We currently only track the Squeeth product. Overcollateralized borrowers mint Squeeth (oSQTH), a power perpetual token that tracks the price of ETH squared.

Opyn builds derivatives and options infrastructure. Opyn was founded by Nick Sawinyh, Zubin Koticha and Alexis Gauba and launched in 2019.

Opyn team & investors own and govern the protocol. They do not currently charge a fee for Squeeth mints (revenue). Opyn’s investors include Paradigm, Dragonfly Capital, etc.

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Opyn

# Opyn Expenses Methodology

## 1. Overview

Opyn expenses represent the protocol's token incentive costs. For Opyn v1, this metric is consistently zero because the protocol does not distribute token incentives to users. The calculation establishes the metric structure by following the complete data lineage from Ethereum trading activity through the protocol's fee and incentive framework, ultimately confirming that no token incentive expenses are incurred.

## 2. Data sources

- **Ethereum event logs**: Parsed `Controller_MintShort_event` logs from the Opyn v1 Controller contract, capturing Squeeth option minting transactions
- **Token metadata**: Token decimal information for the oSQTH token to ensure proper amount formatting
- **End-of-day price feeds**: Daily USD price data for currency conversion in the underlying trading volume calculations

## 3. Step-by-step calculation

### Component A: Trading activity extraction
- **Purpose**: Extract base trading activity from Opyn v1 Squeeth minting events to establish the protocol's operational timeline
- **Logic**: Filter Ethereum event logs for `Controller_MintShort_event` activities from the Opyn v1 Controller contract. Each event represents a user minting short Squeeth positions. Extract key transaction details including block timestamp, transaction hash, log index, user address, and minted token amounts. Classify all activities as options trading in the derivatives market sector. Set the token address to the oSQTH Squeeth token address and version to 'v1'
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for event identification, `address` for user account, `amount` for minted token quantity

### Component B: Trading volume calculation  
- **Purpose**: Convert minting activities into daily USD trading volumes to establish the metric timeline structure
- **Logic**: Aggregate minting events by day using timestamp truncation. Apply decimal correction using oSQTH token metadata to normalize amounts to standard decimal places. Convert token amounts to USD using end-of-day price feeds matched to the event date. Group results by day, chain, and product identifiers to create daily volume records
- **Key fields**: `timestamp` truncated to daily boundaries, `notional_trading_volume` in USD, `chain_id` set to 'ethereum', `product_id` for protocol identification

### Component C: Fee calculation
- **Purpose**: Establish that Opyn v1 does not charge trading fees
- **Logic**: Reference the trading volume timeline structure and systematically set fees to 0 for all time periods and chain combinations. This reflects Opyn v1's business model where users pay no explicit trading fees for minting Squeeth positions
- **Key fields**: `fees` set to 0, maintaining the same timestamp and identifier structure as trading volume

### Component D: Token incentives calculation
- **Purpose**: Establish that Opyn does not distribute token incentives
- **Logic**: Reference the fee calculation timeline and systematically set token incentives to 0 for all time periods. This reflects that Opyn v1 does not have a token incentive program or liquidity mining rewards for users
- **Key fields**: `token_incentives` set to 0, maintaining consistent temporal and chain structure

### Final aggregation
- **Combining components**: Take the token incentives values (which are 0) and relabel them as expenses since token incentives represent the protocol's primary expense category
- **Currency conversion**: No additional currency conversion needed as the underlying values are zero
- **Time aggregation**: Maintain daily time boundaries established in the trading volume calculation
- **Final calculation**: Expenses equal token incentives, which equals 0 for all time periods, indicating Opyn v1 has no token incentive expenses

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

Total project operating and incentive expenses.

OpynOSQTH

Expenses

Expenses

Competitive landscape

Chain breakdown