Liquidity providers deposit funds into PoolTogether and receive a return on investment in lottery winnings (supply-side fees).

PoolTogether is an asset management (no-loss lottery) protocol built on Ethereum and other adjacent blockchains. PoolTogether was founded by Leighton Cusack and launched in 2019.

POOL tokenholders own and govern the protocol. They currently do not take a cut of the total return on investment paid by liquidity providers (revenue). PoolTogether’s investors include IDEO CoLab Ventures, DTC Capital, ConsenSys Ventures, etc.

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PoolTogether

# PoolTogether Token incentives Methodology

## 1. Overview

Token incentives measures the total USD value of token rewards distributed daily by the PoolTogether protocol to users. This metric captures the value of incentive tokens claimed by users across multiple blockchains where PoolTogether operates, providing insight into the protocol's spending on user acquisition and retention through token-based rewards.

## 2. Data sources

- **Blockchain events**: Parsed `Claimed` events from PoolTogether V4 TokenFaucet and TokenFaucetV2 contracts on Ethereum, TokenFaucet contracts on Polygon, and `RewardsClaimed` events from TwabRewards contracts on Optimism
- **Transaction data**: Blockchain transaction records containing the incentive claim event logs with claim amounts and recipient addresses
- **External data**: End-of-day price feeds for POOL tokens (on Ethereum and Polygon) and OP tokens (on Optimism), plus token metadata for decimal precision handling
- **Contract addresses**: PoolTogether incentive distribution contract addresses across Ethereum (0x0cec1a9154ff802e7934fc916ed7ca50bde6844e), Polygon (0x25788a1a171ec66da6502f9975a15b609ff54cf6), and Optimism (0x4200000000000000000000000000000000000042)

## 3. Step-by-step calculation

### Component A: Raw incentive claim extraction
- **Purpose**: Extract and standardize token incentive claim events from multiple PoolTogether contracts across different blockchains
- **Logic**: Parse blockchain event logs from PoolTogether V4 incentive distribution contracts. On Ethereum, extract both `TokenFaucet_Claimed_event` and `TokenFaucetV2_Claimed_event` using the `newTokens` field for claim amounts. On Polygon, extract `TokenFaucet_Claimed_event` also using `newTokens`. On Optimism, extract `TwabRewards_RewardsClaimed_event` using the `amount` field. Each event provides the contract address, recipient address, claim amount, transaction details, and block timestamp. All claims are classified under the business line 'Asset management' and business segment 'yield_aggregator'
- **Key fields**: `block_timestamp` for timing, `account_address` for the claiming user, `chain` identifier, `token_address` for the specific reward token, `amount` for the claimed token quantity, and business classification fields

### Component B: Daily aggregation
- **Purpose**: Aggregate individual claim events into daily totals by relevant dimensions
- **Logic**: Group all claim events by day using timestamp truncation, along with account address, chain, business classifications, contract details, and token address. Sum the individual claim amounts to get total daily incentives claimed per unique combination of these dimensions. This creates a daily time series of token incentive distributions
- **Key fields**: `timestamp` truncated to day level, `token_incentives` as the summed daily claim amount, and all grouping dimensions preserved for analysis

### Component C: USD conversion and decimal correction
- **Purpose**: Convert raw token amounts to standardized USD values with proper decimal handling
- **Logic**: Join the daily incentive amounts with end-of-day price feeds for the respective tokens (POOL token prices for Ethereum and Polygon claims, OP token prices for Optimism claims). Apply decimal corrections based on each token's metadata to ensure amounts are properly scaled. Multiply the corrected token amounts by the corresponding USD prices to get daily incentive values in USD
- **Key fields**: USD-denominated `token_incentives` amounts with proper decimal scaling applied

### Final aggregation
- **Combining components**: The components flow sequentially - raw claims are aggregated daily, then converted to USD with decimal corrections applied
- **Currency conversion**: Uses end-of-day token price feeds matched to the specific reward tokens on each chain (POOL on Ethereum/Polygon, OP on Optimism), with decimal corrections applied based on token metadata
- **Time aggregation**: Claims are aggregated to daily boundaries using timestamp truncation, with all intraday claims summed together
- **Final calculation**: The final metric represents the total USD value of token incentives claimed per day, calculated as the sum of (individual claim amounts × token prices) with proper decimal corrections, filtered by chain availability and with zero-filling applied for missing data points in the time series

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

Value of native tokens distributed as incentives.

PoolTogetherPOOL

Token incentives

Token incentives

Competitive landscape

Chain breakdown