Liquidity providers deposit funds into LFJ and receive trading fees from traders (supply-side fees).

LFJ (previously Trader Joe) is a non-custodial exchange protocol built on Avalanche (originally a fork of SushiSwap). LFJ was founded by an anonymous team and launched in 2021.

JOE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). LFJ's investors include Three Arrows Capital, DeFiance Capital, GBV Capital, Mechanism Capital, etc.

website

github

twitter

discord

etherscan

Exchanges (DEX)

# LFJ Expenses Methodology

## 1. Overview

TraderJoe expenses represents the total cost of token incentives paid to liquidity providers through the platform's farming programs. The metric captures JOE tokens distributed as rewards to users who provide liquidity to trading pairs on TraderJoe's decentralized exchange. These incentives represent TraderJoe's primary operational expense as they encourage liquidity provision and trading activity on the platform.

## 2. Data sources

The calculation uses the following raw data sources:
- **Avalanche blockchain events**: Parsed `Harvest` events from three TraderJoe MasterChef contracts (BoostedMasterChefJoe, MasterChefJoeV2, and MasterChefJoeV3) that record when users claim their liquidity mining rewards
- **Contract metadata**: Static mapping of MasterChef contract addresses to their human-readable names and versions
- **Token price data**: End-of-day JOE token price feeds for USD conversion
- **Token metadata**: JOE token decimal information for proper amount calculation

## 3. Step-by-step calculation

### Component A: Liquidity incentive events extraction
- **Purpose**: Identify all JOE token rewards distributed through TraderJoe's liquidity mining programs
- **Logic**: Extract `Harvest` events from three different MasterChef contracts on Avalanche. Each event represents a user claiming their accumulated JOE token rewards from providing liquidity to trading pairs. Filter out specific pool IDs (35, 36, 66, 67, 69) that represent non-farm incentives like lending rewards or inter-contract transfers to avoid double counting emissions
- **Key fields**: Event timestamp (`block_timestamp`), contract address (`address`), JOE token amount (`amount`), and pool ID (`pid`) for filtering

### Component B: Contract identification and standardization
- **Purpose**: Map contract addresses to readable names and standardize event classification
- **Logic**: Join the raw events with a predefined mapping of contract addresses to their names (BoostedMasterChefJoe, MasterChefJoeV2, MasterChefJoeV3). Classify all events as Exchange AMM business line within the exchanges market sector and dex business segment. Set the token address to JOE token's contract address and mark all as version 1
- **Key fields**: Contract name (`account_name`), business classification fields, and standardized `token_address`

### Component C: Daily aggregation and USD conversion
- **Purpose**: Convert individual harvest events into daily totals in USD
- **Logic**: Truncate all event timestamps to daily boundaries and sum JOE token amounts by day, chain, and contract. Convert raw token amounts from blockchain units to decimal-corrected values using JOE token's decimal specification. Apply end-of-day JOE token prices to convert amounts to USD values
- **Key fields**: Daily timestamp (`timestamp`), chain identifier (`chain_id`), and USD-converted token incentive amount (`token_incentives`)

### Final aggregation
- **Combining components**: Sum all daily token incentives across all MasterChef contracts to get total daily JOE rewards distributed
- **Currency conversion**: Use end-of-day JOE token prices and apply proper decimal correction (18 decimals for JOE token)
- **Time aggregation**: Group by daily boundaries using timestamp truncation
- **Final calculation**: Rename the `token_incentives` field to `expenses` as these represent TraderJoe's operational costs for incentivizing liquidity provision. Apply fill_zeros strategy to ensure no gaps in daily time series data

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

Total project operating and incentive expenses.

LFJJOE

Expenses

Expenses

Competitive landscape

Chain breakdown