# Grove Allocator Expenses Methodology

## 1. Overview

Expenses measures the total operating and funding costs incurred by Grove Allocator. Funding costs associated with the Sky (formerly MakerDAO) debt path are primarily captured by this metric. The capital outflows required to maintain the protocol's allocated positions are represented by these costs, which are essential for calculating the net earnings of Grove Allocator.

## 2. Data sources

- **Blockchain events**: `drip` and `grab` function calls from `Jug` and `Vat` contracts, and ERC-20 `Transfer` events, covering Ethereum
- **External data**: End-of-day price feeds for USDS, and asset metadata

## 3. Step-by-step calculation

### Component A: Grove Allocator Sky settlement interest accruals

- **Purpose**: Funding costs recognized on the Sky debt path for the `ALLOCATOR-BLOOM-A` collateral type are captured.
- **Logic**: `drip` and `grab` function calls from `Jug` and `Vat` contracts are parsed to identify rate changes and debt adjustments (dart) for the specific `ALLOCATOR-BLOOM-A` identifier on Ethereum. Debt increases are calculated by applying the current interest rate to the change in debt. These amounts are further adjusted by subtracting the net value of USDS transfers to or from the Grove subproxy address within the same settlement transaction.
- **Key fields**: `rate`, `dart`, `amount` (USDS transfer values)

### Component B: Grove Allocator token incentives

- **Purpose**: Protocol-disbursed token incentives are captured.
- **Logic**: This component is currently set to a constant value of zero. Protocol-level token incentives are not currently exposed in the active metric set for Grove Allocator.

### Component C: USD conversion and aggregation

- **Purpose**: All expense components are normalized into a single USD-denominated metric.
- **Logic**: Native asset amounts from interest accruals are normalized by decimal precision. These values are multiplied by end-of-day price feeds to determine the USD value. All components are summed to provide a total expense figure at daily granularity with UTC day boundaries.

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

Total project operating and incentive expenses.

Expenses

Asset management

Grove borrows via Sky's Allocator Module and deploys capital into curated yield strategies through an ALM (Asset-Liability Management) controller architecture. The protocol generates yield across its positions while management fees are settled off-chain via a Monthly Settlement Cycle between Grove and Sky DAO.

Grove operates as a programmable capital allocator that draws stablecoins from Sky Protocol and deploys them into diversified institutional-grade yield-bearing positions spanning tokenized treasuries, private credit, DeFi lending markets, and curated vaults across multiple chains.

Grove is a DeFi protocol built on Sky (formerly MakerDAO) infrastructure, incubated by Grove Labs and managed by Steakhouse Financial as risk curator.

Grove Allocator

Expenses

Expenses

Chain breakdown