Liquidity providers deposit funds into DFX and receive a share of trading fees (supply-side fees).

DFX is a decentralized foreign exchange protocol deployed on Polygon, Ethereum & Arbitrum. DFX was founded in 2021 by Kevin Zhang and Adrian Li.

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

governance

github

twitter

discord

etherscan

website

Exchanges (DEX)

DFX Finance

# DFX Finance Token incentives Methodology

## 1. Overview

The DFX token incentives metric measures the daily value of DFX protocol tokens distributed as liquidity incentives to users. This metric quantifies the protocol's spending on user acquisition and liquidity provision rewards, tracking incentive payments made through staking reward contracts across multiple chains and protocol versions. The calculation combines event-based tracking from smart contract emissions with supplementary transfer-based data collection to ensure comprehensive coverage of all incentive distributions.

## 2. Data sources

The metric relies on multiple complementary data sources to capture comprehensive incentive distribution data:

- **Smart contract events**: Parsed `RewardPaid` events from DFX `StakingRewards` contracts on Ethereum (v1) and Polygon (v1), plus `RewardPaid` events from `StakingRewardsV2` contracts on Polygon (v2)
- **Token transfer events**: Direct DFX token transfer records from Ethereum and Polygon networks, used as supplementary data source for comprehensive coverage
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal correction
- **Account mapping**: Hardcoded mapping of staking reward contract addresses to human-readable account names across different chains and protocol versions

## 3. Step-by-step calculation

### Component A: Event-based incentive extraction
- **Purpose**: Extract primary incentive payment data from smart contract events
- **Logic**: Collects `RewardPaid` events from DFX staking reward contracts across three configurations: v1 Ethereum, v1 Polygon, and v2 Polygon. Each event captures the recipient address, reward amount, and timing of incentive distribution. The DFX token address is mapped based on chain (Ethereum: `0x888888435fde8e7d4c54cab67f206e4199454c60`, Polygon: `0xe7804d91dfcde7f776c90043e03eaa6df87e6395`). Business dimensions are standardized across all records with business line as "Exchange AMM", market sector as "exchanges", and business segment as "dex"
- **Key fields**: `block_timestamp` for timing, `address` as recipient account, `reward` amount, `transaction_hash` and `log_index` for unique identification, plus chain and version metadata

### Component B: Transfer-based supplementary data
- **Purpose**: Capture additional incentive distributions that may not be covered by events
- **Logic**: Extracts direct DFX token transfers from both Ethereum and Polygon networks, filtering specifically for the DFX token addresses. This serves as a comprehensive backup data source to ensure no incentive payments are missed. Transfers are treated as v2 version data and use the `from_address` as the account address, with `value` representing the transfer amount
- **Key fields**: `block_timestamp`, `from_address` as account, `value` as transfer amount, `transaction_hash` and `log_index` for identification, filtered by DFX `token_address`

### Component C: Account mapping and enrichment
- **Purpose**: Convert contract addresses to human-readable account names
- **Logic**: Joins the combined incentive data with a predefined mapping of staking reward contract addresses. The mapping includes 43 specific contract addresses across Ethereum and Polygon for both v1 and v2 versions, all classified as "Staking Rewards" accounts. This mapping enables proper identification and categorization of different incentive distribution contracts
- **Key fields**: Maps `account_address` to `account_name`, preserving chain and version information for accurate matching

### Component D: USD conversion and decimal correction
- **Purpose**: Standardize incentive amounts in USD with proper decimal handling
- **Logic**: Applies the `convert_to_usd_and_correct_decimals` macro to transform raw token amounts into standardized USD values. This process corrects for token decimal places and converts amounts using end-of-day price feeds for the DFX token. Both decimal correction and USD conversion are enabled to ensure accurate valuation
- **Key fields**: Transforms `token_incentives` field into USD-denominated values with proper decimal scaling

### Final aggregation
- **Combining components**: The event-based and transfer-based data are unioned together, then joined with account mapping to create a unified dataset of all incentive distributions
- **Currency conversion**: Raw token amounts are converted to USD using end-of-day price feeds, with automatic decimal correction applied based on token metadata
- **Time aggregation**: Data is aggregated to daily boundaries using `timestamp_trunc` function, creating consistent daily totals across all incentive types
- **Final calculation**: The `finalize_metric_token_incentives` macro applies schema validation, implements zero-fill strategy for missing days, and ensures data quality. Chain availability filtering is applied to maintain consistency across supported blockchain networks. The final metric represents the daily USD value of DFX tokens distributed as liquidity incentives across all tracked staking reward contracts and supplementary transfer sources

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

Value of native tokens distributed as incentives.

DFX FinanceDFX

Token incentives

Token incentives

Competitive landscape

Chain breakdown