# Grove Allocator Revenue Methodology

## 1. Overview

Revenue for Grove Allocator is measured as the total income generated from yield-bearing positions and incentive rewards. The organic yield accrued on assets held within managed sleeves and external incentives claimed from distribution programs are included in this metric. Revenue is calculated as 100% of the fees generated by the protocol's managed assets.

## 2. Data sources

- **Blockchain events**: `Claimed` events from `Distributor` contracts and token transfer activity for Grove Allocator vault addresses, covering Ethereum, Base, Avalanche, and Monad
- **External data**: End-of-day price feeds and yield indices for supported assets

## 3. Step-by-step calculation

### Component A: Grove Allocator position balance tracking

- **Purpose**: Establish the daily asset balances held within Grove Allocator's managed vaults as the basis for yield accrual.
- **Logic**: Daily net token flows are aggregated for recognized Grove Allocator vault addresses. A continuous time series of end-of-day balances is maintained by cumulating these flows and forward-filling the most recent balance across a date spine for days without active transfers.
- **Key fields**: `timestamp`, `chain_id`, `holder_address`, `token_address`, `token_balance`

### Component B: Grove Allocator yield-based revenue calculation

- **Purpose**: Calculate the income generated from the organic yield of assets held in managed positions.
- **Logic**: Daily yield rates are derived from the percentage change in normalized yield indices for each supported asset. These rates are applied to the daily asset balances calculated in Component A to determine the accrued yield-based revenue in native units.
- **Key fields**: `yield_index_normalized`, `daily_yield_rate`, `position_fees`

### Component C: Grove Allocator incentive claim extraction

- **Purpose**: Capture additional revenue generated from external incentive programs.
- **Logic**: `Claimed` events are parsed from `Distributor` contracts on Ethereum. These events are filtered to isolate rewards claimed by authorized Grove Allocator addresses. The resulting claim amounts are mapped to the corresponding assets held by the protocol.
- **Key fields**: `block_timestamp`, `claim_token_address`, `claim_amount`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all revenue components into a common currency for cross-chain and cross-asset comparison.
- **Logic**: Yield-based revenue and incentive claims are aggregated by asset and chain. Amounts are normalized by decimal precision and multiplied by end-of-day price feeds. Daily granularity is maintained using UTC day boundaries.
- **Key fields**: `fees`, `price_usd`

### Component E: Revenue allocation

- **Purpose**: Determine the final revenue attributable to the protocol.
- **Logic**: Revenue is calculated as 100% of the total fees generated by Grove Allocator. The protocol's total take from managed assets and incentive claims is reflected in this calculation.
- **Key fields**: `revenue` (derived from `fees`)

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Revenue

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

Revenue

Revenue

Chain breakdown