# Morpho Optimizers Token incentives Methodology

## 1. Overview

Token incentives measures the value of native assets distributed to supply-side and demand-side users of Morpho Optimizers. These incentives are distributed to compensate and bootstrap liquidity within the protocol's optimizer vaults. Legacy incentives (market rewards) are distributed directly via the universal rewards distributor contract, while current incentives (vault rewards) are routed through Merkl via the Angle distributor contract.

## 2. Data sources

- **Blockchain events**: `Claimed` events from `UniversalRewardsDistributor` contracts and ERC-20 token transfers from the Morpho rewards multisig address to the Angle distributor contract, covering Ethereum and Base
- **External data**: Asset metadata for decimal normalization and end-of-day price feeds for USD conversion

## 3. Step-by-step calculation

### Component A: Legacy and market rewards extraction

- **Purpose**: Capture legacy token incentives distributed directly to users
- **Logic**: `Claimed` events are parsed from `UniversalRewardsDistributor` contracts on Ethereum and Base. The reward asset address and the distributed amount are extracted from each event.
- **Key fields**: `reward` (asset address), `amount` (incentive quantity)

### Component B: Current vault rewards extraction

- **Purpose**: Capture current token incentives routed through Merkl
- **Logic**: ERC-20 token transfers on Ethereum are filtered where the sender is the Morpho rewards multisig address and the recipient is the Angle distributor contract. The transferred asset address and value are extracted.
- **Key fields**: `token_address` (asset address), `value` (incentive quantity)

### Component C: Decimal normalization and USD conversion

- **Purpose**: Normalize incentive amounts and convert them to USD
- **Logic**: Extracted incentive amounts are normalized by joining with asset metadata and dividing by the asset's decimal precision. The normalized amounts are then multiplied by end-of-day asset prices to determine the USD value of the incentives.
- **Key fields**: `decimals` (decimal precision), `price_usd` (asset price)

### Component D: Aggregation and finalization

- **Purpose**: Aggregate daily token incentives and apply data integrity checks
- **Logic**: Normalized USD values are aggregated by day, chain, and product. Missing days are zero-filled to ensure continuous daily data, and chain availability filters are applied to exclude data past archival limits.
- **Key fields**: `timestamp` (daily granularity), `chain_id` (chain identifier), `product_id` (product identifier)

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

Value of native tokens distributed as incentives.

Token incentives

Lending

Lenders can earn on Morpho using Morpho Vaults, noncustodial simple to use lending vaults that optimize yields for depositors. Borrowers can borrow any assets directly from Morpho Markets. Developers and businesses can use different parts of Morpho’s permissionless infrastructure to build any custom use case or application.

Morpho is an open, efficient, and resilient platform that allows anyone to earn yield and borrow assets. At the same time, developers or businesses can create markets, curate vaults, and build a range of applications on its flexible, immutable infrastructure.

MORPHO tokenholders own and govern the protocol. They currently do not take a cut of the interest and third-party token incentives earned by lenders (revenue). Morpho's investors include a16z, Coinbase Ventures, Semantic Ventures, etc.

Morpho Optimizers

Token incentives

Token incentives

Chain breakdown