Users deposit yield-bearing tokens into Pendle Markets. The yield-bearing token is wrapped and split up into its principal and yield-bearing components, which allows users to execute yield-trading strategies (i.e. earn fixed yield, long yield). Traders pay a swap fee whenever yield-bearing tokens are swapped with its wrapped, principal, or yield-bearing component tokens.

Pendle is a permissionless yield-trading protocol built on Ethereum, HyperEVM, Arbitrum, BNB Chain, Optimism, Base, Berachain, Sonic, Plasma, Monad, X Layer, and Robinhood Chain. Pendle was founded by TN Lee and was launched in 2021.

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

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Pendle

# Pendle Token incentives Methodology

## 1. Overview

Token incentives represents the value of PENDLE tokens distributed as rewards to Pendle markets through the protocol's gauge voting mechanism. This metric captures the monetary value of incentive programs designed to encourage liquidity provision and participation in Pendle's yield trading markets. The calculation aggregates incentive distributions across all supported blockchain networks and converts them to USD values for standardized reporting.

## 2. Data sources

The calculation relies on the following data sources:
- **Blockchain events**: Parsed `GaugeController_ReceiveVotingResults` events from Pendle V1 contracts deployed across 9 blockchain networks (Arbitrum, Base, Berachain, BSC, Ethereum, HyperEVM, Optimism, Plasma, and Sonic)
- **Token price feeds**: End-of-day price feeds for PENDLE tokens to enable USD conversion
- **Token metadata**: Token decimal precision information for accurate amount calculations
- **Chain configuration**: Chain availability filters to ensure only active blockchain networks are included

## 3. Step-by-step calculation

### Component A: Event extraction and processing
- **Purpose**: Extract and standardize PENDLE token incentive distribution events from multiple blockchain networks
- **Logic**: The calculation processes `GaugeController_ReceiveVotingResults` events from Pendle V1 gauge controller contracts across 9 supported chains. Each event contains an array field `pendleAmounts` that holds the individual incentive amounts distributed to different markets. The system unnests this array to create individual records for each incentive amount, preserving the original event metadata including block timestamp, transaction hash, and contract address. Each record is classified with standardized business dimensions: 'Exchange AMM' as the business line, 'derivatives' as the market sector, and 'perpetual' as the business segment
- **Key fields**: Important fields include `block_timestamp` for time-based aggregation, `account_address` identifying the recipient contract, `amount` containing the raw token incentive value, and `token_address` specifying the PENDLE token contract for each chain

### Component B: Daily aggregation and USD conversion  
- **Purpose**: Aggregate incentive amounts by day and convert to standardized USD values
- **Logic**: Raw token amounts are first grouped by daily time boundaries using timestamp truncation to the day level. The system then applies USD conversion using end-of-day price feeds matched to each chain's PENDLE token contract address. During conversion, the amounts are adjusted for proper decimal precision based on the token's decimal configuration to ensure accurate monetary values
- **Key fields**: Key outputs include `timestamp` truncated to daily boundaries, `token_incentives` as the raw token amount, and the USD-converted equivalent after decimal correction

### Final aggregation
- **Combining components**: The daily aggregated incentive amounts are processed through the finalization macro which validates dimensional identifiers and ensures data consistency across all chain sources
- **Currency conversion**: USD conversion occurs using end-of-day price feeds specific to each chain's PENDLE token contract, with automatic decimal precision correction based on token metadata
- **Time aggregation**: All data is aggregated to daily boundaries, with timestamps truncated to the start of each day
- **Final calculation**: The final metric value represents the total USD value of PENDLE token incentives distributed to markets on each day, with zero-filling applied for days with no incentive distributions and chain availability filtering to exclude inactive blockchain networks

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

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

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