# Uniswap V2 Token incentives Methodology

## 1. Overview

Token incentives is defined as the value of native assets distributed by Uniswap V2 to liquidity providers as compensation for staking liquidity pool assets. These incentives are distributed to bootstrap liquidity across key trading pairs and are analogous to stock-based compensation in traditional finance. The distribution of the native UNI asset from designated staking contracts to participating users is captured by this metric.

## 2. Data sources

- **Blockchain events**: `RewardPaid` events from `StakingRewards` contracts, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata for the native UNI asset

## 3. Step-by-step calculation

### Component A: Uniswap V2 liquidity incentive contract identification

- **Purpose**: Identification of the specific staking contracts used for Uniswap V2 liquidity mining
- **Logic**: A predefined list of staking contract addresses is maintained to identify eligible incentive pools. These contracts are mapped to specific Uniswap V2 liquidity pools, including DAI-ETH, ETH-USDT, WBT-ETH, and USDC-ETH.
- **Key fields**: `account_address`, `account_name`

### Component B: Uniswap V2 reward distribution extraction

- **Purpose**: Extraction of the volume of native assets distributed as rewards
- **Logic**: `RewardPaid` events are parsed from the identified `StakingRewards` contracts on Ethereum. The reward amount and the recipient address are extracted from each event, with the distributed asset identified as the native UNI asset.
- **Key fields**: `block_timestamp`, `account_address`, `token_address`, `amount`

### Component C: Decimal normalization and USD conversion

- **Purpose**: Normalization of reward amounts and conversion to USD
- **Logic**: The raw reward amounts are normalized by the decimal precision of the UNI asset using asset metadata. The normalized amounts are then multiplied by the end-of-day price of the UNI asset using end-of-day price feeds to determine the USD value of the incentives. Daily values are aggregated using UTC day boundaries.
- **Key fields**: `timestamp`, `token_incentives`, `price_usd`

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

Value of native tokens distributed as incentives.

Token incentives

Exchanges (DEX)

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

Uniswap is a non-custodial exchange protocol built on Ethereum. Uniswap was founded by Hayden Adams and launched in 2018.

UNI tokenholders own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Uniswap's investors include Paradigm, a16z, USV, etc.

Uniswap V2

Token incentives

Token incentives

Chain breakdown