Users complete Quests, Races, or other experiences to earn rewards.

Layer3 is a platform that allows anyone to discover web3 through interactive experiences.

L3 tokenholders own and govern the protocol. L3's investors include ParaFi Capital, Greenfield Capital, etc.

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# Layer3 Reward payouts Methodology

## 1. Overview

The Layer3 reward payouts metric measures the total USD value of tokens distributed as rewards from Layer3 escrow contracts to users on a daily basis. This metric tracks the platform's reward distribution activity across multiple blockchains, representing payments made to users for completing quests, tasks, or other platform activities. The calculation identifies legitimate Layer3 escrow contracts and measures all token outflows from these contracts as reward payouts.

## 2. Data sources

- **Layer3 contract events**: Parsed `EscrowRegistered` events from Layer3 Factory contracts across Arbitrum, Avalanche, Base, BSC, Blast, Celo, Gnosis, Optimism, Polygon, and zkSync Era blockchains
- **Token transfer data**: Parsed `Transfer` events and token transfer records from the same 10 blockchain networks
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Escrow contract identification
- **Purpose**: Identify all legitimate Layer3 escrow contracts across supported blockchains
- **Logic**: Extract distinct escrow contract addresses from `EscrowRegistered` events emitted by Layer3 Factory contracts. The `escrowAddress` field from these events represents validated escrow contracts that can distribute rewards. Each escrow address is tracked per blockchain to handle cross-chain deployments.
- **Key fields**: `escrowAddress` (the contract address), chain identifier for blockchain-specific tracking

### Component B: Reward payout detection  
- **Purpose**: Capture all token transfers originating from identified Layer3 escrow contracts
- **Logic**: Filter all token transfer events to include only those where the sender (`from_address`) matches a registered Layer3 escrow contract address. This captures reward distributions from escrow contracts to recipient addresses. The filtering uses an inner join between token transfers and the escrow registry to ensure only legitimate Layer3 reward payouts are included.
- **Key fields**: `block_timestamp` (when the payout occurred), `from_address` (escrow contract), `to_address` (reward recipient), `token_address` (reward token), `value` (payout amount), `transaction_hash` and `log_index` for deduplication

### Component C: Daily aggregation
- **Purpose**: Group reward payouts by day, blockchain, and token for consistent time series data
- **Logic**: Truncate timestamps to daily boundaries using `timestamp_trunc` function. Aggregate payout amounts by day, chain, and token address. This creates a standardized daily view of reward distribution activity across all supported blockchains.
- **Key fields**: `timestamp` (daily boundary), `chain_id` (blockchain identifier), `token_address` (reward token), `reward_payouts` (aggregated daily amount)

### Final aggregation
- **Combining components**: All daily reward payouts are processed through standardized conversion and finalization steps
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with automatic decimal correction applied based on token metadata to ensure accurate monetary values
- **Time aggregation**: Daily boundaries are consistently applied across all chains, with a zero-fill strategy used to maintain complete time series data even for days with no reward activity
- **Final calculation**: The final metric represents the total USD value of tokens distributed as rewards from Layer3 escrow contracts on each day, aggregated across all supported blockchains and token types

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

Value of incentive payouts distributed through quests or similar reward mechanisms.

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Reward payouts

Reward payouts

Competitive landscape

Chain breakdown