# Stake Token incentives Methodology

## 1. Overview

Token incentives measures the value of native ETHFI tokens distributed to users of Ether.fi Stake. These incentives are primarily issued as rewards to participants in the Liquid staking ecosystem to encourage Liquidity and protocol adoption. The metric serves as a key indicator of the economic costs associated with user acquisition and retention, functioning as the decentralized equivalent of stock-based compensation.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Stake reward distribution tracking

- **Purpose**: Identify and quantify native reward distributions to Stake users
- **Logic**: Reward distributions are identified by parsing `Claimed` events from `ETHFIRewards` contracts across V1 and V2 protocol deployments. The quantity of tokens distributed is extracted from the `amount` field in V1 contracts and the `balance` field in V2 contracts. All distributions are filtered to ensure only ETHFI rewards (contract address `0xfe0c30065b384f05761f15d0cc899d4f9f9cc0eb`) associated with the Stake product are included.
- **Key fields**: `amount` (reward quantity V1), `balance` (reward quantity V2), `token_address` (asset identification)

### Component B: USD conversion and aggregation

- **Purpose**: Normalize reward values to a common currency for reporting
- **Logic**: Token quantities are normalized by decimal precision and multiplied by end-of-day price feeds for the ETHFI asset. The resulting values are aggregated by day and chain using UTC boundaries. A zero-filling strategy is applied to ensure a continuous time series for the metric across all supported chains.
- **Key fields**: `block_timestamp` (timing), `token_incentives` (calculated value in USD)

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

Value of native tokens distributed as incentives.

Token incentives

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

Token incentives

Token incentives

Chain breakdown