github

twitter

website

Exchanges (CEX)

# OKX Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by OKX to operate X Layer. The cost of revenue is captured, which consists of the L1 settlement and data availability fees paid to Ethereum to secure transactions. Token incentives are also included in this metric but are currently set to zero as no native asset incentives are distributed. Expenses are utilized to evaluate the economic sustainability and net profitability of X Layer.

## 2. Data sources

- **Blockchain events**: Transactions executed on Ethereum by X Layer batcher wallets or sent to the Polygon CDK rollup contract, covering Ethereum
- **External data**: End-of-day price feeds for ETH

## 3. Step-by-step calculation

### Component A: L1 settlement fee extraction

- **Purpose**: Capture the gas and blob fees paid on Ethereum for X Layer settlement.
- **Logic**: Transactions on Ethereum are filtered to identify settlement activity across two distinct eras. For the OP Stack era, transactions sent by designated batcher wallets are selected. For the earlier Polygon CDK Validium era, transactions sent to the Polygon CDK rollup contract are selected. For each transaction, the gas fee is calculated by multiplying the gas used by the effective gas price, and the blob fee is calculated by multiplying the blob gas used by the blob gas price. These two components are summed and normalized by decimal precision to determine the total L1 settlement amount in ETH.
- **Key fields**: `gas_price`, `blob_gas_price`, `gas_used_amount`, `blob_gas_used_amount`

### Component B: USD conversion and daily aggregation

- **Purpose**: Normalize settlement costs to USD and aggregate them daily.
- **Logic**: The daily sum of L1 settlement fees in ETH is multiplied by the end-of-day price of ETH. This results in the daily cost of revenue in USD.
- **Key fields**: `block_timestamp`, `l1_settlement_amount`, `price_usd`

### Component C: Token incentives calculation

- **Purpose**: Determine the value of token incentives distributed.
- **Logic**: Token incentives for X Layer are set to a constant value of zero, reflecting that no native asset incentives are currently distributed by the protocol.
- **Key fields**: `token_incentives`

### Component D: Total expenses aggregation

- **Purpose**: Combine cost of revenue and token incentives to calculate total expenses.
- **Logic**: Total expenses are calculated by summing the daily cost of revenue (L1 settlement fees in USD) and the daily token incentives (which are zero). The final values are aggregated at a daily granularity using UTC day boundaries.
- **Key fields**: `cost_of_revenue`, `token_incentives`

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

Total project operating and incentive expenses.

OKXOKB

Expenses

Expenses

Competitive landscape

Chain breakdown