Index Cooperative offers a range of token-based index products, which could be streamed, issued, and redeemed against a fee (supply-side fees).

Index Cooperative is an asset management protocol built on Ethereum. Index Cooperative was founded by Set Protocol and launched in 2020.

INDEX tokenholders own and govern the protocol. They currently take all of the total streaming fees paid by liquidity providers (revenue).

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Index Cooperative

# Index Cooperative Token incentives Methodology

## 1. Overview

Token incentives measures the daily value of INDEX tokens distributed by Index Coop as rewards to liquidity providers and stakers. This metric quantifies the cost of Index Coop's incentive programs by capturing INDEX token payments made through their staking reward contracts and converting them to USD values.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum `StakingRewards_RewardPaid` events from Index Coop v1 protocol contracts
- **Token metadata**: INDEX token contract information including decimal precision
- **External data**: End-of-day INDEX token price feeds for USD conversion
- **Contract mapping**: Predefined mapping of Index Coop staking reward contract addresses

## 3. Step-by-step calculation

### Component A: Raw incentive payment extraction
- **Purpose**: Captures all INDEX token reward payments from Index Coop staking contracts
- **Logic**: Extracts `StakingRewards_RewardPaid` events from the indexcoop_v1_ethereum source. Filters events to focus specifically on INDEX token rewards (token address `0x0954906da0bf32d5479e25f46056d22f08464cab`). Each event represents a reward payment to a liquidity provider or staker. The system categorizes these payments under the 'Asset Management' business line with 'index' business segment classification.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for event identification, `address` as the contract making the payment, and `reward` amount representing INDEX tokens distributed

### Component B: Account classification
- **Purpose**: Maps staking reward contract addresses to readable account names
- **Logic**: Joins the raw payment events with a dimension table that maps four specific Ethereum contract addresses to the account name 'Staking Rewards'. These addresses represent the smart contracts responsible for distributing INDEX token incentives to participants in Index Coop's liquidity mining programs.
- **Key fields**: `account_address` for contract identification and `account_name` set to 'Staking Rewards' for all mapped contracts

### Component C: Daily aggregation and USD conversion
- **Purpose**: Aggregates incentive payments by day and converts to USD values
- **Logic**: Truncates event timestamps to daily boundaries using timestamp truncation. Sums the total INDEX token amounts distributed per day. Applies decimal correction to ensure proper token amount representation based on INDEX token's decimal precision. Converts the corrected token amounts to USD using end-of-day INDEX token price feeds.
- **Key fields**: `timestamp` truncated to day level, `token_incentives` as the daily sum of INDEX tokens distributed, and USD-converted values after price application

### Final aggregation
- **Combining components**: The final metric combines the daily aggregated INDEX token amounts with their USD conversions, maintaining the business line categorization and account mapping from previous steps
- **Currency conversion**: USD conversion uses end-of-day INDEX token prices applied to decimally-corrected token amounts through the standard price conversion methodology
- **Time aggregation**: Data is aggregated to daily boundaries with timestamp truncation, ensuring consistent daily reporting periods
- **Final calculation**: The final metric value represents the total USD value of INDEX tokens distributed as incentives each day across all Index Coop staking reward contracts, with zero-filling applied for days with no reward distributions to maintain continuous time series data

*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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