Stakers deposit funds into Lido and receive a return on investment in the form of staking rewards (supply-side fees).

Lido is a non-custodial staking protocol built on Ethereum and other blockchains. Lido was founded by a pseudo-anonymous team and launched in 2020.

LDO tokenholders own and govern the protocol. They currently take a cut of the total staking rewards earned by the protocol (revenue). Lido’s investors include ParaFi Capital, Bitscale Capital, KR1, etc.

governance

github

twitter

discord

etherscan

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Liquid staking

Lido Finance

# Lido Finance Token incentives Methodology

## 1. Overview

Token incentives measures the USD value of tokens distributed by Lido as liquidity mining rewards and other incentive programs. This metric tracks the daily value of tokens given to users, liquidity providers, and ecosystem participants to encourage platform usage and liquidity provision. The calculation captures incentive distributions through Aragon Finance governance transactions and reflects Lido's evolution from LDO token rewards to stETH-based incentives over time.

## 2. Data sources

- **Ethereum blockchain events**: Parsed Aragon Finance `NewTransaction` events from Lido's governance contracts on Ethereum
- **Transaction data**: Ethereum transaction records containing token transfer details, timestamps, and recipient addresses  
- **External data**: End-of-day price feeds for LDO and stETH tokens, token metadata including decimal precision information
- **Configuration data**: Chain availability settings and business classification parameters

## 3. Step-by-step calculation

### Component A: Raw incentive event extraction
- **Purpose**: Identifies and extracts token incentive distribution events from Lido's governance system
- **Logic**: Filters Ethereum Aragon Finance `NewTransaction` events where the recipient entity matches either the rewards committee address (`0x87d93d9b2c672bf9c9642d853a8682546a5012b5`) or curve rewards address (`0x753d5167c31fbeb5b49624314d74a957eb271709`). These addresses represent the primary channels through which Lido distributes token incentives to ecosystem participants. Extracts transaction metadata including block timestamps, transaction hashes, log indices, and token amounts from the `amount` field
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for event identification, `entity` for recipient verification, `amount` for incentive quantities

### Component B: Time-based token classification
- **Purpose**: Applies business logic to handle Lido's transition from LDO to stETH incentive programs
- **Logic**: Implements conditional logic based on event timestamps relative to May 5, 2023. For events before this date, classifies incentives as LDO tokens with contract address `0x5a98fcbea516cf06857215779fd812ca3bef1b32` and account name matching the original recipient. For events after May 5, 2023, reclassifies all incentives as stETH tokens with contract address `0xae7ab96520de3a18e5e111b5eaab095312d7fe84` and standardized account name 'stETH'. This reflects Lido's strategic shift in incentive distribution methodology
- **Key fields**: `contract_name` and `account_name` for token identification, `token_address` for contract mapping, `token_incentives` for amounts

### Component C: Time aggregation and business classification
- **Purpose**: Standardizes data for daily reporting and adds protocol classification metadata
- **Logic**: Truncates block timestamps to daily boundaries using day-level precision. Assigns business classification fields including 'Liquid staking' as business line, 'liquid_staking' for market sector and business segment identifiers, version 'v1', and 'ethereum' as chain identifier. Sets timestamp grain to 'day' for consistent aggregation across the dataset
- **Key fields**: `timestamp` truncated to daily grain, `chain_id` for blockchain identification, business classification fields for categorization

### Final aggregation
- **Combining components**: Processes the classified incentive events through USD conversion using end-of-day token prices matched by token address and event date. Applies decimal corrections based on token metadata to ensure proper precision for LDO (18 decimals) and stETH (18 decimals) amounts
- **Currency conversion**: Converts native token amounts to USD using end-of-day price feeds, with automatic decimal adjustment to handle token precision differences and ensure accurate USD valuations
- **Time aggregation**: Maintains daily boundary logic with gap-filling strategy that inserts zero values for days without incentive distributions, ensuring continuous time series data for reporting and analysis
- **Final calculation**: Sums all USD-converted incentive amounts by day, token type, and classification dimensions. Applies chain availability filtering to ensure data consistency and validates against schema requirements through the finalize metric process. The result represents the total daily USD value of token incentives distributed by Lido across all programs and recipient categories

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

Value of native tokens distributed as incentives.

Lido FinanceLDO

Token incentives

Token incentives

Competitive landscape

Chain breakdown