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

Level Finance is a non-custodial exchange for spot and perpetual contracts built on BNB Chain. Level Finance was founded by an anonymous team and was launched in December 2022.

LVL tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

governance

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Derivative exchanges

Level Finance

# Level Finance Token incentives Methodology

## 1. Overview

Token incentives represents the USD value of tokens distributed as rewards to Level Finance protocol users. Level Finance operates a dual-token incentive system using LVL (Level) and LGO (Level Governance) tokens to reward users for various protocol activities including farming, staking, and referrals. The metric captures all incentive distributions across protocol versions and supported chains, converting token amounts to USD values for standardized reporting.

## 2. Data sources

The calculation uses the following raw data sources:
- **Level Finance smart contract events**: Parsed event logs from Level Finance protocol contracts across BSC and Arbitrum chains, including `LevelMaster_Harvest_event`, `LyLevel_Claimed_event`, `LevelMasterv2_Harvest_event`, `LevelReferralController_Claimed_event`, `LevelReferralControllerv2_Claimed_event`, and `LevelStake_RewardsClaimed_event`
- **Token metadata**: Token reference data containing symbols, contract names, and decimal specifications for LVL and LGO tokens
- **End-of-day price feeds**: CoinGecko daily market data providing USD prices for LVL and LGO tokens

## 3. Step-by-step calculation

### Component A: Token incentive event extraction
- **Purpose**: Extracts raw token incentive claim events from Level Finance smart contracts across multiple versions and chains
- **Logic**: Queries parsed smart contract event logs for specific incentive-related events across Level Finance v1 (BSC only) and v2 (BSC and Arbitrum). For LVL token incentives, captures `LevelMaster_Harvest_event`, `LyLevel_Claimed_event`, `LevelMasterv2_Harvest_event`, `LevelReferralController_Claimed_event`, and `LevelReferralControllerv2_Claimed_event`. For LGO token incentives, captures `LevelStake_RewardsClaimed_event` from v1 BSC only. Events with `amount` parameters use the `amount` field, while events with `reward` parameters use the `reward` field
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for event identification, `address` as the recipient account, raw token amounts from either `amount` or `reward` parameters, hardcoded token addresses and CoinGecko IDs for LVL and LGO tokens

### Component B: Token metadata enrichment and decimal correction
- **Purpose**: Enriches incentive events with token metadata and normalizes amounts to standard decimal units
- **Logic**: Joins incentive events with token metadata using chain and token address to obtain token symbols and contract names. Applies decimal corrections to normalize raw token amounts from blockchain units to standard decimal representations using token-specific decimal places. Truncates block timestamps to daily boundaries for time aggregation
- **Key fields**: `symbol` from token metadata as both `contract_name` and `token_symbol`, corrected `amount` values in proper decimal units, `timestamp` truncated to day level

### Component C: USD conversion
- **Purpose**: Converts corrected token amounts to USD values using end-of-day pricing
- **Logic**: Joins decimal-corrected token incentives with CoinGecko daily market data, matching on `coingecko_id` and daily `timestamp`. Multiplies corrected token amounts by corresponding USD prices to get final USD values for incentives distributed
- **Key fields**: `price_usd` from CoinGecko data, final `amount` in USD from multiplication of corrected token amount and price

### Final aggregation
- **Combining components**: The processing flow moves sequentially from raw event extraction to metadata enrichment to USD conversion, with each step building on the previous
- **Currency conversion**: USD conversion occurs using end-of-day CoinGecko prices matched by token CoinGecko ID and daily timestamp
- **Time aggregation**: Events are aggregated to daily level by truncating block timestamps to day boundaries
- **Final calculation**: The metric represents the total USD value of token incentives distributed to users, calculated as the sum of corrected token amounts multiplied by corresponding USD prices, with standardized schema validation and gap filling applied through the finalize macro

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

Value of native tokens distributed as incentives.

Level FinanceLVL

Token incentives

Token incentives

Competitive landscape

Chain breakdown