Liquidity providers deposit funds into Katana and receive trading fees from traders (supply-side fees).

Katana is a non-custodial exchange protocol built on Ronin. Katana was founded by Sky Mavis and launched in 2021.

The Ronin team own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Exchanges (DEX)

Katana (Ronin)

# Katana Expenses Methodology

## 1. Overview

The Katana expenses metric represents token incentives paid out by the protocol to users. For Katana DEX, this metric is explicitly set to zero across all time periods, indicating that the protocol does not pay token incentives to users. The calculation follows the same temporal and product structure as other Katana metrics but assigns a value of 0 to all entries.

The metric answers the business question: "How much does Katana spend on token incentives to attract users and liquidity?" The answer for Katana is consistently zero, as the protocol operates without token incentive programs.

## 2. Data sources

The underlying data infrastructure uses several blockchain and external data sources, though the final expenses values are hardcoded to zero:

- **Blockchain events**: Parsed Katana v1 `Swap` events from Ronin blockchain containing trade execution details
- **Transaction data**: Ronin blockchain transaction records providing user addresses and block timestamps  
- **Contract events**: Katana Factory `PairCreated` events that establish trading pairs and their fee structures
- **Token metadata**: Token information including decimals, symbols, and contract addresses for proper calculation formatting
- **External data**: End-of-day token price feeds for USD conversion capabilities
- **Manual token data**: Manually configured token information for tokens not available in standard metadata sources

## 3. Step-by-step calculation

### Component A: Trade data extraction
- **Purpose**: Extract and process individual swap transactions from Katana AMM
- **Logic**: Parse `Swap` events from Katana pair contracts on Ronin blockchain, extracting token amounts for both sides of each trade. Calculate net token changes by subtracting outbound amounts from inbound amounts for both `token0` and `token1`. Join with Ronin transaction records to obtain user addresses and precise block timestamps. Filter to include only valid swap transactions with proper transaction hash matching.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` representing token flows, `transaction_hash` for linking to transaction data, `log_index` for event ordering, `block_timestamp` for temporal alignment

### Component B: Trading pair configuration
- **Purpose**: Establish trading pair metadata and fee tier information
- **Logic**: Process `PairCreated` events from Katana Factory contract to identify all valid trading pairs and their configurations. Extract token addresses for both sides of each pair and associate with a standard fee tier of 0.3% (3000 basis points). Join with token metadata tables to obtain decimal precision and symbol information for proper amount calculations. Handle special cases using manually configured token data when standard metadata is unavailable.
- **Key fields**: `token0_address`, `token1_address` for pair identification, `fee_tier` set to 0.003 (0.3%), `token0_decimals`, `token1_decimals` for amount normalization, `account_name` combining token symbols

### Component C: Volume and fee calculation  
- **Purpose**: Calculate daily trading volumes and associated fees
- **Logic**: Aggregate trade events by day, applying decimal correction by dividing token amounts by 10 raised to the token's decimal places. Convert corrected amounts to USD values using end-of-day price feeds for both tokens in each pair. Apply anti-manipulation logic by taking the lesser USD value between the two tokens to prevent inflated volumes from price discrepancies. Calculate fees by multiplying the final trading volume by the pair's fee tier (0.3%). Sum all trading activity and fees by timestamp, chain, and product dimensions.
- **Key fields**: `trading_volume` in USD, `fee_tier` as multiplier, `timestamp` for daily boundaries, corrected `token0_amount` and `token1_amount`

### Component D: Token incentives determination
- **Purpose**: Calculate token incentives paid by the protocol
- **Logic**: Use the timestamp and product structure from the fee calculation as a template to ensure consistent data schema. Explicitly set all token incentive values to zero, indicating that Katana does not operate token reward programs. Maintain the same temporal grain (daily) and dimensional structure (chain, product) as other metrics for consistency.
- **Key fields**: `token_incentives` set to 0, `timestamp`, `timestamp_grain`, `product_id`, `chain_id`

### Final aggregation
- **Combining components**: The token incentives values (all zeros) are directly used as the expenses metric without further aggregation or transformation
- **Currency conversion**: No currency conversion needed as all values are zero
- **Time aggregation**: Daily boundaries maintained from the underlying fee calculation structure, ensuring consistent temporal alignment across all Katana metrics
- **Final calculation**: Expenses equals token incentives, which equals zero for all time periods and products. The `finalize_metric_expenses` macro applies standard schema validation and ensures no data gaps by filling missing periods with zero values.

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

Total project operating and incentive expenses.

Katana (Ronin)

Expenses

Expenses

Competitive landscape