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Etherex

# Etherex Token incentives Methodology

## 1. Overview

The Etherex token incentives metric measures the daily USD value of REX token rewards distributed to liquidity providers on the Etherex decentralized exchange. This metric quantifies the protocol's spending on liquidity incentives by tracking `NotifyReward` events emitted by Gauge contracts when rewards are distributed to LP participants.

## 2. Data sources

- **Blockchain events**: Parsed `NotifyReward` event logs from Etherex v2 and v3 Gauge contracts deployed on the Linea blockchain
- **Token metadata**: REX token contract details including decimal precision for amount normalization  
- **External data**: End-of-day price feeds for USD conversion of REX token amounts
- **Chain data**: Linea blockchain availability and reliability filters

## 3. Step-by-step calculation

### Component A: Raw reward event extraction
- **Purpose**: Extracts all reward distribution events from Etherex Gauge contracts
- **Logic**: Queries parsed `NotifyReward` events from both v2 (`Gauge_NotifyReward_event`) and v3 (`GaugeV3_NotifyReward_event`) contracts on Linea. Filters out any events marked as removed to ensure only valid transactions are included. Standardizes the data structure across both protocol versions by extracting key fields including block timestamp, transaction hash, contract address, reward token address (`reward` parameter), and reward amount (`amount` parameter)
- **Key fields**: `block_timestamp` for timing, `reward` for token identification, `amount` for reward quantity, `address` for contract identification

### Component B: REX token filtering and daily aggregation  
- **Purpose**: Isolates REX token incentives and aggregates them by day
- **Logic**: Filters the reward events to only include those where the reward token address matches the REX token contract address (0xefd81eec32b9a8222d1842ec3d99c7532c31e348). Truncates timestamps to day boundaries to enable daily aggregation. Groups rewards by day and sums the total REX token amounts distributed as incentives
- **Key fields**: `token_address` filtered to REX contract, `token_incentives` as aggregated daily amounts, `timestamp` truncated to day level

### Component C: USD conversion and decimal correction
- **Purpose**: Converts raw token amounts to USD values with proper decimal handling
- **Logic**: Applies the standard Token Terminal conversion process to transform raw blockchain integer amounts into USD values. Corrects for REX token decimal places to convert from the smallest token unit to whole token amounts. Uses end-of-day price feeds to convert REX token amounts to USD values based on the date of the reward distribution
- **Key fields**: Decimal-corrected `token_incentives` amounts converted to USD

### Final aggregation
- **Combining components**: The daily REX token incentive amounts are processed through the finalization macro which validates data completeness and applies consistent schema formatting
- **Currency conversion**: REX token amounts are converted to USD using end-of-day price feeds matched to the reward distribution date
- **Time aggregation**: Daily boundaries are established by truncating event timestamps to day level, ensuring all rewards within a 24-hour period are aggregated together
- **Final calculation**: The metric value represents the total USD value of REX tokens distributed as liquidity provider incentives on each day, with gaps filled using zeros to maintain continuous time series data

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

Value of native tokens distributed as incentives.

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