Liquidity providers deposit funds into Pika Protocol and receive trading fees from traders (supply-side fees).

Pika Protocol is a non-custodial exchange for perpetual contracts built on Optimism. Pika Protocol was founded by an anonymous team and was launched in 2021.

PIKA tokenholders own and govern the protocol. Pika Protocol has no private investors.

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Pika Protocol

# Pika Protocol Token incentives Methodology

## 1. Overview

This metric measures the total value of OP token incentives distributed to traders on Pika Protocol's perpetual trading platform. Token incentives represent rewards paid to users for trading activity, serving as a mechanism to bootstrap liquidity and encourage platform adoption. The calculation tracks daily distributions of OP tokens through Pika Protocol's reward system and converts them to USD values.

## 2. Data sources

- **Blockchain events**: Parsed `RewardPaid` events from Pika Protocol's VaultTokenReward smart contract on Optimism blockchain
- **Transaction data**: Optimism transaction logs containing reward distribution events with recipient addresses and amounts
- **External data**: End-of-day OP token price feeds for USD conversion and OP token metadata for decimal handling
- **Contract data**: Pika Protocol v3 VaultTokenReward contract events specifically tracking OP token reward distributions

## 3. Step-by-step calculation

### Component A: Raw incentive data extraction
- **Purpose**: Identifies and extracts all OP token reward distributions from Pika Protocol's reward contract
- **Logic**: Filters blockchain event logs for `RewardPaid` events from Pika Protocol's VaultTokenReward contract on Optimism. Extracts the `reward` field as the token amount, along with recipient `address`, `block_timestamp`, `transaction_hash`, and `log_index`. Applies business context labeling including chain identification as Optimism, business line as perpetual trading, market sector as derivatives, business segment as perpetual, and version as v3. Hardcodes the OP token address as `0x4200000000000000000000000000000000000042`
- **Key fields**: `reward` amount converted to `amount`, recipient `address` as `account_address`, `block_timestamp` for timing, `token_address` hardcoded for OP token

### Component B: USD conversion and standardization  
- **Purpose**: Converts raw token amounts to USD values and applies proper decimal formatting
- **Logic**: Takes the raw token incentive amounts and applies the `convert_to_usd_and_correct_decimals` macro which performs two key operations: converts OP token amounts from wei units (18 decimals) to standard decimal representation, and multiplies by end-of-day OP token prices to get USD values. Timestamps are truncated to daily boundaries using day-level granularity
- **Key fields**: `token_incentives` amounts converted to USD, `timestamp` truncated to daily boundaries, `token_address` maintained for price lookup

### Final aggregation
- **Combining components**: The USD-converted incentive data flows through the `finalize_metric_token_incentives` macro which applies standardized schema validation, ensures proper business segment and market sector classifications, and implements gap-filling logic
- **Currency conversion**: USD conversion uses end-of-day OP token price feeds matched to the transaction date, with OP token amounts first converted from 18-decimal wei format to standard units
- **Time aggregation**: Daily boundaries are established by truncating block timestamps to day level, with all incentives within a calendar day aggregated together
- **Final calculation**: The final metric represents the total USD value of OP token incentives distributed to Pika Protocol traders each day, with missing days filled with zero values to maintain complete time series continuity

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

Value of native tokens distributed as incentives.

Pika ProtocolPIKA

Token incentives

Token incentives

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