Liquidity providers (LPs) deposit funds into Convex Finance and receive a return on investment (supply-side fees).

Convex Finance is an asset management and staking protocol built on Ethereum. Convex Finance launched in May 2021.

CVX tokenholders own and govern the protocol. They currently take a cut of the total yield generated (revenue).

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Asset management

Convex Finance

# Convex Finance Expenses Methodology

## 1. Overview

Convex Finance expenses represents the USD value of CVX token incentives paid out by the protocol. This metric captures the protocol's operating expenses in the form of newly minted CVX tokens distributed as rewards to users. The calculation identifies CVX token mint events from Ethereum blockchain data, converts the minted amounts to USD values, and aggregates them daily to represent the protocol's token-based expenses.

## 2. Data sources

- **Ethereum token transfer events**: Parsed `Transfer` events from the Ethereum blockchain, specifically for the CVX token contract
- **CVX token contract**: Events from the CVX token contract address (`0x4e3fbd56cd56c3e72c1403e103b45db9da5b9d2b`) on Ethereum
- **End-of-day token price feeds**: CVX token price data used for USD conversion
- **Token metadata**: CVX token decimal information for proper value conversion

## 3. Step-by-step calculation

### Component A: CVX mint identification
- **Purpose**: Identifies when new CVX tokens are minted (created) by the protocol
- **Logic**: Filters Ethereum token transfer events for the CVX token contract where the `from_address` equals the null address (`0x0000000000000000000000000000000000000000`). When tokens are transferred from the null address, it indicates new token creation (minting) rather than transfers between existing holders. Only includes events after the rewards start date of May 17, 2021.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for event identification, `token_address` confirming CVX token, `amount` representing the number of CVX tokens minted

### Component B: Daily aggregation and USD conversion
- **Purpose**: Aggregates CVX mint amounts by day and converts to USD values
- **Logic**: Groups the CVX mint events by day using timestamp truncation to daily boundaries. Applies the Token Terminal conversion macro to transform CVX token amounts into USD values using end-of-day price feeds. The conversion includes decimal correction based on CVX token metadata (18 decimals) to ensure proper value calculation.
- **Key fields**: `timestamp` truncated to daily granularity, `token_incentives` containing the USD value of minted CVX tokens, protocol classification fields including `business_line` set to "Asset management"

### Component C: Metric finalization
- **Purpose**: Standardizes the data format and fills any gaps in the time series
- **Logic**: Applies Token Terminal's standard metric finalization process which validates data structure, ensures consistent schema, and implements gap-filling strategy. Uses "fill_zeros" strategy meaning any days without CVX mint events will show zero expenses rather than missing data points.
- **Key fields**: Standardized metric fields including `timestamp`, `chain_id`, `product_id`, and the finalized `token_incentives` values

### Final aggregation
- **Combining components**: The expenses metric simply relabels the `token_incentives` field as `expenses`, representing the same underlying data with semantic clarity for the expenses use case
- **Currency conversion**: CVX token amounts are converted to USD using end-of-day price feeds at the time of each mint event, with proper decimal adjustment for the 18-decimal CVX token
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with any gaps filled with zero values
- **Final calculation**: The final expenses value equals the USD value of all CVX tokens minted on each day, calculated as the sum of (CVX amount minted × CVX end-of-day price) for all mint events on that day

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

Total project operating and incentive expenses.

Convex FinanceCVX

Expenses

Expenses

Competitive landscape

Chain breakdown