cut of trading fees paid by traders (revenue).

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Derivative exchanges

# Cap Token incentives Methodology

## 1. Overview

Token incentives measures the total USD value of ARB tokens claimed by traders as incentives on the Cap protocol. This metric tracks the protocol's spending on trader rewards and incentives to understand the cost of user acquisition and retention. The calculation aggregates daily claimed ARB token incentives from Cap protocol v4 on Arbitrum, converts them to USD values, and presents them as daily totals.

## 2. Data sources

- **Blockchain events**: Parsed `RewardClaimed` events from Cap protocol v4 smart contracts on Arbitrum blockchain
- **Token price data**: End-of-day price feeds for ARB tokens to convert claimed amounts to USD values  
- **Token metadata**: Decimal precision information for proper token amount formatting

## 3. Step-by-step calculation

### Component A: Raw incentive claims extraction
- **Purpose**: Captures all ARB token incentive claims made by Cap traders
- **Logic**: Extracts `RewardClaimed` events from Cap protocol v4 contracts on Arbitrum. Each event represents a trader claiming ARB token rewards. The data includes the claiming account address, token address (ARB), claimed amount, and transaction details. Events are classified with protocol metadata including business line as "Perpetual trading", market sector as "derivatives", business segment as "perpetual", and version as "v4".
- **Key fields**: `block_timestamp` for timing, `account_address` for the claiming trader, `token_address` for the ARB token, `amount` for claimed quantity, and transaction identifiers for deduplication

### Component B: Daily aggregation and USD conversion  
- **Purpose**: Aggregates claimed incentives by day and converts to USD values
- **Logic**: Groups the raw claims by day using timestamp truncation to daily boundaries. Token amounts are converted from their native precision to USD values using end-of-day ARB token prices. The conversion process corrects for ARB token decimal places to ensure accurate dollar amounts. Missing days are filled with zero values to maintain complete time series data.
- **Key fields**: `timestamp` truncated to day level, `token_incentives` as the USD-converted daily total, chain and business classification fields

### Final aggregation
- **Combining components**: Raw claims are directly aggregated by day without complex joining, as all data comes from a single event type
- **Currency conversion**: ARB token amounts are converted to USD using end-of-day price feeds, with automatic correction for 18-decimal ARB token precision  
- **Time aggregation**: Claims are grouped by calendar day boundaries using timestamp truncation, with forward-filling of zero values for days without claims
- **Final calculation**: The final metric represents the total USD value of ARB tokens claimed as incentives by Cap traders on each day, providing insight into the protocol's daily incentive spending

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

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

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