# LayerZero V2 Buybacks Methodology

## 1. Overview

Buybacks are measured as the total value of ZRO assets repurchased by the protocol from the open market. For LayerZero V2, these repurchases are funded through revenue generated by Stargate. All repurchased assets are transferred to a designated LayerZero OneSig account. This mechanism is utilized to support the value of the protocol's native asset by reducing circulating supply or consolidating protocol-owned liquidity.

## 2. Data sources

- **Blockchain events**: ERC-20 token transfers from ZRO asset contracts, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Asset transfer tracking

- **Purpose**: Identify the volume of ZRO assets repurchased and transferred to the protocol treasury.
- **Logic**: ERC-20 token transfers are parsed to isolate movements of the ZRO asset. These transfers are filtered to include only those where the recipient address matches the LayerZero OneSig account. These transactions represent the execution of the monthly buyback program funded by Stargate revenue.
- **Key fields**: `token_address` (ZRO identification), `amount_sent` (quantity of assets repurchased), `to_address` (LayerZero OneSig account identification)

### Component B: Value normalization and aggregation

- **Purpose**: Convert repurchased asset quantities into a standardized USD valuation.
- **Logic**: Repurchased ZRO amounts are normalized by decimal precision. Normalized quantities are multiplied by end-of-day price feeds to determine the USD value at the time of the transaction. Data is aggregated to a daily granularity using UTC day boundaries.
- **Key fields**: `block_timestamp` (timing), `buybacks` (USD-denominated value)

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

Daily USD value of tokens repurchased from the open market.

Buybacks

Interoperability

LayerZero uses a decentralized network of Validator Nodes to facilitate secure and fast communication between different blockchains.

LayerZero allows users to send and receive messages between different blockchains, and to bridge tokens between different blockchains.

LayerZero is a cross-chain interoperability protocol that enables secure and fast communication between different blockchains.

LayerZero v2

Buybacks

Buybacks

Chain breakdown