Polynomial Protocol builds on top of Synthetix to create a synthetic perpetuals trading platform. Traders on Polynomial trade futures against the liquidity provided by liquidity providers on Synthetix, with liquidity providers receiving trading fees (supply-side fees).

Polynomial Protocol is a non-custodial exchange for perpetual contracts built on Optimism. Polynomial Protocol was founded by Gautham Santhosh, Salman Naseer Ahmed, & Mubaris NK, and their flagship product Polynomial Trade was launched in 2023.

The Polynomial team own and govern the protocol. Polynomial’s investors include Archetype, Genblock Capital, Caballeros Capital, etc.

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Polynomial Protocol

# Polynomial Protocol Token incentives Methodology

## 1. Overview

The polynomial token incentives metric measures the value of token-based rewards or incentives distributed by Polynomial Protocol to users, liquidity providers, or other participants. Currently, Polynomial Protocol does not operate any token incentive programs, so this metric is consistently set to zero across all time periods and supported blockchain networks. The calculation leverages the same dimensional structure as the fees metric to ensure consistent time series coverage and data completeness.

## 2. Data sources

While the metric value is hardcoded to zero, the calculation uses the following data sources to establish the proper dimensional structure:

- **Blockchain events**: Parsed Optimism blockchain events from Synthetix v2 perpetual trading contracts (`PerpsTracking` and `PositionModified` events) and Polynomial v1 advanced order contracts (`ExecuteRequest`, `ExecuteLimitOrder`, and `ExecutePairOrder` events)
- **External data**: End-of-day token price feeds for USD conversion capabilities and token metadata for sUSD
- **Transaction data**: Optimism transaction records containing perpetual trading activity and advanced order executions

## 3. Step-by-step calculation

### Component A: Base dimensional structure extraction
- **Purpose**: Extract the required timestamp and dimensional fields to create a complete time series framework
- **Logic**: The calculation references the polynomial fees model to obtain daily timestamps, chain identifiers, and product identifiers. This ensures the token incentives metric maintains the same temporal and dimensional coverage as other Polynomial Protocol metrics, even though no actual incentive values are calculated
- **Key fields**: `timestamp` (daily grain), `timestamp_grain`, `product_id`, and `chain_id` fields are extracted to establish the metric structure

### Component B: Token incentives value assignment
- **Purpose**: Set token incentive values to zero for all records
- **Logic**: Instead of calculating actual token incentive distributions, the model explicitly assigns a value of 0 to the `token_incentives` field for every record. This reflects the current state where Polynomial Protocol does not operate token-based reward or incentive programs
- **Key fields**: `token_incentives` field is set to 0 for all time periods and chains

### Final aggregation
- **Combining components**: The dimensional structure from the fees model is combined with the hardcoded zero values for token incentives
- **Currency conversion**: No currency conversion is required since all values are zero, though USD conversion capabilities remain available through the underlying infrastructure
- **Time aggregation**: Daily time boundaries are maintained to ensure consistency with other protocol metrics, with each day having a zero token incentives value
- **Final calculation**: The final metric value is consistently 0 USD across all time periods and supported chains, representing the absence of token incentive programs in Polynomial Protocol

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

Value of native tokens distributed as incentives.

Polynomial Protocol

Token incentives

Token incentives

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