Options buyers pay premium (supply-side fees) to liquidity providers who collaterize these option positions and cover possible profits.

Premia is an options trading protocol built on Ethereum & adjacent blockchains. Premia was founded by Anon Powered team and launched in 2021.

PREMIA tokenholders own and govern the protocol. They take a protocol fee (revenue) from options trading.

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Premia

# Premia Expenses Methodology

## 1. Overview

The Premia expenses metric measures the total value of PREMIA token incentives claimed by users across the protocol's options trading platform. This metric represents the operational cost to Premia of providing token-based rewards to users for their participation in the options ecosystem. The calculation aggregates daily claim events from PremiaMine contracts deployed across multiple blockchain networks and converts the claimed token amounts to USD values.

## 2. Data sources

- **Blockchain events**: Parsed `Claim` events from Premia PremiaMine contracts deployed on Ethereum, Arbitrum, Fantom, and Optimism networks
- **Token addresses**: Hardcoded PREMIA token contract addresses specific to each blockchain and protocol version
- **External data**: End-of-day price feeds for PREMIA token USD conversion
- **Token metadata**: PREMIA token decimal configuration for proper amount normalization

## 3. Step-by-step calculation

### Component A: Raw claim event extraction
- **Purpose**: Extracts PREMIA token claim events from PremiaMine contracts across all supported chains
- **Logic**: The system identifies `Claim` events from PremiaMine contracts on four blockchain networks (Ethereum, Arbitrum, Fantom, Optimism) using hardcoded contract addresses and token addresses for each chain-version combination. Each claim event contains a `rewardAmount` field representing the raw token amount claimed by a user. The events are filtered to distinct records based on block timestamp, transaction hash, log index, and account address to prevent double-counting.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for unique identification, `address` as the claiming account, and `rewardAmount` as the raw token incentive amount

### Component B: Business classification and standardization  
- **Purpose**: Applies consistent business categorization and chain standardization to claim events
- **Logic**: Each claim event is classified with standardized business metadata including business line as 'Options trading', market sector as 'derivatives', and business segment as 'option'. Chain names are extracted from schema names and standardized. Product ID is set to null as these are protocol-level incentives. Version information is extracted from the schema naming pattern to distinguish between protocol versions.
- **Key fields**: `chain` for blockchain identification, `business_line`, `market_sector_id`, `business_segment_id` for categorization, `version` for protocol version, and `token_address` for the specific PREMIA token contract

### Component C: Time aggregation and USD conversion
- **Purpose**: Converts raw token amounts to USD values and aggregates by daily time periods
- **Logic**: Block timestamps are truncated to daily boundaries using day-level granularity. Raw token amounts undergo decimal correction based on PREMIA token metadata to convert from blockchain native units to human-readable token amounts. The corrected amounts are then converted to USD values using end-of-day price feeds for the PREMIA token. This creates daily aggregated values of token incentives in USD terms.
- **Key fields**: `timestamp` truncated to day boundaries, `timestamp_grain` set to 'day', `token_incentives` as the corrected and USD-converted amount

### Final aggregation
- **Combining components**: The token incentives calculation applies schema validation, data quality checks, and gap filling through the finalize macro to ensure complete daily time series across all chains
- **Currency conversion**: PREMIA token amounts are converted to USD using end-of-day price feeds after applying proper decimal corrections based on token metadata  
- **Time aggregation**: All claim events are aggregated to daily boundaries, with missing days filled using a 'fill_zeros' strategy
- **Final calculation**: The expenses metric directly maps the calculated token incentives values as expenses, representing the total USD value of PREMIA tokens distributed as user incentives each day across all supported blockchain networks

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

Total project operating and incentive expenses.

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Expenses

Expenses

Competitive landscape

Chain breakdown