# Stake Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by Ether.fi to operate the Stake product. For this product, expenses consist of token incentives distributed to users in the form of ETHFI rewards. These incentives are utilized to reward participants within the Liquid staking ecosystem and are converted to USD to provide a standardized view of the protocol's operational costs.

## 2. Data sources

- **Blockchain events**: `Claimed` events from `ETHFIRewards` contracts, covering Ethereum, Arbitrum, and Base
- **External data**: End-of-day price feeds for the ETHFI asset and asset metadata

## 3. Step-by-step calculation

### Component A: Reward claim extraction for Stake

- **Purpose**: Capture the value of ETHFI rewards distributed to participants of the Stake product
- **Logic**: `Claimed` events are parsed from `ETHFIRewards` contracts across Ethereum, Arbitrum, and Base. For V1 implementations, the `amount` field is extracted, while for V2 implementations, the `balance` field is utilized to identify the reward quantity. Only events specifically associated with the Stake product are included in this calculation.
- **Key fields**: `amount`, `balance`, `token_address`

### Component B: Normalization and USD conversion

- **Purpose**: Standardize reward values by accounting for decimal precision and market pricing
- **Logic**: Raw reward amounts are normalized by decimal precision using asset metadata. These normalized values are then multiplied by end-of-day price feeds for the ETHFI asset to determine the USD value of the incentives at the time of the claim.
- **Key fields**: `amount`, `token_address`, `timestamp`

### Component C: Daily aggregation and finalization

- **Purpose**: Consolidate reward data into a continuous daily time series
- **Logic**: USD-denominated reward values are aggregated by day and chain. The data is aligned to UTC day boundaries. A zero-filling strategy is applied to ensure a continuous time series for all supported chains, even on days where no reward claims are recorded.
- **Key fields**: `timestamp`, `chain_id`, `expenses`

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

Total project operating and incentive expenses.

Expenses

Liquid staking

Stakers deposit funds into Ether.fi and receive a return on investment in the form of staking rewards (supply-side fees).

Ether.fi is a non-custodial staking protocol built on Ethereum and other blockchains. Ether.fi was founded by Mike Silagadze and launched in 2023.

Ether.fi team & investors own and govern the protocol. They currently take a cut of the total staking rewards earned by the protocol (revenue). Ether.fi’s investors include North Island Ventures, Chapter One, Node Capital, and Arthur Hayes.

Stake

Expenses

Expenses

Chain breakdown