Lenders deposit funds into Gearbox and receive interest payments from borrowers.

Gearbox is a non-custodial lending protocol built on Ethereum. Gearbox was founded by Mikhail Lazarev and launched in 2021.

GEAR tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

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Gearbox

# Gearbox Token incentives Methodology

## 1. Overview

Token incentives measures the value of native GEAR assets distributed to Gearbox users, including liquidity providers, traders, and other ecosystem participants. These assets are distributed to reward activity and bootstrap liquidity across Gearbox V1 and Gearbox V3. Realized claims from Gearbox's native distribution contracts, historical airdrops, and external reward distribution platforms like Merkl are captured. By tracking these distributions, the cost of user acquisition and liquidity maintenance can be analyzed.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events from Gearbox distributor contracts and the marketing multisig, and `Claimed` events from `Distributor` contracts, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Gearbox V1 and Gearbox V3 distributor claims

- **Purpose**: Capture GEAR distributions from Gearbox's native reward contracts and marketing multisig
- **Logic**: ERC-20 `Transfer` events are parsed where the transferred asset is the GEAR token. For distributor claims, transfers originating from designated distributor contracts are identified, excluding transfers to the treasury address. For trader rewards, transfers originating from the marketing multisig address during the specified 2024 promotional period are filtered to include only verified trader-reward transaction hashes. These transfers are categorized under Gearbox V1 or Gearbox V3 based on the distributing contract.
- **Key fields**: `block_timestamp`, `account_address`, `amount`, `transaction_hash`

### Component B: Merkl reward claims

- **Purpose**: Capture GEAR incentives distributed through the Merkl platform
- **Logic**: `Claimed` events from `Distributor` contracts are parsed. The events are filtered to isolate claims where the reward asset matches the GEAR token address and the emitting contract matches the Merkl distributor address. Unconfirmed or removed events are excluded.
- **Key fields**: `block_timestamp`, `account_address`, `amount`, `token_address`

### Component C: USD conversion and aggregation

- **Purpose**: Normalize claim amounts, convert to USD, and aggregate to daily intervals
- **Logic**: Claimed amounts from native distributors and Merkl are combined. The raw asset amounts are normalized by decimal precision using asset metadata. The normalized amounts are multiplied by end-of-day asset prices to determine the USD value. The values are aggregated by day, chain, and product using UTC day boundaries, with missing days filled with zeros.
- **Key fields**: `timestamp`, `token_incentives`, `price_usd`

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

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

Competitive landscape

Chain breakdown