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 Token incentives Methodology

## 1. Overview

Token incentives measures the USD value of governance tokens distributed by the Idle protocol to users as rewards or incentives. This metric quantifies the protocol's spending on user acquisition and retention through token-based rewards. The calculation captures IDLE governance token distributions from the protocol's official distribution contract and converts them to daily USD values.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum `DistributedIdle` events from the Idle protocol's IdleDistributor contract
- **Token metadata**: IDLE governance token information including contract address and decimal precision (18 decimals)
- **External data**: End-of-day price feeds for USD conversion of IDLE tokens
- **Protocol metadata**: Business classification data (asset management sector, yield aggregator segment)

## 3. Step-by-step calculation

### Component A: Raw incentive extraction
- **Purpose**: Extracts individual IDLE token distribution events from the Ethereum blockchain
- **Logic**: Queries parsed `DistributedIdle` events from the IdleDistributor contract on Ethereum. Each event represents a distribution of IDLE governance tokens to users as incentives. The `idleDelta` field from these events contains the raw token amount distributed. Events are filtered to only include valid distributions and deduplicated to prevent double-counting
- **Key fields**: `block_timestamp` for timing, `transaction_hash` for transaction context, `idleDelta` for the raw token amount distributed

### Component B: Data structuring and classification
- **Purpose**: Transforms raw blockchain events into standardized protocol metrics format
- **Logic**: Converts block timestamps to daily granularity by truncating to day boundaries. Applies protocol-specific metadata including business line classification as "Asset management", market sector as "asset_management", and business segment as "yield_aggregator". Hardcodes the IDLE token address and sets version as "v4" to reflect the current protocol version
- **Key fields**: `timestamp` (daily), `chain_id` (ethereum), `token_address` (IDLE token contract), `amount` (raw token amount)

### Component C: USD conversion and decimal correction
- **Purpose**: Converts raw token amounts to USD values with proper decimal handling
- **Logic**: Applies Token Terminal's standard USD conversion process using end-of-day price feeds for IDLE tokens. Corrects for the token's 18-decimal precision to ensure accurate value calculations. The conversion uses the closing price on each day to maintain consistency with other Token Terminal metrics
- **Key fields**: `token_incentives` (USD-denominated value), `timestamp` (daily granularity)

### Final aggregation
- **Combining components**: All processing is done at the individual event level, then aggregated by day to produce daily totals of token incentives distributed
- **Currency conversion**: USD conversion occurs using end-of-day IDLE token prices, with amounts properly adjusted for the token's 18-decimal precision
- **Time aggregation**: Daily boundaries are established using timestamp truncation, with all events within a day summed together
- **Final calculation**: The final metric value represents the total USD value of IDLE governance tokens distributed as incentives on each day, calculated by summing all individual distribution events converted to USD using end-of-day prices and corrected for decimal precision

*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

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