Liquidity providers deposit funds into Ribbon Protocol and receive option premiums from traders & withdrawal fees from other liquidity providers (supply-side fees).

Ribbon Finance is a non-custodial asset management protocol built on Ethereum. Ribbon Finance was founded by Julian Koh & Ken Chan and launched in 2021.

RBN tokenholders own and govern the protocol. They currently take a cut of the total premiums and management fees paid by liquidity providers (revenue).

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Ribbon Finance

# Ribbon Finance Token incentives Methodology

## 1. Overview

The Ribbon token incentives metric measures the daily USD value of RBN tokens distributed as incentives through the Ribbon protocol's asset management platform. This metric captures both direct token minting incentives and reward withdrawals from liquidity pools, providing a comprehensive view of token-based incentive programs used to encourage participation in Ribbon's yield aggregation strategies. The calculation validates protocol events against actual blockchain token transfers to ensure accuracy and prevent double-counting.

## 2. Data sources

- **Ribbon protocol events**: Parsed `Minter_Minted` events from Ribbon v2 smart contracts on Ethereum, capturing direct token minting for incentives
- **Ribbon reward events**: Parsed `Pool_RewardWithdrawn` events from Ribbon v2 smart contracts on Ethereum, capturing reward distributions from liquidity pools  
- **Ethereum token transfers**: Token transfer events for RBN token movements, used to validate and cross-reference protocol events
- **Token price data**: End-of-day price feeds for RBN token for USD conversion
- **Token metadata**: RBN token decimal configuration for proper amount normalization

## 3. Step-by-step calculation

### Component A: Minter incentive distributions
- **Purpose**: Captures RBN tokens distributed through direct minting incentives
- **Logic**: Extracts `Minter_Minted` events from Ribbon v2 protocol contracts and validates them by joining with corresponding Ethereum token transfer records. The join ensures the minted recipient address matches the token transfer recipient and the minter contract address matches the transfer sender. This validation prevents capturing failed or reverted transactions and ensures only successful token distributions are counted.
- **Key fields**: Block timestamp for daily aggregation, recipient address (`recipient`), minter contract address, transaction hash and log index for uniqueness, and token transfer `value` for the incentive amount

### Component B: Pool reward withdrawals  
- **Purpose**: Captures RBN tokens distributed as rewards withdrawn from Ribbon liquidity pools
- **Logic**: Extracts `Pool_RewardWithdrawn` events from Ribbon v2 protocol contracts and validates them against token transfers where the reward account matches the transfer recipient and the transfer originates from the designated incentive account address. This ensures only legitimate reward distributions from the protocol's incentive pool are captured.
- **Key fields**: Block timestamp for daily aggregation, reward account address (`account`), transaction hash and log index for uniqueness, and token transfer `value` for the reward amount

### Component C: Data combination and classification
- **Purpose**: Combines both incentive types into a unified dataset with consistent business classifications
- **Logic**: Unions the minter incentives and pool rewards while applying consistent business line classification as "Asset management", market sector as "asset_management", and business segment as "yield_aggregator". All incentives are classified under Ribbon v2 and associated with the RBN token address. The combination uses distinct operations to prevent duplicate records.
- **Key fields**: Standardized timestamp, chain identifier as "ethereum", business classifications, RBN token address, recipient addresses, and token amounts

### Final aggregation
- **Combining components**: The unified incentive data is aggregated by truncating timestamps to daily boundaries and grouping by chain, business classifications, product version, and token address
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds for the RBN token, with proper decimal correction applied based on the token's 18-decimal configuration
- **Time aggregation**: Daily boundaries are established using timestamp truncation, with the timestamp grain set to "day" for consistent time series analysis
- **Final calculation**: The metric represents the total USD value of RBN tokens distributed as incentives each day, validated against actual blockchain transfers and converted using market prices. Missing days are filled with zeros to maintain continuous time series data, and chain availability filters ensure data consistency across different blockchain networks.

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

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

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Chain breakdown