Liquidity providers deposit funds into HMX and receive trading fees from traders (supply-side fees).

HMX is a non-custodial exchange for perpetual contracts built on Arbitrum. HMX was founded by Shu Wei, Rockman, and Taoree and was launched in 2022.

HMX tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). HMX's investors include Coral DeFi, Compound Capital Partners, Cryptomind, etc.

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Derivative exchanges

# HMX Expenses Methodology

## 1. Overview

The HMX expenses metric measures the total value of token incentives distributed by the HMX protocol to users as trading rewards and staking incentives. This metric captures operational expenses in the form of token distributions across various reward programs including trading incentives, staking rewards, and open interest incentives. The calculation aggregates token reward claims from multiple HMX reward contracts and converts them to USD values on a daily basis.

## 2. Data sources

- **Arbitrum blockchain events**: `LogHarvest` events from six HMX reward contracts that track when users claim their pending token rewards
- **Token reward contracts**: Events from `FeedableESHMXRewarder`, `FeedableARBRewarder`, `OpenInterestIncentiveRewarders`, `StakingESHMXRewarder`, `SurgeFeedableRewarder`, and `TLCRewarder` contracts
- **End-of-day price feeds**: Token price data for converting esHMX and ARB token amounts to USD values
- **Token metadata**: Token decimal information for proper amount normalization

## 3. Step-by-step calculation

### Component A: Token incentive event extraction
- **Purpose**: Extracts all token reward claim events from HMX reward contracts
- **Logic**: Collects `LogHarvest` events from six different HMX reward contracts on Arbitrum. Each event captures when a user claims pending token rewards from various incentive programs. The events include the recipient address, transaction details, and the `pendingRewardAmount` field containing the token quantity claimed. All events are classified under the 'Perpetual trading' business line, 'derivatives' market sector, and 'perpetual' business segment.
- **Key fields**: `address` (recipient), `pendingRewardAmount` (token quantity), `block_timestamp` (claim time), `token_address` (reward token), and contract-specific metadata

### Component B: Token incentive processing and USD conversion
- **Purpose**: Processes raw token amounts and converts them to USD values
- **Logic**: Truncates timestamps to daily boundaries for time aggregation. Groups token claim amounts by day, chain, account address, and token address. Converts token amounts to USD using end-of-day price feeds and applies decimal corrections based on token metadata. The conversion process ensures proper normalization of token quantities before price multiplication.
- **Key fields**: `timestamp` (daily), `token_incentives` (USD value), `account_address` (recipient), `token_address` (reward token)

### Final aggregation
- **Combining components**: The expenses metric simply renames the processed token incentives as expenses, maintaining all the USD-converted daily token reward values
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with proper decimal adjustment applied before price multiplication
- **Time aggregation**: All token claims are aggregated to daily boundaries using timestamp truncation
- **Final calculation**: The final expenses value represents the total USD value of all token incentives distributed by HMX reward contracts on each day, with data validation and gap filling applied through finalization macros

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

Total project operating and incentive expenses.

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Expenses

Expenses

Competitive landscape

Chain breakdown