Tokemak enables users to both provide liquidity and control where that liquidity goes. Liquidity Providers deposit single-sided assets into individual Token Reactors and/or Genesis Pools (ETH, USDC), and earn yield in the form of TOKE.

Tokemak is a decentralized market making platform and a liquidity router that disaggregates traditional liquidity provision and market making for DeFi. It was founded by Carson Cook and launched in 2021.

TOKE token holders own and govern the protocol. They currently take all the 3rd party LP fees paid (revenue).

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Asset management

Tokemak

# Tokemak Expenses Methodology

## 1. Overview

Tokemak expenses represents the USD value of token incentives paid out to users through reward claims. This metric tracks the operational cost of Tokemak's yield aggregation protocol by measuring TOKE token rewards distributed to participants. The calculation aggregates daily reward claim events from Tokemak v1 on Ethereum, converts token amounts to USD values, and applies standard metric finalization processes.

## 2. Data sources

- **Blockchain events**: Tokemak v1 `Rewards_Claimed` events on Ethereum containing reward distribution data
- **Token metadata**: TOKE token information including contract address and decimal precision
- **External data**: End-of-day price feeds for USD conversion of TOKE tokens
- **Transaction data**: Ethereum transaction records containing reward claim transaction hashes and block timestamps

## 3. Step-by-step calculation

### Component A: Reward claims extraction
- **Purpose**: Extracts and standardizes reward claim events from Tokemak v1
- **Logic**: Parses `Rewards_Claimed` events from Tokemak v1 Ethereum contracts to identify when users claim TOKE token rewards. Each event contains the claiming account address, reward amount, transaction hash, log index, and block timestamp. The system applies business context classification, tagging each claim with 'Asset management' as the business line, 'asset_management' as market sector, and 'yield_aggregator' as business segment. The TOKE token address is standardized to `0x2e9d63788249371f1dfc918a52f8d799f4a38c94` and version is tagged as 'v1'
- **Key fields**: `account_address` for the claiming user, `amount` for TOKE tokens claimed, `block_timestamp` for timing, `transaction_hash` and `log_index` for event identification

### Component B: Token incentives aggregation  
- **Purpose**: Aggregates reward claims into daily token incentive totals
- **Logic**: Groups reward claim events by daily boundaries using timestamp truncation to aggregate all TOKE reward distributions within each day. Maintains business context fields and account-level detail while summing token amounts. The aggregated amounts become the `token_incentives` metric representing total daily TOKE rewards distributed
- **Key fields**: `timestamp` truncated to daily boundaries, `token_incentives` as aggregated TOKE amounts, business classification fields maintained from source events

### Component C: USD conversion and decimal correction
- **Purpose**: Converts TOKE token amounts to USD values with proper decimal scaling
- **Logic**: Applies Token Terminal's standard USD conversion process using end-of-day price feeds for TOKE tokens. The system retrieves historical TOKE prices and multiplies token amounts by corresponding daily prices. Simultaneously applies decimal correction to handle TOKE's token precision, ensuring amounts are properly scaled from wei-level precision to token-level amounts before price multiplication
- **Key fields**: `token_incentives` converted to USD values, `token_address` for price feed matching, `timestamp` for price date alignment

### Final aggregation
- **Combining components**: Token incentives in USD become the expenses metric directly, as reward payouts represent operational costs for the protocol
- **Currency conversion**: TOKE token amounts converted to USD using end-of-day price feeds matched to claim dates
- **Time aggregation**: Daily boundaries established through timestamp truncation, with gaps filled using zero values for days without reward claims
- **Final calculation**: Total daily USD value of TOKE reward claims equals the expenses metric, representing the protocol's cost of incentivizing user participation through token distributions

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

Total project operating and incentive expenses.

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Expenses

Expenses

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