Liquidity providers deposit funds into Perpetual Protocol to earn a share of trading fees (supply-side fees). Perpetual Protocol leverages Uniswap v3's architecture as a pricing engine, enabling traders to access up to 10x leverage. Perpetual Protocol also offers Hot Tub vaults, which operate trading strategies that generate yield from arbitrage profits. 

Perpetual Protocol is an open-source and non-custodial exchange for perpetual contracts built on Optimism. Perpetual Protocol was founded by Shao-Kang Lee & Yenwen Feng and launched in 2019.

PERP token holders own and govern the protocol. Token holders can boost their governance power and earn 15% of trading fees paid by traders (revenue) by locking PERP into vote-escrowed PERP (vePERP). Perpetual Protocol's investors include CMS Holdings, Binance Labs, and Mechanism Capital.

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Perpetual Protocol

# Perpetual Protocol Token incentives Methodology

## 1. Overview

Token Incentives for Perpetual Protocol measures the total value of PERP tokens distributed to users as rewards through the protocol's liquidity mining programs. This metric captures the dollar value of token-based incentives paid out to participants who provide liquidity to the protocol, helping quantify the protocol's investment in user acquisition and retention through token rewards.

## 2. Data sources

- **Blockchain events**: Parsed Optimism blockchain `Claimed` events from the PerpLiquidityMining contract that record when users claim PERP token rewards
- **Token contract data**: PERP token contract interactions and metadata on Optimism network
- **External data**: End-of-day price feeds for PERP token to enable USD conversion
- **Token metadata**: Token decimal precision data for proper amount calculation (PERP uses 18 decimals)

## 3. Step-by-step calculation

### Component A: Token claim extraction
- **Purpose**: Identifies and extracts all PERP token claims from liquidity mining rewards
- **Logic**: Processes parsed `Claimed` events from the PerpLiquidityMining contract on Optimism. Each event represents a user claiming PERP token rewards from the liquidity mining program. The `balance` field contains the raw token amount being claimed. Events are deduplicated using transaction hash and log index to ensure each claim is counted only once.
- **Key fields**: `block_timestamp` for timing, `address` for the claiming user, `balance` for the raw token amount, plus transaction identifiers for deduplication

### Component B: Business classification and metadata
- **Purpose**: Categorizes token incentives within Token Terminal's business framework
- **Logic**: All PERP token claims are classified under the "Perpetual trading" business line and "derivatives" market sector, with "perpetual" as the business segment. The protocol version is set to "v2" and the token address is mapped to the PERP token contract address on Optimism.
- **Key fields**: `business_line`, `market_sector_id`, `business_segment_id`, `version`, and `token_address` for proper categorization

### Component C: Daily aggregation and time boundaries
- **Purpose**: Aggregates individual claims into daily totals
- **Logic**: Token claims are grouped by day using timestamp truncation to daily boundaries. All claims occurring within the same calendar day are summed together to calculate the total daily token incentives distributed.
- **Key fields**: `timestamp` truncated to day level, `token_incentives` as the aggregated daily amount

### Final aggregation
- **Combining components**: Individual token claims are summed by day to create daily token incentive totals
- **Currency conversion**: Raw token amounts are converted from wei (18-decimal precision) to token units, then converted to USD using end-of-day PERP token prices
- **Time aggregation**: Daily boundaries are applied consistently, with any missing days filled with zero values using a forward-fill strategy
- **Final calculation**: The final metric represents the total USD value of PERP tokens distributed as incentives each day, calculated as the sum of all claimed token amounts multiplied by the end-of-day PERP token price

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

Value of native tokens distributed as incentives.

Perpetual ProtocolPERP

Token incentives

Token incentives

Competitive landscape

Chain breakdown