# PrimeFi Lending Token incentives Methodology

## 1. Overview

Token incentives measures the value of native tokens that are paid out to supply and demand-side users of PrimeFi Lending. These incentives are used to compensate stakeholders for providing liquidity or participating in the lending ecosystem. The metric is analogous to stock-based compensation in traditional finance and represents the protocol's cost for liquidity acquisition.

## 2. Data sources

- **Blockchain events**: `Withdrawn` events from `MultiFeeDistribution` contracts, covering XDC Network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

## 3. Step-by-step calculation

### Component A: PrimeFi Lending incentive extraction

- **Purpose**: Captures reward distributions specifically for participants of the PrimeFi Lending product
- **Logic**: `Withdrawn` events are parsed from `MultiFeeDistribution` contracts on the XDC Network. The `receivedAmount` field is extracted to identify the quantity of tokens distributed to users during the withdrawal process. Events are filtered to include only those associated with the lending business line.
- **Key fields**: `receivedAmount` (incentive quantity), `token_address` (asset identification)

### Component B: Asset normalization and USD conversion

- **Purpose**: Normalizes incentive quantities and converts them into a standardized USD value
- **Logic**: Distributed asset amounts are normalized by their specific decimal precision. These normalized values are then multiplied by end-of-day price feeds corresponding to the distributed asset. The resulting USD values are aggregated at a daily granularity using UTC day boundaries.
- **Key fields**: `token_address` (used for price and decimal lookups), `block_timestamp` (used for daily aggregation)

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

Value of native tokens distributed as incentives.

Token incentives

PrimeFi Lending

Token incentives

Token incentives

Chain breakdown