Liquidity providers deposit funds into Idle Finance and receive a return on investment (supply-side fees).

Idle Finance is an asset management protocol built on Ethereum. Idle Finance was founded by Matteo Pandolfi, William Bergamo & Samuele Cester and launched in 2019.

IDLE tokenholders own and govern the protocol. They currently take a cut of the total return on investment paid by liquidity providers (revenue). Idle Finance’s investors include BR Capita, Greenfield One, Gumi Cryptos, etc.

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Idle Finance

# Idle Finance Expenses Methodology

## 1. Overview

The idle expenses metric measures the daily USD value of IDLE token incentives distributed by the Idle protocol to users. This metric treats token incentive distributions as operational expenses for the protocol, providing insight into the cost of user acquisition and retention through token rewards. The calculation captures all IDLE token distributions from the protocol's incentive system and converts them to USD for consistent expense tracking.

## 2. Data sources

The metric relies on the following raw data sources:
- **Blockchain events**: Parsed Ethereum `DistributedIdle` events from the IdleDistributor contract (address `0x875773784af8135ea0ef43b5a374aad105c5d39e`)
- **Transaction data**: Ethereum transaction records containing the incentive distribution events
- **External data**: End-of-day price feeds for IDLE token USD conversion and token metadata for decimal standardization
- **Protocol metadata**: Business classification data including business line (Asset management), market sector (asset_management), and business segment (yield_aggregator) assignments

## 3. Step-by-step calculation

### Component A: Raw incentive distribution extraction
- **Purpose**: Captures all IDLE token distributions from the protocol's incentive system
- **Logic**: Extracts `DistributedIdle` events from Ethereum event logs emitted by the IdleDistributor contract. Each event contains an `idleDelta` field representing the amount of IDLE tokens distributed to users. The data is enriched with business context including classification as "Asset management" business line and "yield_aggregator" business segment, along with version information ("v4")
- **Key fields**: `block_timestamp` for timing, `transaction_hash` for event identification, `idleDelta` for distributed token amounts, and `token_address` for the IDLE token contract

### Component B: Daily aggregation and USD conversion
- **Purpose**: Aggregates distributions by day and converts to USD values
- **Logic**: Groups the raw distribution events by daily timestamps using truncation to day boundaries. Raw token amounts from the `idleDelta` field are processed through decimal correction to normalize for standard token decimal places. The corrected token amounts are then converted to USD using end-of-day price feeds for the IDLE token
- **Key fields**: `timestamp` (daily), `chain_id` (ethereum), `token_incentives` (USD value of distributions), and business classification fields

### Component C: Expense classification
- **Purpose**: Treats token incentives as protocol expenses
- **Logic**: Takes the daily USD value of token incentives and reclassifies them as `expenses`. This represents the cost to the protocol of distributing IDLE tokens as user incentives. The classification maintains all business context and temporal information from the previous steps
- **Key fields**: `expenses` (USD value, renamed from `token_incentives`), `timestamp`, `chain_id`, and `product_id`

### Final aggregation
- **Combining components**: The expense values flow directly from the token incentive calculations with no additional combining required
- **Currency conversion**: USD conversion occurs using end-of-day price feeds for IDLE tokens, with decimal correction applied to normalize token amounts before price multiplication
- **Time aggregation**: All distributions are aggregated to daily boundaries using timestamp truncation, ensuring one expense value per day per protocol configuration
- **Final calculation**: The final expense amount equals the USD value of all IDLE tokens distributed as incentives on each day, calculated as (corrected_token_amount × end_of_day_price) summed across all distribution events for that day

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

Total project operating and incentive expenses.

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Expenses

Expenses

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