# Thena V1 Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by Thena V1 to incentivize liquidity and maintain protocol operations. This metric is composed of two primary elements: token incentives and operating expenses. Token incentives represent the value of THE assets distributed to liquidity providers through the protocol's gauge system. Operating expenses are calculated as a fixed percentage of protocol fees, accounting for the portion of revenue allocated to referral rewards and the protocol's lottery mechanism.

## 2. Data sources

- **Blockchain events**: `Fees` events from `Pair` contracts, `Harvest` events from `Gauge` contracts, `PairCreated` events from `PairFactory` contracts, and `GaugeCreated` events from `Voter` contracts, covering BNB Chain and opBNB.
- **External data**: End-of-day price feeds and asset metadata.

## 3. Step-by-step calculation

### Component A: Trading fee extraction

- **Purpose**: To identify the total trading fees collected by the protocol as the basis for calculating operating expenses.
- **Logic**: `PairCreated` events from `PairFactory` contracts are used to identify all valid trading pairs. `Fees` events are then parsed from `Pair` contracts to capture the raw amounts of both assets in a trading pair (token0 and token1). These amounts are normalized by decimal precision and aggregated by day.
- **Key fields**: `token0_amount`, `token1_amount`, `account_address`.

### Component B: Operating expense allocation

- **Purpose**: To determine the portion of protocol fees directed toward operational costs, including referrals and the lottery.
- **Logic**: A 12% allocation rate is applied to the total trading fees collected by the protocol. This rate represents the maximum referral fee split, which includes rewards directed to the lottery system from unclaimed referral incentives.
- **Key fields**: `fees`, `referral_rate` (0.12).

### Component C: Liquidity incentive tracking

- **Purpose**: To capture the value of the THE asset distributed to liquidity providers.
- **Logic**: `GaugeCreated` events from `Voter` contracts are utilized to map liquidity gauges to their respective trading pools. `Harvest` events are then parsed from `Gauge` contracts to identify reward distributions. The reward amounts are filtered to specifically include the THE asset distributed to participants.
- **Key fields**: `reward_amount`, `incentive_account_address`.

### Component D: Aggregation and USD conversion

- **Purpose**: To normalize all expense components into a unified USD value.
- **Logic**: Operating expenses and token incentives are combined to calculate the total expense metric. Raw asset amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. All data is aggregated at a daily granularity using UTC day boundaries.
- **Key fields**: `operating_expenses`, `token_incentives`, `price_usd`.

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

Total project operating and incentive expenses.

Expenses

Exchanges (DEX)

Liquidity providers deposit funds into Thena and stake their LP tokens to receive THE tokens (token incentives).

Thena is a non-custodial exchange protocol built on BNB Chain. Thena was founded by an anonymous team and launched in 2023.

THE tokenholders own and govern the protocol. They vote for pools where they wish to receive trading fees and external bribes from, while pools receive THE emissions in respect to their share of votes.

Thena V1

Archived

Expenses

Expenses

Chain breakdown