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Asset management

Reserve

# Reserve Expenses Methodology

## 1. Overview

Reserve expenses represents the total USD value of token incentives paid out by the Reserve protocol on a daily basis. This metric tracks treasury withdrawals from Reserve's cold wallet as a proxy for protocol expenses, specifically measuring token incentive distributions to users and stakeholders. The metric answers the business question: "How much is Reserve spending daily on token incentives?" by monitoring outflows from their treasury address.

## 2. Data sources

- **Ethereum token transfer events**: Parsed `Transfer` events from Ethereum blockchain, specifically filtering transfers originating from Reserve's treasury cold wallet
- **End-of-day token price feeds**: USD price data for tokens to convert withdrawal amounts to dollar values
- **Token metadata**: Decimal precision information for accurate token amount calculations

## 3. Step-by-step calculation

### Component A: Treasury withdrawal tracking
- **Purpose**: Identifies and captures all token transfers originating from Reserve's treasury cold wallet
- **Logic**: Filters Ethereum token transfer events to only include transactions where the `from_address` matches Reserve's treasury cold wallet address (`0x0774df07205a5e9261771b19afa62b6e757f7ef8`). Each withdrawal is recorded with its timestamp, token address, recipient address, and transfer amount. All withdrawals are attributed to the "Reserve Yield" product and Ethereum chain.
- **Key fields**: `block_timestamp` for timing, `token_address` for token identification, `to_address` for recipient tracking, `amount` for withdrawal quantity

### Component B: Daily aggregation and USD conversion
- **Purpose**: Converts individual token withdrawals into daily USD-denominated expense totals
- **Logic**: Groups treasury withdrawals by day using timestamp truncation, then applies USD conversion using end-of-day token price feeds. Token amounts are corrected for decimal precision based on token metadata. Multiple withdrawals of the same or different tokens on the same day are summed together to create a single daily expense figure per product and chain.
- **Key fields**: `timestamp` (truncated to day), `token_incentives` (USD-converted amounts), `chain_id`, `product_id`

### Final aggregation
- **Combining components**: Daily token incentive totals are passed through the expenses finalization macro, which standardizes the schema and applies data quality validation
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with proper decimal correction applied based on each token's precision
- **Time aggregation**: All withdrawals within a calendar day are aggregated into a single expense value
- **Final calculation**: The final expense metric represents the total USD value of all token transfers out of Reserve's treasury wallet on each day, with missing days filled with zero values to ensure complete time series coverage

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

Total project operating and incentive expenses.

ReserveRSR

Expenses

Expenses

Competitive landscape

Chain breakdown