# PrimeFi Lending Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by PrimeFi Lending to maintain its operations and incentivize participation within the ecosystem. For PrimeFi Lending, this metric specifically captures the value of token incentives distributed to users. These expenses represent the project's investment in liquidity and user growth, which are converted to USD to provide a standardized view of operational costs.

## 2. Data sources

- **Blockchain events**: `Withdrawn` events from `MultiFeeDistribution` contracts, covering XDC
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: PrimeFi Lending incentive extraction

- **Purpose**: Captures the raw value of reward tokens distributed to participants within the PrimeFi Lending ecosystem.
- **Logic**: `Withdrawn` events are parsed from `MultiFeeDistribution` contracts. The reward quantities are extracted from the `receivedAmount` field. Only events associated with the PrimeFi Lending business line are included in the aggregation.
- **Key fields**: `receivedAmount` (incentive quantity), `token_address` (asset identification), `block_timestamp` (event timing).

### Component B: USD conversion and normalization

- **Purpose**: Normalize incentive amounts by their respective decimal precision and convert the values into a standardized USD denomination.
- **Logic**: Incentive amounts are adjusted based on asset metadata to account for decimal precision. The normalized values are then multiplied by end-of-day price feeds corresponding to the specific asset and date of distribution.

### Component C: Aggregation and finalization

- **Purpose**: Consolidate daily incentive values into the final expenses metric for the product.
- **Logic**: The USD-denominated incentives are summed by day and product ID. A zero-filling strategy is applied to ensure a continuous time series for the expenses metric. The final values are filtered based on chain availability and approved timestamps to ensure data freshness and accuracy.

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

Total project operating and incentive expenses.

Expenses

PrimeFi Lending

Expenses

Expenses

Chain breakdown