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Exchanges (DEX)

Etherex

# Etherex Expenses Methodology

## 1. Overview

EthereX expenses measures the total daily cost of token incentives distributed to liquidity providers on the EthereX decentralized exchange. This metric captures the protocol's operational expenses in the form of REX token rewards paid to users who provide liquidity to trading pools. The calculation identifies REX token distribution events from EthereX gauge contracts, converts the token amounts to USD, and aggregates them daily to provide a comprehensive view of the protocol's incentive costs.

## 2. Data sources

The methodology relies on the following raw data sources:
- **Blockchain events**: Parsed `NotifyReward` events from EthereX v2 and v3 Gauge contracts deployed on Linea blockchain
- **Token metadata**: REX token information including contract address and decimal precision (18 decimals)
- **External data**: End-of-day price feeds for REX token USD conversion
- **Chain configuration**: Linea blockchain availability and operational status data

## 3. Step-by-step calculation

### Component A: LP rewards event extraction
- **Purpose**: Captures all REX token distribution events from EthereX gauge contracts
- **Logic**: Extracts `NotifyReward` events from both EthereX v2 and v3 Gauge contracts on Linea blockchain. Events include block timestamp, transaction hash, log index, contract address, token address (`reward` parameter), and distribution amount (`amount` parameter). Only non-removed events are included to ensure data integrity. Each event is tagged with the chain identifier, product identifier as 'Concentrated Liquidity', and version information.
- **Key fields**: `block_timestamp` for timing, `token_address` for token identification, `amount` for distribution quantity, `address` for gauge contract, and `transaction_hash` for traceability

### Component B: Token incentives calculation
- **Purpose**: Filters LP rewards for REX tokens and converts them to USD values
- **Logic**: Filters the LP rewards events to include only REX token distributions by matching the token address `0xefd81eec32b9a8222d1842ec3d99c7532c31e348`. Truncates block timestamps to daily boundaries using day-level granularity. Applies decimal correction to convert raw blockchain amounts from the smallest token units (wei equivalent) to human-readable token amounts using 18-decimal precision. Converts daily token amounts to USD using end-of-day price feeds matched by date and token address.
- **Key fields**: `timestamp` (daily boundary), `chain_id` (Linea), `token_incentives` (USD-converted daily amounts), and `token_address` (REX contract)

### Final aggregation
- **Combining components**: The expenses metric directly uses the token incentives calculation without additional combination steps, as expenses are defined as the total token incentives distributed
- **Currency conversion**: REX token amounts are converted to USD using end-of-day price feeds, with decimal correction applied to handle the token's 18-decimal precision
- **Time aggregation**: All events within each calendar day are summed together, with timestamps truncated to daily boundaries based on block timestamp
- **Final calculation**: The daily expenses value equals the total USD value of REX tokens distributed to liquidity providers on that day. Days with no distribution events are filled with zero values to maintain continuous time series data. Results are filtered based on Linea chain availability to exclude periods when the blockchain was not operational.

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

Total project operating and incentive expenses.

EtherexREX

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Expenses

Expenses

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