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.

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Exchanges (DEX)

# LFJ Token incentives Methodology

## 1. Overview

The TraderJoe token incentives metric measures the daily USD value of JOE tokens distributed as liquidity mining rewards to users on the TraderJoe DEX. This metric captures the protocol's incentive spending to attract and retain liquidity providers across its various MasterChef staking contracts on Avalanche. The calculation aggregates `Harvest` events from three different MasterChef contracts, converts JOE token amounts to USD, and presents daily totals with proper filtering to exclude non-farm incentive distributions.

## 2. Data sources

- **Blockchain events**: TraderJoe `Harvest` events from three MasterChef contracts on Avalanche (BoostedMasterChefJoe, MasterChefJoeV2, MasterChefJoeV3)
- **External data**: End-of-day price feeds for JOE token USD conversion and token metadata for decimal correction
- **Contract mapping**: Hardcoded mapping of MasterChef contract addresses to human-readable names

## 3. Step-by-step calculation

### Component A: Raw incentive events extraction
- **Purpose**: Collect all JOE token distribution events from TraderJoe's MasterChef contracts
- **Logic**: Extract `Harvest` events from three MasterChef contracts on Avalanche. For BoostedMasterChefJoe and MasterChefJoeV3, include all events. For MasterChefJoeV2, apply filtering to exclude pool IDs 66, 35, 36, 67, and 69, which represent either cross-contract emissions or non-farm incentives like lending rewards. Each event captures the contract address, timestamp, transaction details, and raw JOE token amount distributed.
- **Key fields**: `block_timestamp` for timing, `address` as the MasterChef contract, `amount` as raw JOE tokens distributed, `pid` for pool identification in filtering

### Component B: Event standardization and classification
- **Purpose**: Standardize all incentive events with consistent business metadata
- **Logic**: Apply uniform business line classification as "Exchange AMM", market sector as "exchanges", and business segment as "dex". Set the token address to the hardcoded JOE token address. Add chain identifier as "avalanche" and version as "v1". Convert raw amounts to proper numeric format for downstream processing.
- **Key fields**: `chain` set to avalanche, `business_line` as Exchange AMM, `token_address` set to JOE token, standardized `amount` field

### Component C: Contract name mapping
- **Purpose**: Add human-readable names for the MasterChef contract addresses
- **Logic**: Join incentive events with a dimension table that maps three specific contract addresses to their names: BoostedMasterChefJoe, MasterChefJoeV2, and MasterChefJoeV3. This provides context for which incentive mechanism distributed each reward.
- **Key fields**: `account_address` for joining, `account_name` and `contract_name` for identification

### Component D: USD conversion and decimal correction
- **Purpose**: Convert raw JOE token amounts to USD values with proper decimal handling
- **Logic**: Apply decimal correction based on JOE token metadata (18 decimals) and convert to USD using end-of-day price feeds. This ensures amounts are properly scaled from wei units to actual JOE tokens, then converted to USD for consistent reporting across different time periods.
- **Key fields**: Corrected `token_incentives` amount in proper decimal format, USD-converted values

### Final aggregation
- **Combining components**: Sum all USD-converted incentive amounts by day, grouping by timestamp, chain, business classifications, and contract details
- **Currency conversion**: USD conversion applied using end-of-day JOE token prices with proper 18-decimal correction
- **Time aggregation**: Daily boundaries created by truncating block timestamps to day level, ensuring all events within a 24-hour period are grouped together
- **Final calculation**: Daily total represents the sum of all JOE token incentives distributed across the three MasterChef contracts, converted to USD, with zero-fill applied for dates with no distributions and filtering based on chain data availability

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

Value of native tokens distributed as incentives.

LFJJOE

Token incentives

Token incentives

Competitive landscape

Chain breakdown