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

Verse is an automated market maker-based decentralized exchange built on Ethereum. Verse was created by Bitcoin.com, and launched in 2022.

VERSE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Verse's investors include Blockchain.com, KuCoin Ventures and others.

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Exchanges (DEX)

Verse

# Verse Expenses Methodology

## 1. Overview

The VerseDX expenses metric measures the total USD value of VERSE tokens distributed as liquidity mining incentives to users providing liquidity to VerseDX trading pairs. This represents the protocol's operational expense for incentivizing liquidity provision across seven different farming pools on Ethereum.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum `RewardPaid` events from seven VerseDX liquidity farming contracts (ETHDAIFarm, ETHUSDCFarm, VERSEETHFarm, WBTCETHFarm, WBTCUSDCFarm, ETHUSDTFarm, USDCHAPIFarm)
- **Token metadata**: VerseDX farm account mappings that associate contract addresses with trading pair names (e.g., ETH-DAI, VERSE-ETH)
- **External data**: End-of-day VERSE token price feeds for USD conversion

## 3. Step-by-step calculation

### Component A: Liquidity incentive event extraction
- **Purpose**: Capture all VERSE token rewards distributed to liquidity providers
- **Logic**: Extract `RewardPaid` events from seven different VerseDX farming contracts on Ethereum. Each event contains the recipient address and the `tokenAmount` of VERSE tokens distributed. Filter events to ensure they are from the correct VerseDX token contract address `0x249ca82617ec3dfb2589c4c17ab7ec9765350a18`. Include transaction metadata like `block_timestamp`, `transaction_hash`, and `log_index` for traceability.
- **Key fields**: `tokenAmount` (raw VERSE tokens distributed), `address` (recipient farm contract), `block_timestamp` (when reward was paid)

### Component B: Farm account mapping
- **Purpose**: Associate farm contract addresses with their corresponding trading pairs
- **Logic**: Join the incentive events with a dimension table that maps seven hardcoded farm contract addresses to their trading pair names. This includes ETH-DAI (`0xdd5a9eec299b74b2db2d3430608c1c5a8d9598eb`), ETH-USDC (`0x4e1f1206f2b9a651ecf2d49c5d33761861d4910c`), VERSE-ETH (`0xded0c22acd80e7a4bd6ec91ced451fc83f04cab2`), WBTC-ETH (`0x4efff28192029bdb1ac027c53674721875da6b10`), WBTC-USDC (`0x4ba48df24008429ae9140a01e0d002f5fa6a125d`), ETH-USDT (`0xc5af93687088c28da839371f3249df757b219aa8`), and USDC-HAPI (`0x17bdceec80d3506e384db09e5d5696edf70605ef`).
- **Key fields**: `account_address` (farm contract address), `account_name` (trading pair identifier)

### Component C: Token incentive aggregation
- **Purpose**: Calculate daily totals of VERSE tokens distributed per trading pair
- **Logic**: Group the joined data by day using timestamp truncation to daily boundaries. Sum the `tokenAmount` values for each day, trading pair, and metadata combination. Maintain business classification fields including business line as "Exchange AMM", market sector as "exchanges", and business segment as "dex".
- **Key fields**: `timestamp` (daily boundary), `token_incentives` (daily VERSE token amount), `account_name` (trading pair)

### Final aggregation
- **Combining components**: Sum all daily VERSE token distributions across all seven trading pairs to get total daily incentive payments
- **Currency conversion**: Convert VERSE token amounts to USD using end-of-day price feeds and apply decimal corrections to ensure proper token denomination (accounting for VERSE token's decimal places)
- **Time aggregation**: Aggregate to daily totals using day-truncated timestamps, ensuring consistent daily boundary logic
- **Final calculation**: The expenses value equals the total USD value of all VERSE tokens distributed as liquidity mining incentives on each day. Apply zero-filling strategy for days with no incentive distributions to maintain complete time series data.

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

Total project operating and incentive expenses.

VerseVERSE

Expenses

Expenses

Competitive landscape