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Seamless Protocol

# Seamless Protocol Operating expenses Methodology

## 1. Overview

Operating expenses for Seamless Protocol represent the daily cost of token incentive payments distributed to users through the protocol's rewards system. This metric captures all reward token distributions (excluding governance tokens) as operating expenses, providing insight into the protocol's user acquisition and retention costs. The calculation aggregates daily reward payments from the RewardsController contract and converts them to USD values.

## 2. Data sources

- **Blockchain events**: Parsed `RewardsClaimed` events from Seamless Protocol's RewardsController contract on the Base blockchain
- **External data**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token decimal information for proper amount normalization

## 3. Step-by-step calculation

### Component A: Reward claim event extraction
- **Purpose**: Captures all token incentive payments made by the protocol to users
- **Logic**: Extracts `RewardsClaimed` events from the RewardsController contract on Base chain, capturing the timestamp, transaction details, recipient address, reward token address, and claimed amount. Filters out governance token payments by excluding two specific governance token addresses (0x1c7a460413dd4e964f96d8dfc56e7223ce88cd85 and 0x998e44232bef4f8b033e5a5175bdc97f2b10d5e5) to focus only on operational reward expenses rather than governance distributions
- **Key fields**: `block_timestamp` for timing, `address` for recipient, `reward` token address, `amount` for payment size, with business classification fields set to lending segment

### Component B: Daily aggregation and classification
- **Purpose**: Structures the reward payments as daily operating expense records
- **Logic**: Truncates block timestamps to daily boundaries and classifies all reward payments as operating expenses under the lending business line and segment. Sets the chain to Base and version to v1, with product classification left null for aggregate protocol-level reporting
- **Key fields**: `timestamp` truncated to day grain, `operating_expenses` as the expense amount, `chain_id` set to base, business segment classifications

### Component C: USD conversion and decimal correction
- **Purpose**: Converts token amounts to USD values with proper decimal handling
- **Logic**: Applies USD conversion using end-of-day token price feeds matched to the reward token addresses. Simultaneously corrects for token decimal places to ensure accurate USD value calculation, handling different decimal standards across reward tokens
- **Key fields**: `operating_expenses` converted to USD amounts with decimal precision

### Final aggregation
- **Combining components**: The model flows from raw events through classification to USD conversion in a linear pipeline
- **Currency conversion**: USD conversion applied using end-of-day price feeds with decimal correction for accurate valuation
- **Time aggregation**: Events aggregated to daily boundaries with timestamp truncation
- **Final calculation**: The final metric represents the sum of all non-governance reward token payments per day, converted to USD, with zero-fill strategy applied for days without reward distributions to maintain complete time series data

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

Total operating expenses borne by the protocol, excluding token incentives.

Seamless ProtocolSEAM

Operating expenses

Operating expenses

Competitive landscape

Chain breakdown