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).

github

twitter

discord

website

Exchanges (DEX)

Katana (Ronin)

# Katana Token incentives Methodology

## 1. Overview

Token incentives represent rewards distributed by protocols to users for specific activities like trading, providing liquidity, or participating in governance. For Katana, a decentralized exchange built on the Ronin blockchain, token incentives are set to zero as the protocol does not distribute token-based rewards to users. While the underlying infrastructure calculates trading fees from actual DEX activity, the token incentives metric consistently returns 0 across all time periods.

## 2. Data sources

The methodology utilizes several data sources, though the final calculation overrides them with zero values:

- **Blockchain events**: Parsed Ronin blockchain `Swap` events from Katana v1 pair contracts capturing individual trades
- **Contract events**: `PairCreated` events from Katana factory contracts identifying trading pairs and fee tiers  
- **Transaction data**: Ronin transaction records providing user addresses and transaction context
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal precision
- **Manual configuration**: Hardcoded token definitions for tokens not in standard registries (specifically SLP token)

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Identifies all valid trading pairs on Katana with their associated fee tiers and token metadata
- **Logic**: Processes `PairCreated` events from Katana factory contracts to extract trading pair addresses, token addresses for both tokens in the pair, and assigns a fixed fee tier of 0.3%. Joins with token metadata to obtain decimal precision and symbols for both tokens, with fallback to manual token definitions for tokens not in standard registries. Creates human-readable pair names by combining token symbols.
- **Key fields**: `account_address` (pair contract), `token0_address`, `token1_address`, `fee_tier`, `token0_decimals`, `token1_decimals`, `account_name`

### Component B: Trade event processing  
- **Purpose**: Extracts individual trades from Katana swap events and calculates token amount changes
- **Logic**: Processes `Swap` events from pair contracts to identify trades. Calculates net token flow by subtracting output amounts from input amounts for both tokens in each swap. Links to transaction data to identify the user initiating each trade. Classifies all activity as DEX trading under the exchanges market sector.
- **Key fields**: `block_timestamp`, `transaction_hash`, `user_address`, `account_address`, `token0_amount`, `token1_amount`

### Component C: Volume aggregation and USD conversion
- **Purpose**: Aggregates trading activity into daily volumes with USD valuation
- **Logic**: Groups trades by day and trading pair, summing absolute token amounts after correcting for decimal precision. Converts token amounts to USD using end-of-day price feeds for both tokens in each pair. Applies anti-manipulation logic by taking the lesser USD value between the two tokens to prevent inflated volumes from price discrepancies or manipulation attempts.
- **Key fields**: `timestamp`, `trading_volume`, `token0_amount`, `token1_amount`, corrected for decimals and converted to USD

### Component D: Fee calculation infrastructure
- **Purpose**: Calculates fees generated from trading activity (used as reference point for token incentives)
- **Logic**: Multiplies daily trading volumes by the fee tier percentage to determine fees collected by the protocol. Uses the established 0.3% fee tier applied consistently across all trading pairs. Aggregates fees by day, chain, and product classification.
- **Key fields**: `fees` calculated as trading volume multiplied by fee tier percentage

### Final aggregation
- **Combining components**: The token incentives calculation bypasses all trading data processing and directly assigns zero values to all time periods, using the fee calculation timeframe as a template for consistent schema structure
- **Currency conversion**: Not applicable as values are hardcoded to zero
- **Time aggregation**: Maintains daily granularity matching the underlying fee calculation infrastructure 
- **Final calculation**: Token incentives equals zero for all time periods and trading pairs, implemented through a hardcoded override that sets the incentives value to 0 regardless of trading activity levels. The methodology applies schema validation and gap-filling to ensure consistent data structure across all time periods.

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

Value of native tokens distributed as incentives.

Katana (Ronin)

Token incentives

Token incentives

Competitive landscape