# Thena Fusion Expenses Methodology

## 1. Overview

Expenses measures the total costs incurred by Thena Fusion to sustain its decentralized exchange operations. This primarily consists of token incentives distributed to liquidity providers to bootstrap deep liquidity and operating expenses derived from the protocol's referral and lottery systems. Token incentives are captured from reward distributions within the gauge system, while operating expenses are calculated as a fixed percentage of trading fees allocated to referral rewards and the protocol lottery.

## 2. Data sources

- **Blockchain events**: `Harvest` events from `Gauge` contracts and `Pool` events from `AlgebraFactory` contracts, covering BNB Smart Chain and opBNB
- **External data**: End-of-day price feeds for the distributed reward assets and traded assets

## 3. Step-by-step calculation

### Component A: Token incentive extraction for Thena Fusion

- **Purpose**: Captures the value of assets distributed to liquidity providers as rewards.
- **Logic**: `Harvest` events are parsed from `Gauge` contracts associated with Thena Fusion. These events are filtered to include only those relevant to the V2 (Fusion) deployment. The gauge addresses are mapped to their corresponding trading pairs using `Pool` events emitted by `AlgebraFactory` contracts. The raw reward amounts are extracted from the `reward` field and aggregated by transaction and contract address.
- **Key fields**: `in_reward` (reward amount), `address` (gauge contract address).

### Component B: Operating expense allocation

- **Purpose**: Calculates the portion of trading fees designated for referral rewards and the protocol lottery.
- **Logic**: A 12% referral rate is applied to the total fees generated by Thena Fusion trading pairs. This rate represents the maximum referral fee split, which accounts for both direct referral payouts and unclaimed rewards that are diverted to fund the protocol's lottery system.
- **Key fields**: `fees` (derived from the Fees metric), `referral_rate` (set to 0.12).

### Component C: Normalization and USD conversion

- **Purpose**: Converts all expense components into a standardized USD value.
- **Logic**: Token incentive amounts are normalized by their respective asset decimal precision and multiplied by end-of-day price feeds. Operating expenses, already calculated from USD-denominated fees, are combined with the incentive totals. All values are aggregated to a daily frequency using UTC day boundaries.
- **Key fields**: `block_timestamp`, `amount`, `token_address`, `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 Fusion

Archived

Expenses

Expenses

Chain breakdown