Kwenta builds on top of Synthetix to create a synthetic perpetuals trading platform. Traders on Kwenta trade futures against the liquidity provided by liquidity providers on Synthetix.

Kwenta is a non-custodial exchange for perpetual contracts built on Optimism. Kwenta was born out of the Synthetix community and launched in 2022.

KWENTA tokenholders own and govern the protocol. They currently do not take a cut of the total trading fees paid by traders (revenue).

governance

github

twitter

discord

etherscan

website

Derivative exchanges

Kwenta

# Kwenta Token incentives Methodology

## 1. Overview

The KWENTA token incentives metric measures the daily USD value of KWENTA tokens distributed to users as trading rewards on the Kwenta perpetual trading platform. This metric tracks token-based incentive programs designed to reward active traders on Kwenta's derivatives platform, providing insight into the protocol's user acquisition and retention spending through token distributions.

## 2. Data sources

- **Blockchain events**: Parsed `Claimed` events from `MultipleMerkleDistributor` smart contracts on Optimism blockchain, capturing when users claim their KWENTA trading reward tokens
- **Token metadata**: Token symbol and decimal configuration data for proper amount formatting and display
- **External data**: End-of-day price feeds for USD conversion of distributed token amounts

## 3. Step-by-step calculation

### Component A: Trading reward claims extraction
- **Purpose**: Identifies and extracts KWENTA token distribution events from the blockchain
- **Logic**: Filters `Claimed` events from `MultipleMerkleDistributor` contracts on Optimism for both Kwenta v1 and v2 versions. Only includes claims for the specific KWENTA token address `0x920cf626a271321c151d027030d5d08af699456b`. Each claim event captures the recipient account address, claimed amount, and transaction metadata including block timestamp and transaction hash.
- **Key fields**: `address` (recipient account), `amount` (raw token amount claimed), `block_timestamp` (when the claim occurred), `transaction_hash` and `log_index` (for event identification)

### Component B: Token metadata enrichment
- **Purpose**: Adds token symbol information and prepares for proper decimal handling
- **Logic**: Joins the claim events with token metadata using the token address and chain information. This enrichment provides the token symbol (`KWENTA`) and decimal configuration needed for proper amount conversion.
- **Key fields**: `symbol` (token symbol), decimal configuration for amount normalization

### Component C: USD conversion and decimal correction
- **Purpose**: Converts raw blockchain token amounts to properly formatted USD values
- **Logic**: Applies decimal correction to convert raw blockchain integers to actual token amounts based on the token's decimal configuration. Then converts these token amounts to USD using end-of-day price feeds. This ensures all incentive values are expressed in a standard USD format for consistent reporting.
- **Key fields**: `token_incentives` (corrected and USD-converted token amounts)

### Final aggregation
- **Combining components**: All processed claim events are aggregated by day, account address, and protocol dimensions (chain, business line, version)
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds after applying proper decimal corrections
- **Time aggregation**: Data is truncated to daily boundaries using the claim event timestamps
- **Final calculation**: The metric represents the total USD value of KWENTA tokens claimed by each user on each day, with missing days filled with zeros to maintain complete time series continuity

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

Value of native tokens distributed as incentives.

KwentaKWENTA

Token incentives

Token incentives

Competitive landscape