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 Token incentives Methodology

## 1. Overview

The HMX token incentives metric measures the total value of trading incentives distributed to users on the HMX protocol, expressed in USD. This metric captures rewards paid out in esHMX (escrowed HMX tokens) and ARB tokens to incentivize trading activity on the platform. The calculation tracks actual reward claim events from multiple incentive programs including trading rewards, staking rewards, open interest incentives, and liquidity provision rewards.

## 2. Data sources

- **Arbitrum blockchain event logs**: Parsed `LogHarvest` events from HMX protocol reward distribution contracts
- **Reward contract events**: Six different rewarder contracts including FeedableESHMXRewarder, FeedableARBRewarder, OpenInterestIncentiveRewarders, StakingESHMXRewarder, SurgeFeedableRewarder, and TLCRewarder
- **Token incentive data**: Pending reward amounts and recipient addresses from harvest events
- **End-of-day price feeds**: Token prices for esHMX and ARB tokens for USD conversion
- **Token metadata**: Decimal specifications for esHMX (address `0x83d6c8c06ac276465e4c92e7ac8c23740f435140`) and ARB (address `0x912ce59144191c1204e64559fe8253a0e49e6548`) tokens

## 3. Step-by-step calculation

### Component A: Token incentive event collection
- **Purpose**: Capture all token incentive claim events from HMX reward contracts
- **Logic**: Parse `LogHarvest` events from six different reward distribution contracts on Arbitrum. Each event represents a user claiming their earned trading incentives. Extract the `pendingRewardAmount` field which contains the token amount being claimed, along with the recipient's `address`. Map each reward contract to its corresponding token type - most contracts distribute esHMX tokens except FeedableARBRewarder which distributes ARB tokens. Classify all rewards under the 'Perpetual trading' business line and 'derivatives' market sector since these are trading incentives for perpetual futures.
- **Key fields**: `pendingRewardAmount` (token incentive amount), `address` (recipient account), `block_timestamp` (claim time), `transaction_hash` and `log_index` (event identifiers)

### Component B: Daily aggregation and classification
- **Purpose**: Organize token incentive claims by day while preserving granular details
- **Logic**: Truncate event timestamps to daily boundaries to create consistent time periods. Maintain account-level granularity to track individual recipient addresses and their claimed amounts. Preserve token type information to distinguish between esHMX and ARB token incentives. Apply consistent business categorization with 'perpetual' business segment and extract version information from the data source schema naming convention.
- **Key fields**: `timestamp` (truncated to day), `account_address` (recipient), `token_address` (esHMX or ARB), `amount` (token incentive amount), business classification fields

### Final aggregation
- **Combining components**: Sum all token incentive amounts by day, maintaining separation between different token types and recipient accounts for transparency
- **Currency conversion**: Convert token amounts to USD using end-of-day price feeds, applying proper decimal corrections based on each token's specification (18 decimals for both esHMX and ARB)
- **Time aggregation**: Use daily time boundaries with day-level timestamp truncation to create consistent reporting periods
- **Final calculation**: The metric represents the total USD value of all token incentives claimed on each day across all HMX reward programs, with zero-filling applied for days with no incentive claims to maintain time series continuity

*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