Hop allows users to send tokens from one rollup to another almost immediately without having to wait for the rollup’s challenge period. Liquidity providers deposit funds into Hop AMM pools and receive trading fees from traders (supply-side fees).

Hop is a scalable rollup-to-rollup general token bridge. Hop was co-founded by Christopher Whinfrey and launched in 2021.

HOP tokenholders own and govern the protocol. They currently take a cut of the total transfer fees paid by users (revenue). Hop’s investors include 1confirmation, Infinite Capital, etc.

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Hop Protocol

# Hop Protocol Token incentives Methodology

## 1. Overview

Token incentives measures the total USD value of token rewards distributed daily by the Hop protocol to liquidity providers and stakers. This metric tracks the protocol's spending on user incentives across multiple chains and reward tokens, providing insight into the cost of acquiring and retaining liquidity. The calculation aggregates `RewardPaid` events from Hop's staking contracts across different chains, converts amounts to USD, and aggregates by day.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Blockchain events**: Parsed `RewardPaid` events from Hop protocol's StakingRewards contracts deployed on Arbitrum, Polygon, Gnosis, and Optimism
- **Token reward types**: HOP token rewards (primary protocol token), GNO token rewards (Gnosis chain native token), and OP token rewards (Optimism chain native token)
- **External data**: End-of-day token price feeds for HOP, GNO, and OP tokens to enable USD conversion
- **Token metadata**: Token decimal information for proper amount conversion from raw blockchain units

## 3. Step-by-step calculation

### Component A: Reward event extraction
- **Purpose**: Extract all token reward payments made to users across Hop's staking contracts
- **Logic**: Collect `RewardPaid` events from six different StakingRewards contract types across four chains. Each event contains the recipient address, reward amount, block timestamp, and transaction details. The system tracks rewards in HOP tokens on Arbitrum, Polygon, and Gnosis, GNO tokens on Gnosis, HOP tokens on Optimism, and OP tokens on Optimism. Each reward is tagged with version information (v1), the token's home chain for price lookup, and the actual chain where the reward was distributed.
- **Key fields**: `block_timestamp` for timing, `address` for recipient identification, `reward` amount in raw token units, `transaction_hash` for deduplication, `token_symbol` and `token_address` for price conversion

### Component B: Daily aggregation and categorization
- **Purpose**: Group rewards by day and apply business categorization for consistent reporting
- **Logic**: Truncate all timestamps to daily boundaries and aggregate reward amounts by day, recipient address, chain, and token. Apply standardized business categorization by setting business line to 'Bridging', market sector to 'bridges', and business segment to 'mint_and_burn'. The version field is preserved from the source contracts to track protocol versions.
- **Key fields**: `timestamp` truncated to day, `account_address` for recipient tracking, `chain` and `real_chain` for proper chain attribution, business categorization fields

### Component C: USD conversion and decimal correction
- **Purpose**: Convert raw token amounts to human-readable USD values
- **Logic**: Apply the `convert_to_usd_and_correct_decimals` macro to transform raw blockchain token amounts into properly formatted USD values. This process looks up the appropriate token decimal count (e.g., 18 for HOP, GNO, and OP), divides the raw amount by 10^decimals to get the human-readable token amount, then multiplies by the end-of-day USD price to get the final USD value. Price lookups use the token's home chain identifier.
- **Key fields**: `token_incentives` converted to USD, with original token amounts properly adjusted for decimals

### Component D: Chain standardization
- **Purpose**: Ensure consistent chain attribution for cross-chain reward tracking
- **Logic**: Replace the token's home chain identifier with the actual chain where the reward was distributed. This ensures rewards are attributed to the correct chain in the final metrics, even when the reward token originates from a different chain (e.g., HOP tokens distributed on Arbitrum should be attributed to Arbitrum, not Ethereum where HOP is based).
- **Key fields**: `chain_id` set to the actual distribution chain rather than token home chain

### Final aggregation
- **Combining components**: Sum all USD-converted reward amounts by day and chain, preserving recipient-level detail while ensuring proper business categorization
- **Currency conversion**: USD conversion occurs using end-of-day price feeds matched to the reward token's home chain address
- **Time aggregation**: Daily boundaries are applied consistently across all chains and reward types using timestamp truncation
- **Final calculation**: The metric represents the total USD value of token incentives distributed daily, calculated as the sum of (reward_amount_in_tokens ÷ 10^token_decimals × end_of_day_usd_price) across all reward events for each day and chain combination. The finalize metric macro ensures schema compliance, applies zero-filling for days without rewards, and validates chain availability.

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

Value of native tokens distributed as incentives.

Hop ProtocolHOP

Token incentives

Token incentives

Competitive landscape

Chain breakdown