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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Verse

# Verse Token incentives Methodology

## 1. Overview

The VerseDX token incentives metric measures the daily value of VERSE tokens distributed as liquidity mining rewards across VerseDX's automated market maker (AMM) pools. This metric quantifies the protocol's expenditure on incentivizing liquidity provision by tracking `RewardPaid` events from liquidity farming contracts and converting the distributed VERSE tokens to USD values.

## 2. Data sources

- **Ethereum event logs**: Parsed `RewardPaid` events from seven VerseDX liquidity farming contracts on Ethereum
- **Token price feeds**: End-of-day VERSE token price data for USD conversion
- **Token metadata**: VERSE token contract information including decimal precision
- **Farm configuration data**: Hardcoded mapping of farm contract addresses to their corresponding trading pair names

## 3. Step-by-step calculation

### Component A: Raw incentive events extraction
- **Purpose**: Captures all VERSE token reward distributions from VerseDX liquidity farming contracts
- **Logic**: Extracts `RewardPaid` events from seven specific farm contracts on Ethereum (ETHDAIFarm, ETHUSDCFarm, VERSEETHFarm, WBTCETHFarm, WBTCUSDCFarm, ETHUSDTFarm, and USDCHAPIFarm). Each event contains the recipient address, transaction details, and the `tokenAmount` field representing VERSE tokens distributed as rewards. All events are tagged with business metadata indicating they belong to the Exchange AMM business line under the DEX segment.
- **Key fields**: `block_timestamp` for timing, `address` as the farm contract address, `tokenAmount` as the raw VERSE token reward amount, and transaction identifiers (`transaction_hash`, `log_index`)

### Component B: Farm contract mapping
- **Purpose**: Provides human-readable names for each liquidity farming contract
- **Logic**: Maps seven hardcoded farm contract addresses to their corresponding trading pair names. For example, contract `0xdd5a9eec299b74b2db2d3430608c1c5a8d9598eb` maps to 'ETH-DAI', and `0x4e1f1206f2b9a651ecf2d49c5d33761861d4910c` maps to 'ETH-USDC'. This creates a dimension table linking contract addresses to readable pool names.
- **Key fields**: `account_address` containing the farm contract address and `account_name` with the trading pair identifier

### Component C: Event enrichment and joining
- **Purpose**: Combines raw reward events with farm names and applies business classification
- **Logic**: Joins the reward payment events with the farm contract mapping using `account_address` to enrich each reward distribution with its corresponding pool name. Sets the token address to the VerseDX token address (`0x249ca82617ec3dfb2589c4c17ab7ec9765350a18`) and assigns protocol version as 'v1'. Truncates timestamps to daily boundaries for aggregation.
- **Key fields**: `timestamp` (daily), `account_name` as the pool identifier, `token_address` as the VERSE token, and `amount` as the raw reward amount

### Final aggregation
- **Combining components**: The enriched events are processed through a USD conversion pipeline that applies end-of-day VERSE token prices to convert raw token amounts to USD values, while correcting for token decimal precision
- **Currency conversion**: Uses end-of-day price feeds to convert VERSE token amounts to USD, ensuring consistent valuation timing across all distributions
- **Time aggregation**: Events are aggregated to daily boundaries using timestamp truncation, capturing all reward distributions that occurred within each calendar day
- **Final calculation**: The metric represents the total USD value of VERSE tokens distributed as liquidity mining incentives per day across all VerseDX farming pools, with any missing days filled with zero values to maintain complete time series continuity

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

Value of native tokens distributed as incentives.

VerseVERSE

Token incentives

Token incentives

Competitive landscape