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# LayerZero Buybacks Methodology

## 1. Overview

The LayerZero ZRO buybacks metric measures the daily USD value of ZRO tokens purchased by LayerZero using revenue generated from Stargate operations. This metric tracks LayerZero's token buyback program, where Stargate protocol revenue is used to purchase ZRO tokens from the market and transfer them to LayerZero's treasury account. The buybacks represent a key mechanism for value distribution to ZRO token holders and protocol sustainability.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum `Transfer` events from the ZRO token contract
- **Token transfers**: Ethereum token transfer records filtered for specific recipient and token addresses
- **External data**: End-of-day price feeds for ZRO token USD valuation
- **Token metadata**: Token decimal information for accurate amount calculations

## 3. Step-by-step calculation

### Component A: ZRO transfer identification
- **Purpose**: Identifies ZRO token transfers that represent LayerZero buybacks
- **Logic**: Filters Ethereum token transfer events for the ZRO token contract address `0x6985884c4392d348587b19cb9eaaf157f13271cd` where the recipient address is LayerZero's OneSig account `0x6ac55e733dff03a54251670df0667774e8f7d28f`. These transfers represent ZRO tokens purchased with Stargate revenue and moved to LayerZero's treasury. The system captures the transfer `value`, `block_timestamp`, and `transaction_hash` for each qualifying transfer.
- **Key fields**: `value` (raw token amount), `block_timestamp` (transaction timing), `token_address` (ZRO contract), `to_address` (LayerZero account)

### Component B: Daily aggregation
- **Purpose**: Aggregates individual ZRO transfers into daily buyback totals
- **Logic**: Groups all identified ZRO transfers by day using timestamp truncation to daily boundaries. Sums the `amount_sent` field to calculate total daily ZRO buybacks. Maintains chain, product, and token address dimensions for proper categorization.
- **Key fields**: `timestamp` (daily boundary), `buybacks` (sum of daily transfers), `chain_id` (ethereum), `product_id` (LayerZero V2)

### Component C: USD conversion and decimal correction
- **Purpose**: Converts raw token amounts to standardized USD values
- **Logic**: Applies the standard Token Terminal conversion process that retrieves end-of-day price feeds for ZRO tokens and multiplies by the daily buyback amounts. Corrects for token decimal places to ensure accurate value calculations. The conversion uses the appropriate decimal precision for ZRO tokens and applies market prices from the transfer date.
- **Key fields**: `buybacks` (converted to USD), price data from external feeds, decimal-corrected amounts

### Final aggregation
- **Combining components**: The daily aggregated ZRO transfers are processed through USD conversion, then finalized with standardization logic
- **Currency conversion**: USD conversion uses end-of-day ZRO token prices multiplied by decimal-corrected transfer amounts
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with forward-fill gap filling strategy to ensure continuous time series
- **Final calculation**: The final metric represents the daily USD value of ZRO tokens transferred to LayerZero's treasury account, representing buybacks funded by Stargate protocol revenue. Chain availability filtering ensures only periods with reliable data are included in the final results.

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

Daily USD value of tokens repurchased from the open market.

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Buybacks

Buybacks

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