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

KyberSwap is a non-custodial exchange protocol & aggregator built on Ethereum and other adjacent blockchains. KyberSwap was founded by Loi Luu and Victor Tran in 2017.

KNC tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Kyber Network raised $52 million in an ICO in 2017.

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KyberSwap

# KyberSwap Expenses Methodology

## 1. Overview

The Kyber expenses metric measures the total USD value of token incentives distributed by Kyber's liquidity reward programs on a daily basis. This metric captures the protocol's operational expenses related to liquidity mining and reward distribution across multiple blockchain networks. The calculation aggregates KNC token distributions from Kyber's reward contracts and converts them to USD to provide a comprehensive view of the protocol's incentive spending.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Blockchain events**: Parsed `RewardLocker_Vested` events from Kyber v2 contracts on Ethereum, BSC, Avalanche, and Polygon networks
- **Blockchain events**: Parsed `RewardsDistributor_Claimed` events from Kyber v3 contracts on Ethereum
- **External data**: End-of-day token price feeds for USD conversion of KNC token amounts
- **Token metadata**: Token decimal information for proper amount normalization
- **Configuration data**: Hardcoded mappings of reward contract addresses and their corresponding account names across different chains

## 3. Step-by-step calculation

### Component A: Liquidity incentive event extraction
- **Purpose**: Identifies and extracts all KNC token reward distribution events from Kyber's liquidity incentive programs
- **Logic**: The system scans blockchain event logs for specific reward distribution events across multiple Kyber protocol versions and chains. For Kyber v2, it captures `RewardLocker_Vested` events from reward locker contracts on Ethereum (`0xfab5186a194588f5ad5074bd52659302906b4522`), BSC (`0xfab5186a194588f5ad5074bd52659302906b4522`), Avalanche (`0xf530a090ef6481cfb33f98c63532e7745abab58a`), and Polygon (`0x063dd8b5a42aae93a014ce5fabb5b70474667961`). For Kyber v3, it captures `RewardsDistributor_Claimed` events from the rewards distributor contract on Ethereum (`0x5ec0dcf4f6f55f28550c70b854082993fdc0d3b2`). Each event is filtered to include only KNC token distributions using chain-specific KNC token addresses. The system extracts key information including block timestamp, transaction hash, log index, recipient address, and reward amount.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `address` (recipient), `vestedQuantity` or `claimAmounts` (reward amount), `token` or `tokens` (token address filter)

### Component B: Account categorization and business classification
- **Purpose**: Maps reward contract addresses to recognizable account names and applies business dimension classifications
- **Logic**: The extracted events are joined with a predefined dimension table that maps contract addresses to account names like 'Reward Locker' and 'Rewards Distributor'. Each event is classified with standard business dimensions including 'Exchange AMM' as business line, 'exchanges' as market sector, and 'dex' as business segment. The product ID is set to null, and the protocol version (v2 or v3) is captured for tracking.
- **Key fields**: `account_address`, `account_name`, `business_line`, `market_sector_id`, `business_segment_id`, `version`

### Component C: USD conversion and decimal correction
- **Purpose**: Converts raw token amounts to standardized USD values accounting for token decimal places
- **Logic**: Raw token amounts are processed through a conversion system that first corrects for token decimal places (KNC has 18 decimals) and then converts to USD using end-of-day price feeds. The conversion uses the timestamp of each event to match with appropriate price data. This ensures all reward amounts are expressed in comparable USD terms regardless of the original token denomination.
- **Key fields**: `amount` (raw token amount), `token_address` (for price lookup), `block_timestamp` (for price matching)

### Component D: Daily aggregation and gap filling
- **Purpose**: Aggregates individual reward events to daily totals and ensures consistent time series data
- **Logic**: Individual reward events are grouped by day using timestamp truncation to the day boundary. The system aggregates total USD amounts by chain, business dimensions, and account information. A gap-filling strategy is applied to ensure consistent daily data points, with zero values filled for days with no activity. The aggregation maintains granularity by chain to support multi-chain analysis.
- **Key fields**: `timestamp` (truncated to day), `timestamp_grain`, `chain_id`, `token_incentives` (aggregated USD amount)

### Final aggregation
- **Combining components**: The daily token incentive amounts are treated directly as expenses, with no additional transformations or adjustments
- **Currency conversion**: All amounts are already converted to USD using end-of-day price feeds matched to event timestamps
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with consistent gap-filling to ensure complete time series
- **Final calculation**: The expenses metric equals the sum of all USD-converted KNC token incentive distributions for each day, chain, and business dimension combination

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

Total project operating and incentive expenses.

KyberSwapKNC

Expenses

Expenses

Competitive landscape

Chain breakdown