Overcollateralized borrowers deposit funds into Reflexer and receive RAI stablecoin.

Reflexer is a non-custodial stablecoin protocol built on Ethereum. Reflexer was founded by Ameen Soleimani & Stefan Ionescu and launched in 2020.

FLX tokenholders own and govern the protocol. They currently collect the total interest paid by borrowers (revenue). Reflexer’s investors include Paradigm, Variant Fund, Pantera Capital, etc.

governance

github

twitter

discord

etherscan

website

Stablecoin issuers

Reflexer

# Reflexer Token incentives Methodology

## 1. Overview

Token incentives represents the total value of incentives distributed to users of the Reflexer protocol, which issues the RAI stablecoin. This metric captures both direct token rewards paid to users and implicit incentives when the protocol charges negative stability fees (effectively paying users to maintain debt positions). The calculation combines explicit FLX token distributions with calculated incentive values from negative stability fee periods.

## 2. Data sources

- **Direct reward events**: Parsed Ethereum events from the Reflexer staking rewards escrow and merkle distributor contracts, capturing FLX token reward claims
- **Stability fee parameters**: Ethereum events from the Reflexer tax collector contract containing stability fee rate updates  
- **Outstanding debt data**: Ethereum events from the Reflexer SAFE engine contract tracking RAI debt positions and collateralization changes
- **Token metadata**: FLX and RAI token information including decimal precision and contract addresses
- **End-of-day price feeds**: Token price data for USD conversion of incentive values

## 3. Step-by-step calculation

### Component A: Direct FLX token rewards
- **Purpose**: Captures explicit FLX token incentives distributed to Reflexer users
- **Logic**: Extracts reward claims from two Ethereum event types. The staking rewards escrow events capture FLX rewards claimed from staking positions. The merkle distributor events capture FLX rewards claimed through merkle proof distributions, filtered to claims after April 15, 2021. Both event types extract the `amount` field representing FLX tokens distributed
- **Key fields**: `amount` (FLX reward quantity), `block_timestamp` (claim timing), FLX token address for identification

### Component B: Negative stability fee incentives  
- **Purpose**: Calculates implicit incentives when the protocol pays users through negative stability fees
- **Logic**: First, stability fee rates are extracted from tax collector parameter change events and converted from per-second rates to annual percentages using the compound interest formula. Daily outstanding RAI debt is calculated from SAFE engine collateralization events for WETH collateral positions. When stability fees are negative (below zero), the daily incentive amount is calculated by multiplying outstanding supply by the negative stability fee rate divided by 365 days
- **Key fields**: `stability_fee` (annual rate), `outstanding_supply` (daily RAI debt), calculated `amount` (daily incentive value)

### Final aggregation
- **Combining components**: Direct FLX rewards and calculated negative stability fee incentives are combined through a union operation, creating a unified dataset of all token incentives
- **Time aggregation**: All incentive amounts are aggregated to daily totals using the transaction timestamp truncated to day boundaries
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with decimal correction applied to normalize token precision
- **Final calculation**: The metric represents the total USD value of token incentives distributed daily, including both explicit FLX token rewards and implicit incentives from negative stability fee periods

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

Value of native tokens distributed as incentives.

ReflexerFLX

Token incentives

Token incentives

Competitive landscape

Chain breakdown