# dYdX Chain Expenses Methodology

## 1. Overview

Expenses measures the total value of token incentives distributed by the dYdX Chain ecosystem to support protocol operations and growth. These costs specifically represent disbursements made from the community treasury to various ecosystem participants. Tracking these expenses provides insight into the protocol's spend on user acquisition, security, and contributor rewards.

## 2. Data sources

- **Blockchain events**: `coin_spent` events from community treasury addresses on dYdX Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Community treasury incentive extraction

- **Purpose**: Identify and quantify token disbursements from the dYdX Chain community treasury.
- **Logic**: `coin_spent` events are parsed to identify transfers originating from the community treasury address (`dydx15ztc7xy42tn2ukkc0qjthkucw9ac63pgp70urn`). Transactions are filtered to include only those denominated in the native `adydx` asset. The disbursed amount is extracted from the event attributes using regular expression parsing to isolate the numeric value from the asset ticker.
- **Key fields**: `event_attributes` (containing spender and amount data), `block_timestamp` (timing).

### Component B: USD conversion and aggregation

- **Purpose**: Normalize incentive values and convert them into a standard currency for analysis.
- **Logic**: Extracted incentive amounts are normalized by decimal precision. These values are then multiplied by end-of-day price feeds. Daily totals are calculated by summing the USD value of all treasury disbursements within UTC day boundaries.
- **Key fields**: `amount`, `block_timestamp`, `token_address`.

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

Total project operating and incentive expenses.

Expenses

Blockchains (L1)

Market makers offer trades through order book & make money on bid-ask spreads (supply-side fees).

dYdX is a non-custodial trading and derivatives protocol initially built on Ethereum and later expanded to their own blcokchain built on top of the Cosmos SDK. dYdX was founded by Antonio Juliano and launched in 2017.

DYDX tokenholders own and govern the protocol. dYdX Trading Inc. currently takes all of the total trading fees paid by traders (revenue). dYdX’s investors include a16z, Polychain, The Spartan Group, etc.

dYdX Chain

Expenses

Expenses

Chain breakdown