# Grove Allocator Token Incentives Methodology

## 1. Overview

Token Incentives measures the value of protocol-issued assets distributed to users to encourage liquidity provision or other value-aligned behaviors. For Grove Allocator, this metric is currently set to zero. This reflects that protocol-level token distributions are not currently exposed in the reported metric set for this product.

## 2. Data sources

- **None**: This metric is set to a constant value and does not consume blockchain events

## 3. Step-by-step calculation

### Component A: Metric initialization

- **Purpose**: Assign a baseline value for the token incentives metric.
- **Logic**: Token incentives are hardcoded to zero for all timestamps and chains. This constant value is maintained to ensure schema consistency across the analytics platform while protocol-specific incentive tracking is not active for Grove Allocator.

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

Value of native tokens distributed as incentives.

Token incentives

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

Token incentives

Token incentives

Chain breakdown